Currency Focus

USD - The Beige Book revealed that some Fed districts had noted a slowing in activity, but this was not that major and is unlikely to significantly alter the Fed’s overall view of the economy. The report also noted some signs of stabilisation in the housing market and unchanged price pressures.

CAD - The Bank of Canada kept its key interest rate unchanged at 4.25% for a sixth meeting and signaled policy makers are not leaning toward a rate cut or hike soon. “Despite recent volatility in global financial markets, the Bank continues to judge that the risks to its inflation projection are roughly balanced.

EUR - Trichet comments are saying that ECB is pretty much dovish after hiking the 25bps to 3.75%. In his sppech he did not said anything like "strong vigilance" or "our interest are still low". This itself saying that Trichet comments is dovish. And he said that he'll be watching inflation very closely.