EUR DOWNSIDE MOMENTUM IS BUILDING
* USD is mixed as Senate inches towards a deal to end the shutdown.
* USD—our base case is a rally into year‐end on core FX drivers.
* CAD is flat; housing data today & CPI on Friday.
* EUR is weak on US gov’t outlook & rising concern over Greece’s funding gap; uncertainty over the AQR & the banking union negotiations.
* EUR for near‐term traders: short at 1.35, target 1.3393, stop at 1.3561.
* GBP is weak, following EUR’s lead. CPI firming but employment is key.
* JPY is flat, ignoring industrial production (‐0.9%m/m).
* AUD rallies to four month high; RBA minutes deliver no surprises.
* CNY rallies to new high; FX reserves rise to new high $3.7trn high-lighting Treasury vulnerability; Q3 GDP on Thursday (cons. 7.8%y/y).
* Today: Empire, Fed’s Dudley and Fisher but US Senate to be focus.
Read full report: FX Daily
Scotiabank