The risk sentiment remains upbeat in the wake of Chinese trade and stimulus hopes after the country’s exports slowed in August. Also, higher US yields underpin the dollar against the euro, yen and gold.
The euro was under pressure on Monday ahead of a European Central Bank meeting later this week at which policymakers are expected to deliver new stimulus to bolster a flagging regional economy.
Sterling edged lower as political uncertainty about how the UK would complete its divorce with the European Union by an Oct. 31 deadline dented appetite for the pound.
The dollar was confined to a narrow range versus the yen as traders weighed the prospect of U.S. interest rate cuts against their demand for safe-haven assets.
Later today in the docket, EMU’s Investor Confidence tracked by the Sentix Index is due. The UK docket has the monthly GDP release today, alongside the releases of the Kingdom’s Trade Balance and Industrial Production, all of which will drop in at once later in Europe at 08:30 GMT. Meanwhile the NA docket remains data empty.
Oil prices rise on optimistic comments by UAE and Saudi Arabia on OPEC+ output cut policy and on the appointment of the new Saudi Energy Minister Prince Abdulaziz bin Salman.
Gold is flashing green, possibly in response to a drop in China’s trade surplus. Further, news crossed the wires earlier today that China could further rate cuts this year. The talk of aggressive easing by China may have added to the bid tone around the yellow metal.