USD LIKELY TO RALLY INTO SEPT TAPER; NONFARM IS RISK
• USD is broadly stronger as markets price in Fed and relative growth outlooks. Today’s jobless claims likely to also support Sept tapering.
• CAD is weak trading with the broad USD. Risk is retail sales today.
• EUR falls failing to react to strong PMIs, as the broad USD rally firms.
• GBP drops as Weale’s comments opens door to QE; broad USD rally.
• JPY falls 1%, breaking out of range—proving most sensitive to tapering.
• AUD rallies 0.3% – China’s HSBC PMI print of 50.1 proves encouraging.
Read the full report: FX Daily
Scotiabank