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CNY Surges as China Returns From Golden Week

FOREX

The end of China's Golden Week holidays saw firm demand for the CNY, which rushed to catch up with gains seen in the CNH over the past week or so. This was compounded by a lower-than-expected USD/CNY fix from the PBoC, which signaled no urgency among policymakers to slow or halt the current currency appreciation.

The EUR enjoyed a mid-morning rally, prompting EUR/USD to rally through the $1.18 handle for the first time since last week to turn focus to Oct6 high at $1.1808. Brexit talks continue today, but EU negotiator Barnier returns to Brussels after meeting his UK counterpart this morning.

Antipodean FX are the strongest in G10, with GBP, USD the worst off.

The Canadian jobs report is the data highlight Friday, with Canada seen adding 150,000 jobs across September to trim the unemployment rate by another 0.4 ppts. Fed's Barkin and BoE's Haldane are due to speak.

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