USD Follows the Flow into Month-end

The greenback played catch-up with month-end flows throughout the Monday session, after initially coming under considerable selling pressure as most models pointed to USD sales into the fix. This put the USD index at fresh multi-year lows ahead of the London close, before swiftly reversing once the flow had, presumably, been absorbed.

As a result, USD swung from being the poorest performer in G10 to mid-table in US hours, leaving Scandi currencies, the JPY and EUR the softest.

GBP traded constructively, but stopped short of a broad rally as ITV political correspondent Peston wrote that current negotiations are "grounds for optimism that a compromise is within reach."

The RBA rate decision, China's Caixin manufacturing PMI and manufacturing ISM numbers for November are the highlights Tuesday. Speakers include Fed's Powell and ECB's Lagarde.