NONFARM EXPECTED TO TRUMP JACKSON HOLE
• USD is generally strong with flows the main driver. No data today.
• Primary dealer survey: Sept $15bn taper & rates on hold until H215.
• CAD is weak and likely to weaken further. Today’s risk: CPI.
• EUR is flat after the details of Q2 German GDP are encouraging.
• EUR resiliency is the surprise of the year—see below for the drivers.
• GBP fails to rally after encouraging GDP—suggesting upside is limited. Wed’s Carney speech is opportunity for explanation of fwd guidance.
• JPY breaks out of range. Kuroda to speak at Jackson Hole.
• Expectations for Jackson Hole are limited; FX focus should be nonfarm.
Read the full report: FX Daily
Scotiabank