EUR/USD keeps the red near 1.1110 post-ZEW
The shared currency remains entrenched in the negative territory on Tuesday, with EUR/USD now navigating the 1.1115/10 band, or session lows.Spot remained apathetic today despite the ZEW Survey has surprised markets to the upside for the current month. In fact, German/EMU Economic Sentiment has improved above consensus to 6.2 and 12.3, respectively. German Current Situation has followed suit, up to 59.5 vs. September?s 55.1.In the meantime, the rally in the greenback remains unabated so far this week, trading in fresh 3-month highs above 97.00 the figure and always bolstered by rising expectations of a rate hike by the Fed at its December meeting.USD has also found some support in comments by Chicago Fed C.Evans at his speech in Sydney, where he advocated for a gradual tightening albeit he admitted that policy ?may well be changing soon?.Ahead in the NA session, the Fed?s Labor Market Conditions Index is only due along with the speech by Minneapolis Fed N.Kashkari (2017 voter, neutral).The pair is now losing 0.24% at 1.1111 and a break below 1.1101 (low Oct.7) would target 1.1076 (2014-2016 support line) en route to 1.1043 (low Aug.5). On the other hand, the next up barrier is located at 1.1173 (200-day sma) followed by 1.1202 955-day sma) and finally 1.1248 (resistance line off 2016 high).

GBP/USD finds support from positive FTSE, back at 1.2300
The offered tone behind the GBP weakened a bit over the last hour, allowing a minor-recovery in GBP/USD back to 1.23 handle.The cable maintains the offered in the European session, although trims losses as the bulls find some respite from higher London stocks.However, any recovery in the GBP/USD pair is likely to be short-lived as the demand for the US dollar remains on the rise across the board, largely backed by a risk-rally seen in the US treasury yields.Meanwhile the US dollar index rises 0.30% to 97.20 levels, while the GBP/USD pair recovers to 1.2300, still down -0.50% on the day.Amid a lack of fresh fundamental triggers from the UK docket today, the cable will remain at the mercy of the USD dynamics, against the backdrop of looming Hard-Brexit concerns.The pair finds immediate resistances placed at 1.2386 (daily pivot), 1.2433 (5-DMA) and 1.2500 (round number). While supports are lined up at 1.2279 (daily low) and 1.2230 (key support).

Higher oil price reinforcing USD/JPY?s upward momentum - MUFG
Lee Hardman, Currency Analyst at MUFG, notes that over the last week USD/JPY has traded above the top of the Ichimoku cloud for the longest period since the down trend started late last year signalling that downward momentum has eased in the near-term.?With risks becoming more balanced for the pair, upside could extend further towards if key resistance level at the 105.00-level is broken rising towards the 200-day moving average at just above the 108.00-level.The ongoing rebound in the price of crude oil is weighing modestly on the yen as well in the near-term both through weakening Japan?s terms of trade and supporting higher yields overseas. The recent pick-up in inflation expectations is a negative development for the yen. The price of crude oil has extended its rebound over the last week rising back above USD50/barrel. The agreement reached last month by OPEC members to begin cutting production is helping to offer more support for the price of oil in the near-term.Recent comments from Saudi Arabia and Russia that they ready to work together on limiting production has increased the likelihood that the agreed production cut will be more fully implemented. The bullish sentiment in the oil market was further encouraged by comments from Saudi Arabia?s Energy and Industry Minister Khalid Al-Falih who stated that he was ?optimistic? that there will be a deal that may lift the price of oil as high as USD60/barrel by year end.Our own assumptions are not as optimistic expecting a more gradual recovery in the price of oil towards USD60/barrel by the end of next year. A quicker rebound in the price of oil would encourage a pick-up in non-OPEC oil production challenging the sustainability of higher oil prices beyond the near-term. We may need to switch to a flatter profile for the price of crude oil for next year if gains are more front-loaded into this year. Recent developments pose upside risks to our year end forecasts for oil related currencies such as the rouble and more modest downside risks for the yen. If the price of oil continues to extend its rebound into year-end, our forecast for USD/JPY to fall below the 100.00-level maybe delayed into next year.?

RMB: Mind the fix Deutsche Bank
Research Team at Deutsche Bank, suggests that it took the moves around Brexit for China to allow a comprehensive break of 6.60 and after resisting for slightly over a month, it finally allowed 6.70 to break after coming back from the Golden Week holidays this week.?On the face of it, the strategy hasn?t changed. Back in June, PBoC took its time passing through the full dollar move in response to Brexit around 10 trading sessions before the USD/CNY fix caught up with our model. We have seen a gap open up again this week, with the fix only passing through part of what the model would warrant. To be sure, the ~7% move lower in the TWI (CFETS basket) year to date (3%+ since just before Brexit) gives the authorities plenty of slack to accommodate moves in the dollar, or at least pace out the pass through into USDCNY. It would perhaps be easiest to conclude that this is business as usual in China FX, and that we can continue to ignore any risks from this source, like we have done for the better part of the last quarter (and arguably since March this year).This will not be the first time China would have used a holiday period to mark a shift in strategy (recall the LNY period earlier this year). The authorities have lowballed the fix on at least three occasions over the past couple of months, when the model had signaled a break of 6.70. With the G-20 out of the way, as also the SDR inclusion, and the IMF meetings over the weekend, the timing of the break cannot be ignored.

USD/CAD: Rebound capped by 5-DMA, despite weaker Oil
The USD/CAD pair staged solid comeback on Tuesday, having reversed more-than half the previous slide on the back of a broadly firmer US dollar.Currently, the USD/CAD pair rises +0.36% to 1.3222, having faced rejection at 1.3232, where 5-DMA intersects. The major is seen receding a part of today?s rebound as markets resort to profit-taking after the bulls ran into resistance located at 5-DMA.However, the major manages to keep 1.32 handle as weaker oil prices and persisting broad based US dollar strength continue to underpin the sentiment. Later today, the major will get influenced by the Canadian housing starts and US LMCI data due later in the NA session.To the upside, the next resistances are seen near 1.3282 (Sept high) and 1.3300 (round figure) and from there to 1.3350 (psychological levels). To the downside, immediate support might be located at 1.3170 (20-DMA) and below that at 1.3114 (daily S1) and at 1.3065 (50-DMA).

WTI trims gains, breaks below $51.00
Crude oil prices have now surrendered initial gains and have dragged the barrel of West Texas Intermediate back to sub-$51.00 mark.The barrel of WTI has deflated to the $51.00 neighbourhood on Tuesday after challenging 2016 tops around $51.60 on Monday.The solid context favouring the demand for the greenback keeps weighing on crude oil sentiment, although the recent deal on an output freeze at the OPEC meeting in Algiers is expected to keep occasional pullbacks in crude prices limited.Ahead in the week, the API?s weekly report is due tomorrow, followed by the weekly EIA?s report on crude inventories on Thursday and the US drilling activity figures gauged by Baker Hughes on Friday.Further news from agency Thompson/Reuters said Paris-based IEA argued this morning that crude oil markets could rebalance quicker if OPEC and Russia agree on an steep enough output cut.At the moment the barrel of WTI is losing 0.84% at $50.92 with the initial hurdle at $51.67 (2016 high Jun.6) ahead of $53.89 (high Jul.10). On the other hand, a break below $47.13 (20-day sma) would aim for $45.64 (55-day sma) and finally $42.55 (low Sep.20).

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