From Marc Chandler at Bannockburn Global Forex:
Overview: The dollar has come back bid. It is trading near session highs late in the European morning. The French crisis has not been resolved and the policy mix advocated by the new head of the LDP and soon-to-be prime minister continues to weigh on the yen. The US government remains closed, and the White House has sent mixed signals about its willingness to negotiate with the Democratic Party leaders. The Antipodeans are the weakest among the G10 currencies ahead of New Zealand's anticipated rate cut tomorrow. True to form, in a firm US dollar environment, the Canadian dollar does relatively better, and today, it is atop the G10 currencies. The greenback is at its best level in nearly seven months against the Japanese yen and is within striking distance of JPY151.00. The euro is near $1.1660. An expected drop in German factory orders is doing the single currency no favors. Most emerging market currencies are weaker, led by the central European currencies.
Holidays closed the Hong Kong, mainland China, and South Korean markets. Most of the other large equity markets in the region, but Australia rose. Europe's Stoxx 600 snapped a six-day advance yesterday and is a little softer today. US index futures are little changed. A solid 30-year JGB auction helped Japanese bonds steady today. European benchmark 10-year yields are mostly 1-2 bp firmer and the 10-year US Treasury yield is slightly higher near 4.16%. Several Fed officials speak today, including Governor Bowman who has hinted at the need for quicker rate cuts. The US sells $90 bln of six-week bills today and $58 bln three-year notes. Gold reached a new record high near $3977.50 but has seen profit-taking pare earlier gains. November WTI is trading quietly inside yesterday's range (~$61-$62.15)....
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