FX today in Asia was mainly driven by the EUR price action, as the Catalan independence referendum news revoked political uncertainties plaguing the Euro area. As a result of the EUR/USD declines below 1.18 handle, the USD caught a solid bid-wave across the board. Meanwhile, the Yen failed to benefit for solid Japanese Tankan manufacturing surveys, while the Aussie remained better offered in a tight range amid mixed Aus fundamentals, while holidays in China and Australia also dampened the sentiment.
Main topics in Asia
PBOC announces RRR cuts for some banks effective 2018
The Chinese central bank (PBOC) announced on Saturday that it will cut the Reserve Requirement Ratio (RRR) for some banks effective 2018.
Theresa May’s speech: Cabinet is agreed on Brexit approach
The UK PM Theresa May crossed the wires in early trades, discussing the Brexit strategy in a scheduled interview with BBC Television.
90% Of Catalans voted "Yes" To leave Spain – RTRS
In incredible scenes today in Spain, after a violent day at the ballot boxes:
Bank of Japan Tankan index for large manufacturers hit 10-year high
According to the Bank of Japan's [BOJ] latest Tankan survey, activity at Japan's major manufacturers grew well beyond expectations in the third quarter to the highest level in a decade.
Australia inflation expectations rise to 0.3% in September
The Melbourne Institute's 12-month gauge of inflation expectations fell to 0.3% in September, following a reading of 0.1% in the previous month.
Key Focus ahead
Heading into a brand new week in Europe, the economic calendar remains eventful, with the Euro area final manufacturing PMI reports due on the cards ahead of the UK manufacturing PMI release. Meanwhile, the Swiss retail sales and Eurozone jobless rate data will be also reported. Also, of note will be the UK Finance Minister Hammond’s speech for fresh trading impetus on the GBP.
During the NA session, again manufacturing PMI reports, this time out from Canada and the US will dominate the calendar. Besides, FOMC member Kaplan speech will be also closely eyed.
EUR/USD: will the Spain's political climate accelerate the euro's decline this week?
The euro has dipped again below the 1.18 handle after today's shocking events in Spain where the Catalan vote for a referendum was disrupted with violence by the National Police…
GBP/USD - Lead indicators favor weak UK PMI print, nears weekly 100-MA
GBP/USD was dragged lower in Asia by the common currency, which weakened in response to the Catalonia referendum news. The spot faded the spike to 1.3402 and traded at 1.3365 at press time.
The week ahead: expect transitory weakness in September’s nonfarm payroll growth - Nomura
Analysts at Nomura offered a preview of the key events for the week ahead.
The Week Ahead: RBA Decision, US and Canadian Jobs, US and UK PMI
The calendar heats up in the week ahead for the start of October and the fourth quarter with major scheduled events and releases that are highly likely to make a substantial market impact, particularly on the currency markets.
Market unanimously expects the RBA to be on hold - NAB
Analysts at National Bank of Australia (NAB) are out with their thoughts on the RBA monetary policy outcome due tomorrow, with wide expectations that the Aus central bank will maintain the status-quo.
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