A slow start to finish the week – TDS

The week is set to finish on a quiet note with global equities on a moderately firmer trajectory, writes Ned Rumpeltin – European Head of FX Strategy at TD Securities (TDS).

Key Quotes:

“Most G10 and major EM currencies are holding to fairly narrow ranges against the USD despite a raft of “flash” PMI releases and a major policy speech from the new ECB President. Today’s Canadian retail sales report is our main data focus. We think USDCAD can trade lower if today’s data does not disappoint.”
 
“In line with a brewing “not good but less bad” macro theme, today’s PMIs have offered a few selective rays of hope. While it is still too early to say, the better German data adds to the narrative that worst may be over for the global economy. If confirmed by Monday’s IFO reading, we think EUR can start to show more promise on certain key crosses – EURGBP in particular.”
 
“ECB President Lagarde delivered her first policy speech but her comments provided few cues on monetary policy. Instead, she focused almost entirely on the need for structural reform in the Eurozone. This leaves us watching Chief Economist Lane for any hints that December’s meeting may contain any further downgrades to the outlook.”