The foreign exchange market saw a stronger Dollar amidst subdued trading activity due to the US market holiday. Dollar bulls took advantage of thinner liquidity to push the greenback higher, supported by the anticipation of further interest rate cuts from the ECB. The lack of clarity surrounding China’s fiscal stimulus weighed on the Aussie and Kiwi.
Attention is also focused on the UK, where key economic releases are scheduled for the week. Market participants closely watch upcoming employment and wage growth data, followed by CPI and retail sales figures. These indicators will inform expectations regarding potential rate cuts from the Bank of England (BoE), which is facing internal disagreements over its approach to monetary policy in response to a slowing economy.
China's export and import data for September showed weaker-than-expected trade performance. Exports grew by 2.4% year over year, and imports increased by 0.3% year over year. China's trade surplus narrowed to USD 81.7B.
Fed Governor Christopher Waller acknowledged that recent economic data is mixed but asserted the US economy is on “solid footing.” He highlighted strong employment levels and progress in inflation, despite occasional setbacks.


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