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No data? No problem! The U.S. dollar was able to squeeze out some gains against its peers on higher bond yields while the pound recovered slightly from its earlier selloff.

  • Canadian banks closed in observance of Remembrance Day
  • U.S. federal budget deficit at$63.2B vs. $58.2B consensus, $8B surplus previous
  • BOJ Governor Kuroda: Still a long way to go before hitting 2% inflation goal
  • Kuroda: Not easy to dispel deflationary mindset in Japan

Major Events/Reports

Focus on tax reform

Market watchers seem a tad more hopeful that U.S. lawmakers can make progress in terms of tax reform this week as U.S. President Trump took to Twitter for a few more suggestions.

The Donald is set to return from a leaders conference in Asia and would likely up the pressure on the House and Senate to work together. According to a White House aide, the President is set to give a speech to House Republicans before they vote on their version of the bill on Thursday.

U.S. bond yields recovered slightly from their earlier dip:

  • 10-year bond yield is up to 2.404% (+0.15%)
  • 5-year bond yield is up to 2.077% (+0.17%)

U.S. equities were also able to chalk up a few gains for the day:

  • Dow 30 index is up 17.49 points to 23,439.70 (+0.07%)
  • S&P 500 index is up 2.54 points to 2,584.84 (+0.10%)
  • Nasdaq is up 6.66 points to 6,757.60 (+0.10%)

Commodities in the red

Risk aversion appeared to linger in the markets for the most part of the day while crude oil had trouble sustaining its climb.

As it turned out, rising output from Uncle Sam has been keeping a lid on gains even while tensions in the Middle East threaten to curb output. Baker Hughes reported another increase in U.S. oil rig count, adding nine last week to mark its biggest weekly jump since June.

  • WTI crude oil is down to $56.72 per barrel (-0.09%)
  • Brent crude oil is down to $63.09 per barrel (-0.08%)

Major Market Mover(s):

USD

The Greenback joined its lower-yielding peers, the yen and franc, in taking advantage of risk-off vibes for the day while bulls also got their hopes up for tax reform progress.

EUR/USD retreated from a high of 1.1675 to a low of 1.1654, USD/JPY is up from 113.24 to 113.73, USD/CHF bounced to a high of .9977, and AUD/USD slid to a low of .7609.

GBP

Pound traders seemed to book profits off the currency’s slide earlier in the day as U.K. economic reports could revive gains later on.

GBP/USD bounced back to 1.3120, GBP/JPY recovered to the 149.00 levels, EUR/GBP found resistance near .8900, and GBP/CAD bounced off 1.6588 to 1.6722.

Watch Out For:

  • 12:30 am GMT: NAB Australian business confidence index
  • 2:00 am GMT: Chinese industrial production y/y (fall from 6.6% to 6.3% expected)
  • 2:00 am GMT: Chinese fixed asset investment ytd/y (decline from 7.5% to 7.3% expected)
  • 2:00 am GMT: Chinese retail sales y/y (gain from 10.3% to 10.5% expected)