USD LIKELY TO WEAKEN ‐ FISCAL & MONETARY
* USD is weak as market focuses on potential US government shutdown; Merkel win & stronger than expected Chinese HSBC PMI.
* CAD is flat with a quiet day ahead it is likely to take cues from USD.
* EUR is flat after Merkel win removes election risk; Eurozone PMI stronger; but Germany’s are in expansion but weaker than expected.
* GBP is strong with limited news flow and several BoE speakers ahead.
* JPY is strong—Asian session light with Japan was on holiday today.
* AUD rallies after stronger than expected Chinese HSBC PMI.
* CFTC: suggest market was positioning for weak USD leading into Fed.
* Today: comments from ECB’s Draghi & Fed’s Lockhart, Dudley, Fisher.
Read full report: FX Daily
Scotiabank