The Fed’s minutes should take center stage among the scheduled releases today, especially now that the uncertainty regarding who Bernake’s successor at the Fed is likely to be has dissipated (as widely expected Vice Chairwoman Yellen is reportedlyPresident Obama’s choice). However, news regarding the US’ political impasse is likely to remain a major driver, with the tail risk likely being substantial if a compromise is not reached – and heightened given it does not seem markets are positioned for the tails. On this front, LATAM FX, and its vols, have remained relatively steady.
Read full report: FX Daily
Scotiabank