It was a bad day for US equities, a slightly less uncomfortable one for the USD. It strengthened by 0.2% against the embattled EUR and lost 0.3% to the GBP. The Veterans' Day holiday meant there were no US economic data and there were precious few from anywhere else either. San Francisco Fed president Mary Daly said in an interview "It wouldn't be surprising to me that we would need to go up again [with the funds rate] in December and at least a couple of times next year": She later "clarified" her position, telling other reporters that she is not necessarily set on a December rate hike.
As the deadline drew close for Italy's government to present its revised budget for EU approval, the EUR struggled. The word from Rome is that the coalition will not budge on its plan to run a 2.4% deficit in 2019: the two parties - Lega and 5Star - pledged in their election campaigns to lower taxes and increase spending and they intend to deliver on their promises. Assuming no back-down by the end of today, a lengthy review process will ensue, possibly leading to the imposition of a fine.
Economic statistics from Canada were no more numerous than from elsewhere. The only obvious factor in play for the CAD was oil prices, with WTI falling 3.7%. Its decline was more painful to the NOK than to the CAD, which lost just 0.2% to the USD. No significant Canadian data scheduled until Thursday's ADP employment change.
Following the punishment it took on Friday and during the early European session yesterday the GBP recovered some of its poise, leaving the USD 0.3% lower on the day. To an extent, the modest recovery was a correction of what had gone before. There was also help, though, from another story about an imminent Brexit deal with the EU. Although Downing Street said it should be taken "with a bucket of salt", the story provided a little light relief after the doom and gloom that had attended the GBP over the weekend. There was also help from figures this morning which showed wages growth accelerating to 3.2% in September.
It was another day of no net change for the JPY, as it covered a range of just half a yen. There were no Japanese economic statistics and no word from the Bank of Japan. Tonight's gross domestic product data for the third quarter might generate some direction but it cannot be guaranteed.