1) Risk-On: The upbeat data from China and optimism on coronavirus vaccine boosted the stocks and weighing on the dollar. Asian equities traded higher after China reported its industrial output rose by 5.6% in August, while retail sales increased by 0.5%, above market expectations.
2) The U.S. dollar remained weak, especially against the AUD which is benefiting from China’s data. Gold traded above $1,960, after hit a fresh highs at $1,969, supported by weaker dollar.
3) GBP/USD is failing to benefit from weaker dollar, hovering around 1.2850, as the House of Commons passed the controversial Internal Markets bill which violated the Brexit accord with the EU. Several members of Prime Minister Boris Johnson’s Conservative Party said they would vote against the legislation when it comes to a final read next week.
4) EUR/USD traded higher, ignored an escalating COVID-19 cases in the Eurozone. EUR is benefiting from the ECB’s lax approach to the exchange rate as expressed last week.
5) Tensions has rising ahead Federal Reserve’s decision on Wednesday. Investors will be looking on Fed updated forecasts for employment, inflation and GDP.
6) Oil prices declined amid reports that OPEC+ countries are unlikely to deepen petrol production cuts.
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