– USD is weak, retracing some of yesterday’s strength.
– Gold’s 15% two session collapse suggest unease with the economic outlook, vulnerable markets & limited ability for the Fed to taper QE.
– CAD is retracing yesterday’s losses; however a weaker US and Chinese growth profile combined with lower oil prices is a concern.
– EUR is strong, as markets calm, CPI is in line with expectations, Spain holds a reasonable T‐bill auction; but ZEW disappoints.
– GBP rallies; 2.8% CPI is in line with expectations but above BoE target.
– JPY is weak, down over 1% as risk appetite shifts again.
– AUD is recovering; RBA in wait & see mode; minutes hold no surprises.
– CNY reaches new high; Moody’s cuts its outlook from positive to stable.
– Today: US CPI, housing starts, IP as well as Fed Evens, Yellen & Duke.
Click here to read the full report: FX Daily
Scotiabank