No Change in Market Trends on Monday

Later today, the New York Empire State Manufacturing Index for October is expected to decline further, while the Bank of Canada Business Outlook Survey will also be released, likely influencing the USDCAD pair.

COVID is still a problem in China

President Xi Jinping stated that there are no plans to change the country’s zero-COVID policy, which caused the Chinese Yuan to decline by 0.1% and nearly cross the 7.2 level versus the dollar.

The policy is at the root of China’s ongoing economic slump, which has resulted in several harsh lockdowns this year.

However, Xi also pledged further stimulus measures to assist economic development in the upcoming months, limiting Yuan’s losses so far.

UK issues remain

Elsewhere, after the initial economic plan proposed by Prime Minister Liz Truss and former Chancellor Kwasi Kwarteng roiled financial markets, the new British Finance Minister Jeremy Hunt will outline tax and spending measures later Monday, two weeks sooner than originally planned.

On Monday afternoon, the UK chancellor will discuss a medium-term fiscal strategy while tory politicians plot to remove UK Prime Minister Liz Truss’ administration over the weekend. In light of reports that up to 100 letters of no-confidence have been sent to Sir Graham Brady, head of the 1922 Committee on the backbenches, a group of senior Tory supporters of Rishi Sunak intends to gather on Monday night for dinner hosted by the former Treasury minister Mel Stride, according to the Guardian.

Furthermore, without the help of the Bank of England’s emergency bond-buying program, which concluded on Friday, trading in British government bonds will begin again on Monday.