From Marc Chandler at Bannockburn Global Forex:
Flat September CPI Boosts Speculation of a BOE Rate Cut While Weighing on Sterling
Overview: The US dollar is mostly narrowly mixed among the G10 currencies. Sterling is the exception, and it is off about 0.35% after the softer than expected CPI spurred speculation of a rate cut. The 10-year Gilt yield is off seven basis points while most European bond yields are narrowly mixed, less than one basis point changed. Most emerging market currencies are also softer. The Dollar Index is rising for the fourth consecutive session. The volatility seen in gold and rare earth equities is also continuing today. Gold, which set a record high a little above $4381 on Monday, approached $4000 today to fray the 20-day moving average (~$4019) for the first time in two months. It has recovered and is trading near $4070 in the European morning, having settled near $4125 yesterday.
Equities are mostly lower, though the Asia Pacific bourses were mixed. Japanese indices themselves were mixed, while China, Hong Kong, and Taiwan markets fell. South Korea and India were higher, while profit-taking in Australis pushed the ASX 200 off its record high. Europe's Stoxx 600 is off for the first time this week and is giving back yesterday's 0.20% gain. US index futures are narrowly mixed. The US 10-year Treasury has slipped below 3.96%. Last Friday's low was near 3.93%. December WTI bottomed on Monday, a little below $56 and is now trading at a four-day high slightly above $58....
....MUCH MORE
