The EUR/USD declined to one week low as disappointing Eurozone manufacturing data reflected the consequences of US trade tariffs.
The British pound decreased to a ten day low following softer than expected UK inflation data, strengthening market expectations that the Bank of England could cut interest rates again this year.
The USD/JPY rose to a two week peak after Japan’s new Prime Minister took office amid expectations that the Bank of Japan will pause rate hikes amid caution from the government.
Gold prices pulled back from all time highs as traders decided to book some profits. The precious metal was pressured by easing US – China trade tensions after the White House confirmed a meeting between Presidents Trump and Xi of China will take place on October 30th.
US S&P 500 stocks climbed as broadly positive earnings results from companies like Intel encouraged positive sentiment. Friday’s lower than expected US inflation data also boosted prices.
Oil prices bounced back after new US sanctions on Russian oil majors Lukoil and Rosneft, increased concerns about tightening global supply. The EU also implemented their latest round of sanctions against Russian energy, while falling US inventories suggested that US oil demand is rising again.