USDJPY RALLIES ABOVE 100; MORE UPSIDE LIKELY
* USD mixed; initially strong on Fed minutes but lost ground on Draghi.
* Today: jobless claims, PPI & three Fed speakers (2 doves and a hawk).
* CAD is weak reacting to soft China HSBC PMI and USD minutes. Poloz proved non‐event. Domestic risk from here is Friday’s inflation.
* EUR stabilizes after volatile session. Draghi says ECB does not see deflation risk; bigger picture is that ECB policy is likely to weigh on EUR.
* GBP is stronger on limited news flows. Better risk/reward elsewhere.
* JPY is weak; BOJ governor concedes that it has room for policy action.
*AUD is weak on China’s PMI & Gov Stevens’ defense of FX intervention.
* CNY is flat after HSBC PMI is softer than expected at 50.4.
Read full report: FX Daily
Scotiabank