USD RALLIES ON RELATIVE GROWTH; YELLEN IS RISK
* USD rallies as the relative growth outlook favours the US against Europe; a dovish Yellen is priced in but testimony important (10am EST).
* CAD is weak leading into what is expected to be a disappointing trade balance and ongoing negative media focus. Yellen & USD is key risk.
* EUR is weak after Q3 GDP disappoints and exacerbates ECB dilemma.
* GBP is flat, even after weak retail sales; technicals remain bearish.
* EURGBP downside pressure builds both fundamentally & technically.
* JPY weakens even as GDP surprises higher; on broad USD strength.
* AUD weak on broad USD and RBA’s Ridout warning over level of AUD.
* NZD is soft; disappointing retail sales somewhat offset by confidence.
Read full report: FX Daily
Scotiabank