QUIET MARKETS; FX FOCUSED ON BROAD THEMES
• USD is relatively quiet except for JPY & CHF; data flow today includes retail sales, import prices, inventories and the Fed’s Lockhart.
• CAD is quiet with correlations suggesting the broader themes of QE, USD and global growth are the key near-term drivers.
• EUR is flat after stronger than expected ZEW; Ger-US 2yr yields support EUR at 1.33 for now; we expect it to trend lower into year‐end.
• GBP is flat after contained inflation and strong housing prices hint at future risks BoE policy poses to financial stability.
• JPY is weak after rumours of a cut in the corporate tax rate to offset the rising consumption tax; BoJ minutes hint at monetizing the debt.
• AUD continues to stabilize with limited news flow.
Read the full report: FX Daily
Scotiabank