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Steadying After Trump's Fiscal Tweet

FOREX

G10 FX space has stabilised in Asia after U.S. President Trump jolted markets in NY hours tweeting that he is putting stimulus talks with the Democrats on hold until after the election, despite Fed Chair Powell's warning of the dire consequences of insufficient fiscal aid.

  • AUD outperforms at the margin, with USD & JPY struggling as e-minis have moved away from worst levels (although they remain in the red). CAD brings up the rear amid slightly softer WTI prices, even as Canadian lawmakers passed the government's economic plan, averting a snap election.
  • Chinese markets remain shut for national holidays, which will continue to limit activity in the region.
  • FOMC Sep MonPol meeting minutes, German and Norwegian industrial output figures, Italian retail sales, French trade balance take focus from here. Fed's Williams, Kashkari, Bostic, Rosengren and Evans, ECB's Lagarde and Villeroy, Riksbank's Skingsley and Norges Bank's Bache are set to speak.

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