US dollarThe market mood at the start of the week, remained buoyed by the latest optimism on the US-China trade talks, with both the teams hailing “enormous progress” toward reaching a “phase one” agreement.
The safe-haven Yen remained under pressure amid risk-on action in the Asian equities that hit 14-week highs, but USD/JPY failed to benefit and remained stuck around 108.20 region amid broad-based US dollar weakness. Heading into Europe, both the European currencies, the EUR/USD and Cable are trading little changed, awaiting fresh impetus from the upcoming macro-economic releases.
We have a busy EUR calendar ahead, with a slew of the Euro area Final Manufacturing PMI reports for October. Also, at 09:30 GMT, both the UK Construction PMI and Eurozone Sentix Investor Confidence data will grab some attention.
Next of relevance is the US Factory Orders data due on the cards at 15:00 GMT among other minority reports. The focus remains on the European Central Bank (ECB) President Lagarde’s debut speech, due at 18:30 GMT, for fresh hints on the bloc’s monetary policy. Meanwhile, traders will keep a close eye on the Brexit and trade-related headlines as well.
Oil kicked-off the brand-new week on a positive note, hitting fresh five-day highs at 56.41. But backed-off quickly amid a lack of fresh catalysts and holiday-thinned markets, as Japanese markets are closed on a National holiday.
Gold initially stopped the previous three-day rise as weekend comments from the have been increasing the odds for a phase one trade deal with China. However, recent comments from the Trade Secretary Ross highlighted the underlying tension between the world’s top two economies despite citing possibilities of an initial deal.