FX Update: The dollar traded generally firmer
FX Update: The dollar traded generally firmer, up nearly 0.5% versus the yen, at 103.35, as of the early European PM session, and 0.3% for the better against the euro, with EUR-USD at 1.1166. Markets appears to be looking at the U.S. jobs report of Friday in a more favourable light. Our post-employment survey of Fed watchers found that while the report wasn't great, it was seen as still sufficiently strong to keep a Fed rate hike in play. One respondent forecast a 25 bp as soon as the FOMC in November, but all expected a tightening to occur at the December 13-14 policy meeting. The Mexican Peso and Canadian dollar outperformed, showing net 1.7% and 0.3% gains versus the U.S. dollar, respectively, suggesting that the forex market thinks that Trumps odds of wining the presidential election next month in the U.S. have waned following weekend developments. Thin conditions have prevailed so far today amid holidays in Japan and Canada, and a partial holiday in the U.S. (Treasury markets and Federal Reserve closed, but Wall Street open).