The US$ is firmer again today, after breaking through 1.1300 against the Euro in early European trade, to reach levels last seen in June 2017. Also leading the charge lower for the EU majors has been Sterling, which again fell hard because of new Brexit woes, as hopes of a November Brexit deal continue to fade. The commodity bloc followed suit and both the Aud and Kiwi look heavy heading into early Tuesday trade.
Elsewhere, stocks have taken a hit, with the US indices trading down by between 1.3% (S+P)/1.9% (Nasdaq), while the metals are also under pressure from the stronger US$, and a break of 1200 (Gold) and 14.00 (Silver) looks imminent. WTI had a volatile ride, initially heading sharply higher on hopes of OPEC production cuts, before turning sharply lower after Donald Trump used his Twitter Account to say that he hopes there will be no oil output reductions and that the price should be much lower. The market has listened, with WTI currently at 58.80, down from a 61.25 session high. The bond market was closed for the Veterans Day holiday.
Tuesday will begin with the NZ Food Price Index and the NAB Business Conditions/Confidence. That will be all from Asia, while Europe will follow up with the German (CPI, exp 0.2%mm, 2.5%yy; PPI, exp 2.4%yy), the German/EU ZEW Economic Sentiment Survey and the UK Unemployment data. The US will be quiet again, with just the US NFIB Business Optimism Index and the October Monthly Budget Statement due for release.
Economic data highlights will include:
Tue: NZ Food Price Index, NAB Australian Business Conditions/Confidence, German CPI/HICP, German/EU ZEW Economic Sentiment Survey, UK Unemployment, US NFIB Business Optimism Index, US Monthly Budget Statement
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