The USD is mixed into the open as yesterday’s massive profit taking has eased. China’s CPI was softer than expected at 1.4%, OPEC suggest that demand for its oil will be lowest in 12 years, and speculation over the Fed, ECB, SNB, Norges Bank and RBNZ increases. In this environment, NOK and CAD have weakened due mainly to their correlation to oil prices; while AUD and NZD are strong on the rising hopes of further Chinese stimulus; JPY is strong as risk aversion is a core theme; leaving the Europeans as mid‐performers. Today there is no U.S. data and no Fed speakers (as they are in their quiet period into the December 17th meeting); accordingly the market will likely be driven by broader global themes.
Read the full report: FX Daily