STABILITY AFTER TWO DAYS OF VIOLENT REACTION
• USD is mixed but markets stabilize after violent 2‐day reaction to Fed.
• CAD is flat—today’s data (CPI & retail sales) important for BoC expectations. OIS market pricing in 36% prob of interest rate hike in 12mths.
• EUR is flat; fears of Greece increase, but the EU finmin agreement on direct bank recap by the ESM is a positive development.
• GBP is flat stabilizing for the second day.
• JPY is down 0.4%; minimal reaction to Gov Kuroda’s comments.
• AUD has stabilized, down 11.3% ytd (surpassing even JPY losses).
• CNY is flat; Shibor eases after PBoC rumoured to have quietly entered.
Read the full report: FX Daily
Scotiabank