The dollar remain tall vs the basket of majors in mid-Monday’s trading, barely affected from weekend’s shock on FBI’s probe into presidential candidate’s Hillary Clinton private email. New spin in the presidential campaign that happens just week ahead of elections undermined Clinton’s position on one side and boosted position of her rival Donald Trump.
However, dollar managed to recover the biggest part of last Friday’s losses, triggered by FBI’s announcement about the investigation.

The dollar index stood around 98.60 at the beginning of the US session, showing no significant reaction on downbeat US data. Chicago PMI undershoot forecast in October, coming at 50.6, well below 54.0 consensus and 54.2 in September. This is the lowest level since May, but it is still above 50 threshold for the fifth month, though this time on the brink.

The euro is in steady descend from last Friday’s / Asian opening high at 1.0990 and hit session low at 1.0937, down 0.43% until now, pressured by German Retail Sales that fell at the fastest rate in two years in September, adding to concerns about the outlook for the Eurozone’s largest economy.

In addition, inflation in EU came in line with expectations, but core CPI fell below expectations in October and holding near cycle low.

Sterling remains in red on Monday, down 0.22% since opening and reversing so far over 61.8% of last Friday’s 100-pips rally that peaked at 1.2212. From the technical point of view, British pound remains offered and near-term risk is shifted lower.

The dollar got stuck at 105.00 zone against yen, which was reached on recovery rally from Friday’s fall low at 104.45. The greenback managed to recover over 50% of Friday’s losses and rallied higher despite Monday’s Asian opening with slight gap-lower.

The pair maintains overall bullish bias, supported by broader strength of the US dollar and is on track for strong bullish end of the month.

Crude oil was among the top losers in Europe and extends weakness into American session. US Crude oil fell 1.16% on Monday and hit session low at $47.72, on fresh extension of broader pullback from fresh recovery peak at $52.21, posted on 19 Oct.
The oil price came under renewed pressure after non-OPEC producers made no specific commitment to join the OPEC in limiting oil output levels to prop up prices, on meeting in Vienna on Saturday.

Spot gold remains in red on Monday and extends pullback from Friday’s fresh recovery high at $1284, to crack strong support at $1273, which would soften near-term outlook, as technical studies see risk of recent rally stall and scope for fresh weakness.

European stocks were at the back foot on Monday, maintaining negative sentiment from last Friday. Britain’s FTSE100 index was down 0.14%; German DAX fell 0.37%, while French CAC40 registered losses of 0.16% on Monday’s trading.

Wall Street edged up after Monday’s opening after political noise was set against recent M&A activities. The Dow Jones was 0.15% up after opening bell; S&P500 gained 0.17% while Nasdaq was up 0.30%., Market Analysis