What is going on out there? - ANZ

Analysts at ANZ explained that the USD retained its firmer tone as expectations of a December Fed hike and greater confidence in a Clinton victory continued to lend support and Sterling’s slide continued unabated as the government failed to offer any clarity on how it proposes to steer the country through negotiations on exiting the EU.

Key Quotes:

"The approach of the Italian constitutional referendum and ongoing prospect of an extension of QE from the ECB weighed on the euro. Essentially, there is a general perception that the US is pulling ahead again in the political, business and monetary cycles and that is lending support to the USD.

Oil again gave back some ground following its positive reaction to Monday’s reminder of future supply control. WTI fell 0.9% to USD50.8/bbl.

That, along with a slow start to reported earnings for Q3 for several companies, helped to drag equity markets lower. At the time of writing, the S&P 500 was off 1.3% and the major European bourses had closed 0.4- 0.6% lower.

The yield on the US 10yr note rose to 1.76% and the theme of curve steepening remains prominent for now."