[MARKET ANALYSIS] Dollar remains firmer amid ongoing rate hike expectations and despite the decline in oil

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Hong Kong Finance Secretary Chan affirms no intention to change HKD peg to USD, adds Hong Kong will remain an open and free economy, while fixed income will be a very big part of Hong Kong

[MARKET ANALYSIS] Dollar remains firmer amid ongoing rate hike expectations and despite the decline in oil

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[MARKET ANALYSIS] T-note futures are mildly higher after the recent decline in oil prices, while supply looms

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DXY: +0.1%

  • Remained firmer after gaining at the start of the week as rate hike expectations held, despite the downward pressure in oil prices, with Fed's Barkin and Collins both expressing support for last week's rate hike. Nonetheless, the focus was on the UN General Assembly with US President Trump meeting with several leaders, while he announced that US officials met with the Iranian delegation, adding that the meeting went well and was very productive.

EUR/USD: -0.1%

  • Slightly softened after its recent choppy performance with little fresh drivers from the bloc, while there were comments from ECB's Nagel that rates are still in neutral territory and that they cannot exclude needing to go into mildly restrictive territory.

GBP/USD: -0.1%

  • Demand is subdued with price action confined within the 1.3300 handle, while little reaction was seen following UK PM Burnham's first-ever meeting with US President Trump, where he was said to have pushed Trump on tariffs.

USD/JPY: +0.2%

  • Extended on yesterday's intraday rebound amid a firmer dollar and the continued absence of Japanese participants, who will be returning from the holiday closures tomorrow.

Antipodeans: AUD/USD -0.2% / NZD/USD -0.3%

  • Trickled lower with headwinds amid the subdued risk appetite and weaker flash PMI data from Australia.

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