Overnight FX News:

Investors were left confused as U.S. Tsy clarified Saturday that de-listing Chinese firms from U.S. bourses is not currently on the table, but failed to rule out othe rmeasures limiting portfolio flows to China, mentioned in Friday's BBG source report. The yuan ticked higher on the communique but gradually pulled back as initial enthusiasm waned. Nonetheless, a stronger than exp. PBoC fix and a beat in China's Caixin manufacturing PMI provided fresh support to Chinese currency before the country takes a week off for national holidays.

Yuan strength failed to prop up the NZD and AUD. NZD sold-off across the board, with NZD/USD nearing its Year-to-Date low, as ANZ business confidence index hit an 11-years low. AUD was a touch softer, while CAD topped the G10 pile.  

KRW recovered after an early dip on a miss in S. Korea's factory production.  

German docket is quite heavy today, with jobs numbers, retail sales and flash CPI all due. EZ unemployment, flash Italian CPI and U.S. Chicago PMI also hit today. Riksbank's Ohlsson is the sole central bank speaker.

FX relevant Economic Data

Monday marks a busy start of the week with the highlights in Europe being the publication of German labour market statistics at 0855 BST and EZ unemployment figures at 1000 BST. In the US the release of the Chicago PMI will be closely watched at 1445 BST.

FX Volatility Chart