Risk sentiment soured alongside Italian.......>

FOREX: Risk sentiment soured alongside Italian assets from the get-go on

Tuesday, with Italy's 10-Year yield rising sharply to touch the highest levels

observed since early 2014. Rebuttals from Brussels, a still disunited front

among Italian politicians and the extension of uncertainty surrounding the

country's fiscal deficit targets knocked risk appetite, fuelling gains for the

JPY & CHF. Despite a modest recovery ahead of the U.S. close, EUR also slipped

against most, but recovered from worst levels.

- Both NZD & AUD continued to trim some of the gains seen across September,

keeping both currencies within striking distance of the YTD lows against the

USD, with the effects of risk aversion & a tense U.S. China trade situation

outweighing firm commodities prices.

- Global services & composite PMIs, U.S. ADP Employment data & the ISM

non-manufacturing survey provide the data highlights Wednesday, while a litany

of Fed speakers, including Chair Powell, as well as an address from ECB's Mersch

makes up the speaker schedule.