🇺🇸 USD – BEARISH
1️⃣ The risk-on tone weighing on USD.
2️⃣ Investors await more developments on a new stimulus plan in the US. House Speaker Nancy Pelosi set a Tuesday deadline for the White House to agree on further fiscal stimulus and said she was optimistic about negotiations after speaking with Treasury Secretary Steven Mnuchin during the weekend.
🇬🇧 GBP – BULLISH
1️⃣ British officials are prepared to rewrite Boris Johnson’s Brexit bill to get a deal with the EU while Michael Gove said an agreement could be reached if the bloc compromised. Talks between the EU and the UK will continue by phone on Monday.
🇪🇺 EUR – BULLISH
1️⃣ EUR benefitted amid broad dollar weakness and renewed optimism surrounding a Brexit deal. EU chief negotiator Michel Barnier and his British counterpart David Frost will speak by telephone later in the day to discuss the structure of future talks.
🇳🇿 NZD – BULLISH
1️⃣ NZD benefitted from risk-on tone boosted after House Speaker Nancy Pelosi set a Tuesday deadline for the White House to agree on further fiscal stimulus.
2️⃣ Westpac’s economists say the RBNZ will need to take further action due to a low inflation outlook, after a recent house price surge sparked fears that the central bank could over-inflate asset prices with more rate cuts.
3️⃣ The BusinessNZ Performance of Services Index for October read at 55.4, adding 0.9 points from the previous month.
🇨🇦 CAD – BEARISH
1️⃣ Crude oil prices declined amid mounting concerns over fuel demand recovery as the number of coronavirus infections continue to rise and several countries including the UK and Italy imposed fresh restrictions.
🇦🇺 AUD – BULLISH
1️⃣ Boosted by encouraging data from China. China’s industrial production gained 6.9% year-on-year in September, the sixth straight month of growth and the fastest since December 2019, while retail trade rose by 3.3%, also the strongest gain so far this year.
🇯🇵 JPY – BEARISH
1️⃣ Demand for the safe-haven Yen eased after US House Speaker Nancy Pelosi set a Tuesday deadline for the White House to agree on further fiscal stimulus.
2️⃣ Bank of Japan Governor Haruhiko Kuroda said on Sunday there was no need to change the central bank’s inflation target or forward guidance, noting that the Japanese economy was likely to follow an improving trend though risks were skewed to the downside due to uncertainty regarding the fallout from COVID-19.
3️⃣ Japan recorded a trade surplus of JPY 674.98 billion in September of 2020, compared with a JPY 129.07 billion deficit a year earlier and market expectations of a JPY 989.8 billion surplus.
🇨🇭 CHF – BULLISH
1️⃣ Traders continue to worry over Covid-19 recession as cases across the globe continue to surge, along with more restrictions and as three coronavirus treatment trials paused for safety.
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