AUD & NZD RETRACING WED LOSSES; BOE HOLDS RATES
– USD is weaker entering two day G7 meetings; dovish Fed Evans at 10am EST is biggest risk in subdued data week.
– CAD is flat to yesterday’s close as it flirts with parity. BoC Poloz’ views on financial stability not CAD will be key to gauging Cdn rates.
– EUR is flat after a quiet session on limited news flows.
– GBP rallies on strong IP; BoE leaves rates at 0.5% & QE at £375bn.
– JPY stronger, but within yesterday’s range, on limited news flow.
– KRW weakens on rate cut to 2.5% that raises weak JPY as an issue.
– AUD rallies on strong employment; RBA MPR today at 9:30pm EST.
– CNY rallies to new high; CPI is stronger than expected at 2.4%y/y.
– Spillover effects from G4 central bank policy are driving FX markets.
Click here to read the full report: FX Daily
Scotiabank