Themes

· General mood is “risk off”

· Bank of Canada’s Macklem: Canada needs higher interest rates

· German IFO Business Climate stronger than expected at 91.8

What’s Moving

Some wide swings on currencies overnight, but most of it was flow driven, with little in the way of data or events providing any market moving direction.

Euro and Sterling opened on the offer in New York trade, with technical sales pushing both weaker after the early going saw both break recent lows. This had a knock on effect to the AUD, which also traded weaker on the session. Late trade saw some position covering brin these back off day lows.

Thoughts

After the wide swings overnight, expect some consoliation in Asia today, with position adjustment expected to be the dominant flow.

Data in Asia today includes:

· Japanese Unemployment (E: 2.7%)

· Japanese BoJ Core CPI (E: +1.1%)