USD

• Treading water. US equities consolidated. Yields generally ticked up. EUR & JPY softer. AUD & NZD unwind some of the falls from yesterday.• US politics. US election less than 2 weeks away. Odds of a Trump/Republican win on the rise. We don’t think the USD is fully factoring this in.• Macro events. Bank of Canada expected to cut rates by 50bps tonight. RBNZ Gov. Orr speaks in the morning. Global PMIs also due tomorrow. Most major markets have been in a bit of a holding pattern over the past few sessions given the lack of fresh top tier economic...

• Consolidation. Quiet end to last week. US stocks hit another record. USD drifted back a little. AUD hovering above its ~6-month average.• US election. A relative quiet calendar means more focus could be on the US election. Former Pres. Trump ahead in the polls in several ‘swing states’.• Event radar. Global PMIs due this week. Bank of Canada expected to cut rates again. Several key central bankers scheduled to speak. A relatively quiet end to last week across markets. Equities remain firm with the US stockmarket extending its record run. The S&P500 (+0.4%), which hit yet another record high,...

• Divergence. European equities rose, while the S&P500 consolidated. US yields increased. EUR softer. Despite a firmer USD the AUD edged up.• Macro signals. ECB cut rates again. More easing expected. US retail sales stronger than anticipated. This & US election risks supported the USD.• AU jobs. AUD outperformed after the AU employment report was stronger than projected. RBA on a different path to its peers. China data due today. Economic divergence between the Eurozone and US was on show once again overnight. As anticipated the European Central Bank cut interest rates by 25bps, the third move this easing cycle....