ASSET ALLOCATIONS SHIFT ‐ PREPARING FOR TAPERING
• USD is quiet relative to yesterday as market catches its breath.
• Yesterday’s trading pattern highlights important themes.
• CAD is quiet trading within six session 94-point range. Int’l securities transactions and manu sales important but maybe less so today.
• EUR is holding in close to highs supported by flows, oil & sentiment. CPI – as expected rising 1.6%y/y on headline and 1.1%y/y on core.
• GBP is holding in close to highs for similar reasons to EUR; no data.
• JPY is also quiet—caught between flows, risk, equities and bond yields.
• AUD is strong flirting with a break above its 50‐day MA as rumour spreads that China considers cut to RRR.
• Gold is quiet—after leading yesterday it is struggling to break above is 100‐day MA. Since bottoming in June it has rallied 17%
Read the full report: FX Daily
Scotiabank