From Marc Chandler at Bannockburn Global Forex, October 31:
Overview: After extending this week's rally yesterday, the US dollar is consolidating yesterday's gains in what appears to be favorable price action. The pullback from greenback's best level has been shallow. The US struck several trade deals this week, and secured a trade truce with China, even if many are skeptical of its longevity, and the Federal Reserve pushed against a December cut, and the futures market has reduced the odds to about 2/3 from near certainty. Emerging market currencies are mixed, but this week's highlights include the PBOC setting the dollar's fix at a new low since October on Wednesday before steadying it in the last two sessions and the (3.6%) recovery of the Argentine peso following last Sunday's election.
The Nikkei extended its weekly advance today. The 2.1% gain today brings the weekly rise to 6.3%. Most of the other large equity markets in the region but South Korea's Kospi weakened today. Yet, the MSCI Asia Pacific index is closing higher on the week and is securing its seventh consecutive monthly advance. Europe's Stoxx 600 is weaker for the fourth consecutive session, which matches its longest decline since June. Still, it is poised to settle higher for the fourth consecutive month. Helped by Amazon and Apple, US index futures are trading higher after yesterday's heavier today. The S&P 500 and Nasdaq will settle higher for the sixth and seventh consecutive months, respectively. European and US 10-year benchmark yields are slightly firmer today. Near 4.10%, the 10-year US Treasury yield is up around 12 bp this week, the most among the G10 countries. Gold is trading heavier, and barring a significant recovery, will settle lower in back-to-back weeks for the first time since July. December WTI is hovering near $60 and is off about 2% this week....
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