The yen outperformed its G-10 peers as the risk tone briefly soured during the early afternoon in New York amid weakness in bank shares and lower oil prices.

The dollar index edged up about 0.1% with the greenback gaining against most counterparts.

The odds of a 50 basis point Fed cut next week rose to 33%.

The euro remained on the back foot after German CPI fell to its lowest level in three years and as German auto shares slumped.
The ECB meets Thursday.

Bank of Canada Governor Tiff Macklem said global trade disruptions could make it harder for the central bank to consistently meet its 2% inflation target.

Focus is on a U.S. presidential debate Tuesday evening and CPI report Wednesday.

U.S.
Treasury yields eased about 4-7bp across maturities in a bond rally led by the front end, which steepened the 2s-10s curve nearly 1.24bp, according to LSEG data.

By New York afternoon trade, the S&P 500 was up 0.31%.

WTI tumbled 4.37% after OPEC lowered its forecast for global oil demand growth in 2024.

Copper slipped 0.88% amid broadly lower metals prices.

Gold rose 0.34% amid a bid for havens and lower Treasury yields.

Heading toward the close: EUR/USD -0.07%, USD/JPY -0.64%, GBP/USD +0.07%, AUD/USD -0.04%, DXY +0.07%, EUR/JPY -0.75%, GBP/JPY -0.22%, AUD/JPY -0.66%.

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