N.Y. FX Outlook
N.Y. FX Outlook: Risk-on conditions continued overnight, leaving equities higher, and yields little changed. Japan stocks were up on prospects for a snap Japan election, while a stronger German ZEW sentiment indicator rallied European bourses. USD-JPY topped 111.88, while EUR-USD edged briefly over 1.2000 before sellers emerged. The U.S. calendar will reveal August housing starts, which analysts expect will slip slightly to 1.150 M from 1.155 M previously. August import and export prices are due, with the former seen up 0.4% from 0.1%, and the latter expected rising 0.2% from 0.4% previously. The Q2 current account deficit is forecast to narrow to $109.4 B from $116.8 B. The two-day FOMC meeting gets under way, with the policy announcement due on Wednesday. No rate action is forecast, but the Fed is expected to announce the start of the balance sheet unwind.