BOC & FED TODAY PUT USDCAD AT RISK
– USD is broadly stronger as markets struggle under weak earnings, rising fears over global growth and jittery nerves.
– CAD is weak leading into the BoC (10am EST); we expect the Bank to sound less hawkish than March but more hawkish than market expects.
– EUR is weak after disappointing corporate earnings and car data; however relative monetary policy favours near‐term EUR upside risk.
– SEK is weak, down 1.3%, as Riksbank pushes out rate increase expectations to H2 2014 in part due to a strong currency.
– GBP is soft, on weak employment and BoE minutes.
– JPY is weak leading into G20; China signals support for BoJ policy.
– Gold temporarily stabilizing at low $1375 level.
Click here to read the full report: Market Research
Scotiabank