MARKET HAS TUNNEL VISION ON FED
* USD is broadly but immaterially higher as the Nikkei reports that Larry Summers is likely candidate to be put forward by President Obama.
* USD could see major impact in 2014 by significant changes at the Fed.
* CAD is flat to slightly weaker; we expect weakness into year-end but stabilization in 2014.
* EUR is flat to down; SSM is approved, but road ahead for banking union is still long.
* GBP is flat as construction output outperforms; limited news.
* SEK falls as GDP disappoints; Riksbank holds conference on ‘bubbles’.
* NOK falls as PM suggest a weaker NOK is important piece of growth.
* JPY is weak after Nikkei’s Summers article; news flow limited.
* Today: US retail sales—expect a knee jerk reaction to fade in session.
Read the full report: FX Daily
Scotiabank