PBoC SUGGEST INCREASED FLEXIBILITY IN CNY
* USD is mixed; market focuses on tapering timing being pulled forward, China’s reforms and a more bearish OECD global growth outlook.
* CAD is weak on tapering expectations and growth. Risk is Poloz (Wed) and inflation release (Fri). Today: Murray at 5:30pm EST.
* EUR is flat—as ZEW proves encouraging but ECB policy still in focus.
* NOK is strong after better than expected GDP of 0.7%q/q.
* GBP is weak on limited news flow. Tomorrow: BoE minutes.
* JPY rallies, as risk appetite fades. Most expect BoJ to fail on infl target.
* AUD is strong on China’s news. RBA minutes contain no surprises.
* CNY—PBoC suggest band widening, an end to FX intervention, a freely floating currency (eventually).
* Today: Evans at 2:15pm EST followed by Bernanke today at 7pm EST.
Read full report: FX Daily
Scotiabank