Dollar Defensive Ahead of Debate

The USD fell Tuesday, with the greenback moderating some of the recent gains ahead of the first Presidential debate due after markets close in Cleveland, Ohio. Elsewhere, GBP initially traded well on Bloomberg reports that the UK had sent a number of draft trade deals to the EU in an effort to break the deadlock between negotiators. This GBP upside reversed into the US close, however, with GBP only mid-table after the month-end WMR fix.

Oil tumbled Tuesday, falling close to 4% at some points of the session as traders cited expectations of a subdued demand outlook, but some attention was also paid to comments from Glencore's Chairman, who said he sees a consistent US energy policy under Biden, which would mean keeping the shale oil taps turned on in the coming years. This sapped some of the strength from commodity-tied currencies, with CAD underperforming most others.

China's September PMIs cross Wednesday, with both the manufacturing and services sectors seen growing on the month. German unemployment rate data, September ADP employment change and Canadian monthly GDP data also crosses. Central bank speak continues, with ECB's Lagarde & Lane, BoE's Haldane and Fed's Kashkari, Bowman and Bullard all on the docket.