EUO

China's economy expanded by 2.7% in Q3, a little below the Bloomberg survey median forecast of 3.3%, and Q2 growth was revised to 11.7% from 11.5%.The UK has been struck by a resurging virus, the lack of progress with EU trade talks, and the pre-weekend downgrade by Moody's.In an otherwise light calendar today, six Fed officials speak. These include Chair Powell at an IMF-sponsored discussion of cross-border payments and Vice-Chair Clarida on the economic outlook.Oil prices have recovered from their April lows but have been moving broadly sideways for three-four months.

New measures being taken to curb the spread of COVID-19 infections in the euro area will increase uncertainty for both companies and families, said European Central Bank President Christine Lagarde

The US dollar rose against nearly all the major currencies last week. The yen was the sole exception.Of the majors, the Australian dollar suffered more than a 2% decline following the strongest signals to date that that Reserve Bank of Australia will do more to support the economy.However, it is still a question of precisely what it will do.

Led by a 2% drop in Hong Kong, Asia-Pacific equities tumbled, with the exception of Australia.The Dow Jones Stoxx 600 is off for a third day, but the nearly 2.2% decline is the largest drop since September 21.US shares are also lower.The dollar is gaining across the board.The Antipodeans and Scandis are the weakest. Even the yen is softer.

EUR/NZD has been consolidating over the past few weeks. The euro remains stronger against the U.S. dollar this year, as does the New Zealand dollar.However, while EUR has found appeal as an even closer competitor to USD (as a world reserve currency), NZD is exposed to plenty of risks.Tourism is a significant component of NZ GDP and employment. As a second wave of COVID-19 drags on, the NZ economy is likely to struggle.Further, a OECD PPP model and a separate real yield calculation both support a stronger EUR/NZD exchange rate.

In China, the September surplus fell to $37 bln from almost $59 bln. The median forecast in the Bloomberg survey was for a $60 bln surplus.European stocks are struggling a bit, and the consolidative tone is threatening to end the three-day advance.The US reports September CPI. The headline rate is expected to tick up to 1.4% from 1.3% in August.

As a recent standout in currency markets, the Invesco CurrencyShares Euro Trust ETF has gained nearly 10% since March 20th, 2020.But these types of short-term gains can also have their consequences, and the ECB might be forced to delay normalization in interest rate policy.Since rising currency valuations have made it much more difficult for European export companies to remain competitive in global markets, rising market valuations in FXE look unsustainable.

Chinese markets re-opened with a bang. Shanghai led the Asia Pacific bourses higher with a 1.7% gain, and the onshore yuan rose 1.1%.Gold has rallied more than 1% today to about $1916, putting it within striking distance of the week's high set on October 6 near $1921.The US economic calendar is light, featuring the final wholesales inventory report for August and the Fed's Barkin speaks to a regional Chamber of Commerce before the equity market opens.