USDCAD UPSIDE RISK; EURUSD DOWNSIDE RISK
* USD is weak as market focuses on potential for Fed to lower unemployment threshold but with some caution ahead of ECB & nonfarm.
* CAD is strong on a weak USD; negative oil pricing is gaining attention.
* USDCAD s.t. trade idea: long at 1.0450, target 1.0560, stop 1.0380.
* EUR is strong but within range. Data today was encouraging, but the ECB looms tomorrow. We expect a dovish ECB and rate cut in Dec.
* GBP is strong as both manufacturing and industrial production were strong. BoE unlikely to shift policy stance on Thursday.
* JPY is within range; BoJ minutes highlight spillover impact of Fed policy. FinMin suggest FX intervention can prove successful.
* AUD rallies on broad USD weakness; employment Wed at 7:30pm EST.
* NZD is up 0.5%, as strong employment fueling RBNZ expectations.
* CNY is strong with October data to be released Thurs & Friday.
Read full report: FX Daily
Scotiabank