FX Space in a snapshot - Scotiabank

FXStreet (Guatemala) - Camilla Sutton, chief FX strategist at Scotiabank offered a snap shot of the market.

Key Quotes:

"The USD is strong; most pairs within month long ranges; USD spiked into
the NA open as Bullard said that ‘’patience” should be removed."

"USD—Core CPI is expected to be stable at 1.6%y/y, important for an‐
anticipating the first Fed hike."

"FX vol collapses lower reflecting the recent range bound patterns."

"However several currencies (AUD & GBP) are testing the upper bound."

"CAD is soft with correlations having shielded away from oil prices and
towards interest rates & the broad USD."

"EUR is soft on Bullard’s comments after trading in a narrow range; German employment stronger than expected." 

"GBP softens as Q4 GDP suggests strong exports offset by soft  consumption and business investment. 100‐day MA looms at 1.5568."

"USD/JPY trades in narrow range as equities hit fresh highs and vol col‐
lapses. Slew of fundamental data likely to support higher USD/JPY."

"USD/JPY value in long at 118.75, target 121.85 & stop at 117.80."