Risk Sentiment Sours Early On

Some risk off flows seen in early Asia, NZD is bottom of the G10 pile early on with AUD not far behind. The greenback has found some support from safe haven flows after Goldman Sachs downgraded US growth forecasts over the weekend while equity markets have been pressured lower.

• Headline flow and liquidity are expected to be thin in the region with South Korea and Taiwan both observing market holiday's. There are several key risk events to look forward to later in the week including the BoK and MAS rate announcements, Singapore Q3 GDP, Australian labour market data and trade figures from China.
• Elsewhere GBP has shown little reaction to hawkish comments from BOE MPC member Saunders in an interview in the Telegraph published on Saturday evening. Saunders said "markets have priced in over the last few months an earlier rise in Bank rate than previously and I think that's appropriate."
• In the US Columbus day is expected to keep things quiet, further down the line paticipants can look forward to UK jobs data, the German ZEW survey, US CPI/PPI and inflation as well as FOMC minutes and the beginning of Q3 US corporate earnings season.