A quiet Friday session in Asia and Europe for the major, conceals significant downward pressure on the commodity currencies, with AUD having broken down below 0.98, losing 6% so far in May and NZD not far behind having lost 5%. CAD is holding up well on a relative basis, but after yesterday’s weak housing data coupled with a broad USD rally after Fed Williams comments CAD is also weakening. Today’s US data includes University of Michigan confidence and leading indicators. The Fed’s Kocherlakota (non‐voting dove) speaks at 1:45 on a panel and on Saturday Chair Bernanke delivers a commencement address. The market focus is employment and Fed policy, leaving the most important upcoming risks next week’s testimony by Chair Bernanke followed by the nonfarm payroll release on June 7th.
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Scotiabank