USD IS BROADLY STRONGER HEADING INTO NFP
• USD — markets are positioned for a strong NFP print.
• Nonfarm—job gains at or above 185k should drive USD strength as it will raise expectations for a September taper; a miss will be USD neg.
• CAD weakens on broader USD trend; Energy East project is LT +ve.
• EUR unchanged amid focus on relative CB policy with ECB on hold.
• GBP outperforms on outstanding construction PMI of 57.0.
• JPY weakness continues as NFP highlights relative CB policy.
• AUD continues to hit new multi-year lows vs USD; RBA exp. to cut.
• CNY — PBoC announces enhancement of exchange rate flexibility, little additional detail provided.
Read the full report: FX Daily
Scotiabank