FOREX SUMMARY

A calmer FX session, with the US out for Columbus day, and plenty of risk ahead this week.

• Main story this morning has been weakness continuation in the Yuan, after the the PBoC removed the reserve requirement ratio applied to FX forwards transactions.
• Making shorting Yuan cheaper for market participants and hinting that the Chinese CB isn't comfortable with the rapid Yuan gains.
• USDCNY, traded through Friday's high at 6.7327, and now at 6.7460 at the time of typing.
• G10 FX have generally been trading in tight ranges, although GBP saw better buying on the open.
• Cable tested MNI resistance at 1.3050 (printed 1.3060 high), but has since given back all of today's gains with GBPUSD at 1.3014 at the time of typing.
• Focus here remains on Brexit developments, with EU Summit at the end of the week, and Boris set to announce new lockdown measures this afternoon.
• AUDUSD recovered, despite some FM sellers reported overnight, following the POBC move, but upside could be limited today, with thinner liquidity, and worth noting 1bn of Option expiry at 0.7200.
• In EMFX, USDZAR is up 0.47%, but focus there is squarely on positioning ahead of the awaited Mid term budget on the 21st of October..