It
was a subdued day across major forex rates ahead of a week that
features speaking engagements by:

  • Federal
    Reserve Chair Powell
  • European
    Central Bank President Lagarde
  • Bank
    of England Governor Bailey
  • and
    Bank of Japan Governor Ueda

Nevertheless, we did get some items of interest including:

  • Saudi
    Arabia and Russia will extend their continue voluntary 1 million bpd
    output reductions into December – as widely expected
  • The
    Melbourne Institute headline monthly inflation gauge fell by 0.1% in
    October, the
    first month of falling prices in 14 months. While
    this data point is rarely highlighted by the RBA its not a smoking
    gun for a rate hike at tomorrow’s policy meeting (a +25bp rate hike
    is widely expected by analysts but not so much by market pricing)
  • Japan’s
    services activity (the
    Jibun Bank / S&P Global PMI)
    expanded at its
    slowest pace sor
    far this
    year in October. Its
    still in expansion, at 51.6 (from September’s 53.8) so the panic
    button has not yet been hit. The service sector has been the key
    driver of growth in Japan.
  • Bank
    of Japan Governor Ueda once again said that the BOJ will keep YCC,
    negative short-term rates intact until sustained achievement of 2%
    inflation is foreseen by the Bank
  • USD/CNH
    hit its lowest in 3 weeks
  • The
    US military confirmed that an Ohio-class submarine arrived in the
    Middle East. The location of these subs is never made public, doing
    so this time is clearly aimed at dissuading Iran from escalating its atrocities-by-proxy against Israel.