EUR WEAK AS ECB LIKELY TO TURN MORE DOVISH
* USD is mixed; as EUR collapses & growth sensitive FX outperform.
* Today, expect ongoing EUR weakness but a generally quiet session.
* Today, ISM, vehicle sales & Fed’s Bullard (dove) are highlights.
* CAD is stronger reacting to broader moves; no domestic data.
* EUR is weak, as market rushes to price in a more dovish ECB on the back of yesterday’s soft CPI. Diverging policy is driving weak EUR.
* GBP is soft ‐ PMI manu disappoints on headline but details are strong.
* EURGBP is weak and poised to drift lower on relative fundamentals.
* JPY is trading within its narrowing range. Expect upside USDJPY break.
* AUD is strong after China’s expansionary PMI. RBA meets on Nov. 4.
* CNY is weak—but an expansionary PMI of 51.4 is encouraging.
Read full report: FX Daily
Scotiabank