USD, JPY Lower Ahead of First Presidential Debate

JPY is weaker across the board despite general weakness in equities across US and European futures. USD/JPY ran higher to touch new weekly highs of Y105.73 before fading, rising despite the BoJ outlining their plan to cut their October floating-rate bond purchase quantity to Y50bln (although the other key bond zone purchase quantities were unchanged).

Sterling trades well for a second session, although gains are still short of yesterday's highs, as The Times reported optimistically about the prospects of material progress being made in this week's trade talks. The report quoted EU staffers as saying they are ready to work on a legal agreement, although other news outlets have cited sources calling for caution this week. GBP/USD topped out at 1.2888 earlier this morning and is yet to make a test on the 1.29 handle.

AUD, NZD are the strongest in G10, with JPY and greenback trading on the backfoot.

US trade balance and September consumer confidence data are the highlights Tuesday. The speaker schedule sees Fed's WIlliams, Harker, Clarida and Quarles as well as BoE governor Bailey. The first Presidential debate kicks off after markets close, with Biden and Trump taking the stage at 2100ET/0200BST.