USD RALLIES; GLOBAL DISINFLATION BECOMES THREAT
* USD is strong, trading to two months highs against most currencies.
* USD supported by strong nonfarm, ECB decision & building global disinflationary pressures. Risk is Yellen before the Senate on Thurs.
* CAD is weak & trending lower. FinMin Flaherty gives budget update.
* EUR is showing some signs of near‐term stabilization. German CPI soft.
* GBP is weak as inflation is soft opening door to a more dovish BoE.
* SEK drops 1.3% as inflation shifts to deflation pressuring the Riksbank.
* JPY is weak. USDJPY finally breaks up above narrowed range.
* CFTC confirms a build in USD long positions as EUR longs collapse.
Read full report: FX Daily
Scotiabank