Leading into a US long weekend and Davos marketsare relative quiet and favouring risk. The USD is mixed with most currenciesbeing driven by domestic stories. Today’s data is second tier and the Fed is about to entering its quiet period ahead of the January 29th meeting with one last speech by the Fed’s Lacker (non‐voting‐hawk). Next week’s risk includes: the US holiday Monday, China’s December data releases, Davos and the BoC meeting. Yesterday, the Fed’s William(voting dove) warned that ZIRP is a worse problem than previously thought.
Read the full report: FX Daily
Scotiabank