BOE HINTS AT 2015 RATE HIKES SUPPORTING GBP
* USD mixed, as domestic developments drive FX.
* USD—Chair Bernanke unlikely to stir markets—he speaks at 7pm EST.
* CAD is flat—media focuses on negative CAD story; but outlook is more balanced, with the broad USD likely the most important driver.
* EUR within yesterday’s range. News flow was light. IP disappoints.
* GBP rallies as BoE Inflation Report increases growth outlook, decreases unemployment forecast and hints at 2015 interest rate hike.
* SEK is weak as FinMin Borg suggest strong krona is an important risk.
* Trade idea: sell EURGBP at 0.8405, target 0.8200, stop at 0.8520.
* JPY is flat leading into Q3 GDP release (6:30pm EST); news flow light.
* NZD recovers early losses as financial stability report confirms that RBNZ likely to hike rates 2% between 2014 and 2016.
Read full report: FX Daily
Scotiabank