The USD Stronger to Open the WeekDecember 02, 2013 Posted by: Mark Noble
The week opens with the yen continuing its slide (weaker) vs. the majors, now at a six-month low after various economic reports in China, Europe and the UK showed continued expansion in November. Increased global investor demand for risk taking is reducing the role JPY is used as a “carry trade” currency. Away from the yen, a few of the commodity currencies (AUD & CAD) are marginally weaker today vs. the USD, ahead of a couple local central bank rate meetings. Tomorrow’s RBA rate announcement and Tuesday’s BoC rate meeting are both expected to result in no change to current rates (AUD and CAD negative) despite the improving global economic picture. U.S. equities are slightly higher after opening in the red.
• U.S. ISM manufacturing rose to 57.3 in Nov., above consensus @ 55.0 vs. 56.4 for Oct.
• U.S. construction spending rose 0.8% in Oct., above consensus, vs. -0.3% in Sept.
• Canada’s RBC PMI dipped to 55.3 in Nov. from 55.6 in Oct., but still seen as strong
• U.K. Nov. manufacturing PMI surged to nearly a 3-yr high of 58.4, well above consensus
• Eurozone Nov. manufacturing PMI was revised marginally higher to 51.6 from 51.5
• EURUSD dipped to a 6-day low, USDJPY punched through a 6-month high
• GBP rallied to major-trend highs as market prices continue to have a bullish outlook
12/03 AUD: RBA Official Cash Rate Meeting
12/03 EUR: Eurozone PPI (Oct.)
12/04 EUR: Eurozone GDP, 2nd Release (Q3)
12/04 CAD: BoC Overnight Rate Target
12/05 EUR: Eurozone Refi. Rate
12/05 USD: GDP, 2nd release (Q3)
12/06 USD: Nonfarm Payrolls/Unemployment Rate Reports (Nov.)
12/06 CAD: Employment Reports (Nov.)
12/09 GBP: Trade Balance (Oct.)
12/09 CAD: Housing Starts (Nov.)
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