GBP RALLIES AFTER BOE INFLATION REPORT
• USD is mixed as GBP & JPY rally; but others fall on tapering fears.
• CAD is weak as growth fears and tapering risk take hold. Quarter-end USDCAD risk is higher.
• EUR is flat; caught between a strong GBP and strong USD. German industrial production orders prove strong.
• GBP rallies +0.6% as BoE introduces 7% unemployment threshold with lots of caveats & an increased GDP forecast; forcing short covering.
• JPY is strong leading into the BoJ decision—we expect non event.
• AUD gives back yesterday’s gains into the employment report.
Read the full report: FX Daily
Scotiabank