Things took a dovish turn following comments from New York Fed President John Williams on Friday, who said that a rate cut remains a possibility. Fed Governor Christopher Waller also continues to advocate for additional Fed easing in December – a stance also echoed by San Francisco Fed President Mary Daly amid softness in the jobs market.
I think it is important to highlight that, although Daly is not a current voting member, I do not recall a time when she has publicly pushed back against Fed Chair Jerome Powell.
Benefitting from the bid in risk yesterday were Cryptocurrencies, with Bitcoin, Ethereum, Ripple, and Litecoin all on the front foot versus the USD by 4.4%, 7.2%, 8.7%, and 4.2%, respectively.
In the FX space, bids and offers were largely even for the USD – printing a third consecutive daily indecision candle on the USD Index – while US Treasury yields were lower across the curve; the benchmark 10-year yield fell to just shy of 4.00%.
Meanwhile, Spot Gold and Oil versus the buck were up by 1.7% and 1.6%, respectively.
US Data in Focus
The day ahead includes the US September PPI inflation figures and retail sales data.
