The USD is strong with several currencies trading to new lows, the U.S. 10year is up to 2.36%, equities are strong and oil prices are soft but off their lows. FX volatility continues to shift higher. The U.S. mid‐term elections see the Republican gain control of the senate; Governor Kuroda strikes a dovish tone; and speculation builds that President Draghi faces a leadership test have all supported a strong USD. Today there are three Fed speakers, the dovish Kocherlakota and Rosengren (neither vote in 2015) and the hawkish Lacker (voting in 2015). ADP employment is expected to show job gains of 220k in the private sector, which would feed nicely into the 223k consensus expectations for Friday’s nonfarm payrolls.
Read the full report: FX Daily