CAD STRONG INTO CPI RELEASE
• USD is broadly weaker; US equities reach record highs, oil hits 15-month high. No data or Fed speakers today; G20 risk this weekend.
• CAD is strong leading into CPI, an key input for BoC expectations.
• EUR is strong as much of the Eurozone faces political uncertainty, Spanish housing price fall further and Italian industrial orders are soft.
• GBP is strong as markets continue to digest direction of BoE.
• JPY is strong leading into the weekend upper house election, important for providing support for PM Abe’s three arrow approach.
• AUD rallies on PBoC news; but still within weekly range.
• CNY within recent range—PBoC removes lending rate floor as rumours of a band widening swirl.
Read the full report: FX Daily
Scotiabank