Dollar dilemma as Trump crushes deal hopes....>

FOREX: Dollar dilemma as Trump crushes deal hopes

-The greenback was among the poorest performers Tuesday, dragging the USD index

further from the multi-month highs printed on Friday, as the US President upped

the ante in the trade spat with China. In a speech in London, Trump talked up

the possibility of the US waiting until after the 2020 Presidential elections as

a more opportune time to strike a deal. This, twinned with confirmation that the

US will go ahead with Dec15 tariffs, worked against the greenback as Treasury

yields folded lower and US equity markets had a torrid session (the S&P traded

lower by as much as 1.4%) on heavy volume.

-At the other end of the table, GBP trades well as polling continues to suggest

the UK election will see a Conservative majority. Betting markets have echoed

this sentiment, with such an outcome now a 2/3 probability. GBP/USD traded north

of $1.30 for the first time since late October.

-The Bank of Canada rate decision, Australian Q3 GDP, US ADP employment change

and ISM non-manufacturing data are all due Wednesday. Speeches from Fed's

Quarles and ECB's Villeroy, Visco, de Cos and Makhlouf are also on the docket.