US dollar
The market sentiment remains buoyed by China’s fresh policy measures, deployed over the weekend, to curb the yuan appreciation while the country’s central bank set financial institutions free from the need to set aside cash when purchasing FX for clients through forwards. The US dollar wallowed in two-week lows against its main peers amid dull trading in observance of Columbus Day.
The Asian equities traded mostly higher, led by the rally in the Chinese stocks amid a slump in the yuan. The US stock futures flashed moderate gains despite all the hopes watered down on a US fiscal stimulus deal likely to be reached ahead of the US election.
The coronavirus resurgence in Europe is intensifying, with France having reported record-high new daily cases of about 27K on Saturday. In response to the coronavirus concerns in Europe, the EUR/USD pair gapped nearly 25-pips down in the weekly Asian opening to test the 1.1800 level before reversing towards 1.1830. Focus remains on the ECB President Christine Lagarde’s speech.
GBP/USD refreshed five-week highs at 1.3051 despite the looming Brexit concerns, as the UK PM Boris Johnson gears up or an Australia-style trade deal if there’s no agreement by October 15 deadline.
USD/JPY trades below the 105.50 mark as the yen pair extends Friday’s losses amid mixed data and risk reset.
Gold consolidated last week’s surge to two-week highs of $1930, as the bulls now await a strong catalyst to surpass the critical $1939 barrier.
WTI fell over 1% to $40 mark amid an end to the Norwegian strike and restoration of US oil output, as the hurricane Delta weakened.
The data calendar is light on Monday, with just the European Central Bank President Christine Lagarde’s speech, due at 11:00 GMT.