Monday was a choppy session, with the US$ generally firm, and with the Euro still under pressure from the political uncertainty in Italy. The Canadian dollar was in focus, boosted by the new trilateral USMCA trade deal with the US and Mexico, while Sterling briefly shot higher on reports that UK PM Theresa May is ready to make a new offer on the Irish border negotiations although no details have been released and Sterling eventually gave up its gains. The Yen remains under pressure, probing against 114.00, which look set to give way while no safe haven demand it required. The crosses have been mostly mixed, as have stocks, while the main mover of the day was WTI, which shot up 3.3% on the back of heightened concerns over the Iranian sanctions crisis.
Tuesday will be busy, beginning with NZ Q3 Business Confidence (just released – worst figure since 2009. Kiwi down 10 pips) and then the RBA Interest Rate Decision. No change is expected to policy and all eyes will be on the Statement. Later on it will be the EU PPI and the US Total Vehicle Sales that are in focus, while the Fed Chair, Jerome Powell will also be speaking, as will the Fed board member Randal Quarles.
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