DXY narrows gap on cycle highs ahead of the...>

FOREX: DXY narrows gap on cycle highs ahead of the Fed

-While oil-tied currencies were the best performers, the greenback wasn't far

behind Monday as widespread weakness in EUR and GBP fuelled gains for the DXY.

The USD index is now just 0.75% shy of cycle highs printed on Sep 3.

-The volatile oil price held its gains for much of the session as Saudi Arabia

confirmed that Iranian weaponry was used in the attacks against its oil

installations, which supported NOK and CAD further throughout the trading day.

-A less-than-harmonious press conference was held with the Luxembourg PM after

his UK counterpart refused to join him due to noisy protestors. The Luxembourg

PM struck a somewhat hostile tone, stating that the old Brexit deal is the only

solution on the table, adding that Luxembourg will not do another extension for

the sake of it. This pressured GBP toward the bottom of the G10 pile Monday,

although Friday's lows remain unchallenged so far.

-RBA minutes, German ZEW survey and US industrial production data are the

calendar highlights Tuesday. There are a number of ECB speakers due, including

Villeroy, Lane and Coeure.