Renewed US-China trade tensions could shake global markets as China threatens tariffs on US goods.

The EURUSD gave up most of the gains it made on Friday after opening at $1.18525. The pair ticked up to a high of $1.18597 early but then declined for most of the day, hitting a low of $1.18024 mid-session. It has remained near those lows and is now trading at $1.18063. The GBPUSD started the week at $1.30555 and slid to lows of $1.29917 mid-session. It bounced off that low and climbed to a high of $1.30747 three hours later. Those gains were given up just as quick in late trading and the pound is now trading at $1.30152.

Indices were hammered overnight as trade tensions flared up again ahead of the US election. The Dow opened the week at 28,224.43 and edged up to a high of 28,253.82 during the first hour of the trading session. It was largely all one-way from there as the Dow tumbled to a low of 27,361.40. It has rebounded off those lows and is now trading at 27,667.30. The Dax fell into line and followed the Dow, sinking into a sea of red. The German index began the week at a high of 12,614.98 and plummeted to lows of 12,085.46 late in the day before closing at 12,204.40.

This week is shaping up as one where we could see plenty of volatility with the US election campaign entering its final week, the drawn-out stimulus bill stalling and renewed US-China trade tensions. In amongst all that, there is still some economic data to be released. However, data this close to an election becomes less important as two vastly different economic agendas proposed by both candidates takes centre stage.

Data published today includes:

Japan – BoJ Core CPI

UK – CBI Realised Sales

Australia – RBA Assistant Governors Guy Debelle and Michele Bullock speak

Europe – European Private Loans and M3 Money Supply, Spanish Unemployment Rate

US – Durable & Core Durable Goods Orders, CB Consumer Confidence, HPI, S&P/CS Composite-20 HPI

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