– China’s 3Q GDP accelerated from Q2 and September data surprised positively
– Turkey likely to ease monetary policy
– Philly Fed in focus in the US
– We recommend selling INRTWD
What to watch for today
CLP: On hold. Our economists expect the central bank to leave rates on hold at 5.0%, in line with consensus expectations. Last week’s economic expectations survey showed steady inflation expectations and slightly firmer median growth estimates, supporting our view. We believe the central bank will remain on hold throughout the end of the year and through 2013. On the FX front, we continue to see significant likelihood that the central bank will likely intereve below 470, suggesting the risk reward for CLP longs is unattractive at current levels. As such we are short CLP against MXN in our cash portfolio.
Click here to read the full report: FX Daily
Credit Suisse