EUR POISED TO TEST YTD HIGH OF 1.3711
* USD is mixed as US government enters third day of shutdown.
* USD rating risk—agencies waiting for debt ceiling to act. See summary.
* CAD is flat—no data on tap, reacting to broad trends.
* EUR rallies on Draghi, Italian confidence vote & strong data releases.
* EUR—long at 1.3600, targeting 1.3711 (ytd high), with a stop at 1.3525.
* GBP is flat; housing is strong and ytd GBP high of 1.6381 is in focus.
* NOK rallies: FinMin suggest Norges Bank has helped to limit NOK gains.
* JPY is weak leading into BoJ meeting; technically USDJPY looks weak.
* CNY is stable & on holiday; China released strong services PMI at 55.4.
* NZD is soft even as Gov Wheeler’s suggest rates to rise by 2% to 4.5%. We think there is relative value in NZD on the back of a hawkish RBNZ .
* Today: jobless claims, four Fed speakers and politics are the focus.
Read full report: FX Daily
Scotiabank