Currency Focus
USD - So yesterday wa eventful day for USD one report Durable Goods Orders came below the expectation and otherside of the story Consumner Confience also came in very bad indeed. But Existing Home Sales and Richmond Index came in above the expectations. Fed chairman has generally viewed upside inflation risks as greater than downside risks to growth.
EUR - The ECB will probably regard these strong M3 numbers with high alarm and still be looking to head rates up to 4.0 pct next year to quell future inflation risks.
JPY - BoJ Governor Fukui has more or less spend the last week telling everyone that BoJ will hike the rates gradually to avoid the economic swings that could come from hastily rate hikes. He also stated that it is important to communicate with markets on policy to avoid surprises. So far it seems like we are not going to see any rate hike from Japan in December. Otherwise Fukui would go back on his word almost before it is outspoken.
Japanese retail sales released last night were again softer than expected – down 0.2% m/m after a 1.5% m/m drop in the previous month indicating that consumer spending remains a sore spot for the Japanese economy. Some analysts suggested that sales for clothing were depressed by unnaturally warm weather in October much as sales in the summer were hurt by unseasonable amounts of rain.
CAD - What we see driving the Canadian dollar is fundamental investment in Canada...Canada is on the map for foreign investors.
EUR - The ECB will probably regard these strong M3 numbers with high alarm and still be looking to head rates up to 4.0 pct next year to quell future inflation risks.
JPY - BoJ Governor Fukui has more or less spend the last week telling everyone that BoJ will hike the rates gradually to avoid the economic swings that could come from hastily rate hikes. He also stated that it is important to communicate with markets on policy to avoid surprises. So far it seems like we are not going to see any rate hike from Japan in December. Otherwise Fukui would go back on his word almost before it is outspoken.
Japanese retail sales released last night were again softer than expected – down 0.2% m/m after a 1.5% m/m drop in the previous month indicating that consumer spending remains a sore spot for the Japanese economy. Some analysts suggested that sales for clothing were depressed by unnaturally warm weather in October much as sales in the summer were hurt by unseasonable amounts of rain.
CAD - What we see driving the Canadian dollar is fundamental investment in Canada...Canada is on the map for foreign investors.
posted by Naveen Pantera at 2:52 PM
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