An upbeat mood stemming from US fiscal stimulus hopes and encouraging Chinese data saw the US Dollar continue to ease down from a two month high.
China’s factory profits increased for a 4th consecutive month pointing to the economic rebound picking up momentum. Furthermore, on Friday, US Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi consented to restart formal talks on a new fiscal stimulus package.
With attention now shifting to the US Presidential election debate this Tuesday investors are preferring not to take any buy positions on the US Dollar.
Stocks in Asia traded higher whilst the US stock futures extended gains into a third day on Monday.
Elsewhere, the US District Court stopped the Trump administration’s ban on TikTok downloads. US President Trump also brushed off the NY Times’ claims that Trump’s tax returns showed deep losses and were evidence of income tax avoidance, as fake news.
The upbeat mood in the market saw AUD/USD retake 0.7050, extending gains from Friday’s lows. The kiwi retook 0.6550 in a similar pattern. New Zealand PM Jacinda Ardern commented that certain travel bubbles with some Australian states said could restart before Christmas. USD/JPY dipped to 105.50, as the Yen was lifted by hopes of additional Japanese stimulus and subdued Treasury yields.
EUR/USD steadied after falling to 1.1600. Although the sellers retain control given the rising coronavirus cases and tightening restrictions in Euro area economies. European Central Bank (ECB) policymakers’ anxieties over the strength of the common currency also weigh on the currency. President Christine Lagarde’s is due to speak later on Monday.
GBP/USD rebounded to 1.2800 on Brexit optimism. British officials are hopeful that a post-Brexit transition trade deal with the European Union (EU) will be achieved.The UK Cabinet Minister Michel Gove will visit Brussels before the ninth round of trade talks begin this Tuesday.
Gold was muted around $1860 prior to the live election debate and US non-farm payrolls. WTI slid 1$, to trade under the $40 level amid oil demand recovery concerns.
