From Marc Chandler at Bannockburn Global Forex:
Overview: The US dollar is mostly softer against the G10 currencies and emerging market currencies. The hawkish hold by the Reserve Bank of Australia has helped lift the Australian dollar almost 0.5% to a four-day high above $0.6700. The Japanese yen is up nearly as much despite poor industrial production and retail sales data. A US federal government shutdown looks nearly inevitable at this juncture. The US also announced 10% tariffs om softwood timber and lumber, as well as a 25% tax on kitchen cabinets, vanities, and upholstered wood products. Some will take place as soon as October 14, others not until January 1. Canada is the most exposed and is already subject to 35.2% duty meant to counter alleged subsidies and unfair pricing.
Equities were mostly firmer in the Asia Pacific regions, but South Korea, Australia, and Index markets traded lower. Europe's Stoxx 600 is nursing a small loss, and US index futures are around 0.15%-0.25% lower. Note that a third of the S&P500 are in a blackout period ahead of earnings when they can no longer buy back their own shares. By mid-October, it will rise to around 80%-85%. Benchmark 10-year yields are narrowly mixed in Europe, while the 10-year US Treasury yield is off a little more than a basis point to slightly below 4.13%. Gold is reversing lower after setting a new record high of almost $3871. It has now slipping through $3800. November WTI extended yesterday's nearly 3.5% drop and is off another 1% today. It fell to $62.45 after finishing last week a little above $65.70....
....MUCH MORE
