US: Presidential debate in the limelight – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, suggests that the Clinton and Trump head into the first Presidential debate with polls showing Clinton’s lead narrowing in some swing states.

Key Quotes

“FiveThirtyEight puts Trump’s odds of winning near a two month high (42-43%). The outcome of the debate will be watched most closely for MXN but we still argue CAD is the currency that is really underpriced for US election risk.

Durable goods data are the highlight of a quiet week for US data. The industrial side of the economy has been surprisingly soft and seems likely to remain so. The weaker manufacturing tone is also consistent with a decline in the capex proxy. Yellen testifies to the House Panel on bank supervision on Wednesday. The topic is regulation but in theory she could be asked anything.”