Greenback Settling Higher Post-Debate

Equity markets trade weaker following the first Presidential debate, with the e-mini S&P shedding just over 30 points ahead of the NY crossover to narrow the gap with Monday's low at 3,287.50. With equities slipping, the greenback and haven currencies have been in demand, resulting in the USD index bouncing around 0.4% from the overnight lows and keeping most major pairs under some pressure.

GBP saw a little support from comments from BoE's Haldane, who talked down further the prospect of imminent negative rates by stating the work preparatory work is likely to take months (as trailed in an MNI exclusive late yesterday). EUR/GBP inched off highs of 0.9157 to hit new intraday lows.

Elsewhere, risk aversion pervades, with JPY the strongest in G10 and commodity- and high beta currencies on the backfoot. Yesterday's drop in oil prices continues to sap the NOK, which is the weakest so far.

Focus turns to Canadian & US GDP data, the September MNI Chicago PMI report as well as scheduled speeches from ECB's Lane, Fed's Kashari, Bowman and Bullard.