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2 Mar 2015
Big week in FX - Scotiabank
FXStreet (Guatemala) - Camilla Sutton, chief FX strategist at Scotiabank explained that the week ahead is a big one in the FX space.
Key Quotes:
"USD is mixed into a data and central bank heavy week. FX pairs are in ranges, searching for a catalyst."
"CAD is within range, contained by the conflicting forces of lower oil prices, the PBoC rate cut and anticipation over the BoC on Wed.
"EUR is strong, with the flash CPI falling –0.3%y/y better than expected and core steady at 0.6%y/y. GDP forecasts start to shift higher.
"GBP is soft as EUR/GBP rallies materially. Fundamental UK was mixed, but manufacturing PMI was stronger than expected at 54.1."
"USD/JPY rises but contained within broad range. Capex disappoints."
"AUD is soft as inflation expectations fall; the RBA looms at 10:30pm EST. We expect a cut to 2.0%, but unlikely to push AUD to lows."
"CNY hits fresh lows as PBoC official shifts by cuƫting rates by –0.25%."
""CFTC data highlights: all currencies held net short against the USD, but a narrowing in the major’s gross short positions continue."
Key Quotes:
"USD is mixed into a data and central bank heavy week. FX pairs are in ranges, searching for a catalyst."
"CAD is within range, contained by the conflicting forces of lower oil prices, the PBoC rate cut and anticipation over the BoC on Wed.
"EUR is strong, with the flash CPI falling –0.3%y/y better than expected and core steady at 0.6%y/y. GDP forecasts start to shift higher.
"GBP is soft as EUR/GBP rallies materially. Fundamental UK was mixed, but manufacturing PMI was stronger than expected at 54.1."
"USD/JPY rises but contained within broad range. Capex disappoints."
"AUD is soft as inflation expectations fall; the RBA looms at 10:30pm EST. We expect a cut to 2.0%, but unlikely to push AUD to lows."
"CNY hits fresh lows as PBoC official shifts by cuƫting rates by –0.25%."
""CFTC data highlights: all currencies held net short against the USD, but a narrowing in the major’s gross short positions continue."