Chinese markets came back from a bank holiday, with last night’s HSBC/Markit services PMI showing a modest softening to 52.4 (from 52.8). US government shut-down negotiations are ongoing, leaving markets trading sideways as we wait for the political crisis to be resolved. Despite the US centric uncertainty, LATAM FX have rebounded towards the bottom of their near term ranges, as the USD opens broadly softer. On the Fed front, we have two Fed speakers in the pipeline (Ploser and Pianalto), while earnings season is set to kick off. Our G10 FX strategy published an update to their monthly FX views.
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Scotiabank