USD EXPECTED TO RALLY IN SEPTEMBER
● USD is mixed – growth currencies strong; the other majors & EM weak.
● USD focus is nonfarm, Syria and flows away from more vulnerable EM.
● CAD rallies on improving global growth outlook; risk BoC (10am EST).
● EUR is flat leading into Thurs’ ECB meeting—we expect a dovish tone.
● GBP rallies after strong PMIs; however BoE on Thurs is key risk.
● EURGBP breaks below multi-month range driving technical selling.
● JPY is weak leading into what is expected to be non-event BoJ release.
● AUD is strong, up 2% after better than expected GDP combines with neutral RBA and a recent uptick in Chinese data to support AUD.
● Today: BoC, trade, Fed Beige Book & speakers; but nonfarm is focus.
Read the full report: FX Daily
Scotiabank