Disappointing economic data from China and Eurozone and concerns over the banking sector in Portugal have weighed on market into the open. The Fed minutes, confirming an October end to QE, provided a relatively stable tone for markets. Rising risk aversion on both geopolitical risks and fears over Q2 outlooks that are risk of provingtoo optimistic are the core themes and leave EUR, CAD and AUD at risk of downside pressure. Today’s data is relatively light (see page 3); with the highlight the after market close speech by Fed Fischer, his first.
Read the full report: FX Daily