After global manufacturing PMIs generally supportedan environment of improving global growth most markets are firmer today,with a weak USD and US yields hovering close to 3%. FX vol is creepingslowly higher, which we expect to be an important theme in 2014 as unconventional central bank policies, that initially crushed vol, begin tobe unwound. Today at 2:30pm EST, Chair Bernanke will speak on “Thechanging Federal Reserve—past, present, future”. Next week is an importantone with the release of nonfarm payrolls, a slew of Chinese dataand the ECB meeting, which together should provide direction for FX markets into 2014.
Read the full report: FX Daily
Scotiabank