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- Hurricane Michael threatens Gulf coast
- EU to offer 'anywhere' checks in bid to break Irish border deadlock
- ECB's Knot: Overall inflation has been above our definition of price stability for several months
- Google exposed private date via Google+ and will close the service
- Savona warns no agreement with EU could spark broad financial crisis
- ECB's Villeroy: Italy's combination of growth and debt 'too unbalanced'
- Goldman Sachs turns cautious on US consumer debt
- Italy's Di Maio: Markets will eventually understand plan
- Brazilian markets cheer on Bolsonaro
Markets:
- Gold down $14 to $1188
- WTI crude down 11 cents to $74.23
- US equity markets close flat at 2885
- US bond markets closed for holiday
- EUR leads, JPY lags
It was more-lively than expected considering the holidays and in Canada and the US. The yen and US dollar were strong as New York arrived and that continued as risk aversion ramped up but later in the day the fears ebbed, stocks rebounded and the dollar and yen lost ground.
Cable fell as low as 1.3028 and was near there as New York arrived but it slowly climbed back to 1.3095 to finish the day down just 25 pips. A story on the EU offer in the Guardian helped GBP along.
The euro similarly hit 1.1460 but battled back to just shy of 1.1500 late despite a beating in Italian financials and continued selling in bonds. Italian 10 year yields rose 14 bps to 3.57%.
USD/JPY was hit by heavy selling in a fall to 112.82 and the broad theme on the day was surely yen strength. Still, it recovered to 113.10 late.
USD/CAD was a dangerous one to trade given the holidays but the market got 1.3000 and was happy to sell it in a fall down to 1.2956. Oil will be interesting in the day ahead with Hurricane Michael forming in the Caribbean and the threat of a major hurricane hitting the gulf coast on Wednesday.
The Australian dollar got up off the floor and rose to 0.7080 from 0.7040. It's poised to finish at the best levels of the day as it battles to show some signs of life.
