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The US Energy Information Administration (EIA) showed today that the US crude inventories fell 1 million barrels to reach a total of 488.1 million barrels during the past week, missing analysts' forecasts of a drop by 1.9 million barrels.   The gasoline stockpiles rose 1.9 million barrels to a total of 227 million, and distillate stockpiles fell 3.8 million barrels to a total of 160.7 million.   While the American Petroleum Institute (API) showed yesterday in preliminary data that inventories rose by around 584,000 barrels during same period.

At 12:30 GMT, the Canadian economy released its reading for the retail sales index, which fell by 0.4% in August, worse than forecasts of 1%, while the index rose by 0.6% in July. This data is considered negative for the Canadian dollar.

At 12:30 GMT, the Canadian economy released its monthly reading of the consumer price index, which fell by 0.1% in September, on par with forecasts and August's reading. The CPI y/y reading rose 0.4% vs. 0.1% in the previous reading, beating forecasts of 0.3%.

The US dollar fell against a basket of major currencies on Wednesday, to deepen its losses for the fourth straight day, and hit a 7-week low, as demand slowed after progress in political talks for the US second stimulus package.   The dollar index fell 0.4% to the lowest level since September 3 at 93.15 points, after it opened at 93.04 points, and hit an intraday high of 93.07 points.   The index lost 04% yesterday, and posted its third straight daily loss, after positive developments in the talks for the second Covid-19 aid package.   The US House of Representatives spokesman Drew Hamill said on Monday that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued to narrow their differences on the aid package in a telephone conversation.   Hamill added that by the end of Tuesday there will be clarity on whether the aid bill can be passed before the November 3 presidential election.   White House chief of staff Mark Meadows stated that progress was made in the coronavirus stimulus talks, but there's still a need for more negotiations to overcome major differences about a final deal.   President Trump also said on Tuesday that he is willing to accept a large fiscal stimulus bill, despite opposition from his own Republican Party.

Euro climbed on Wednesday against the dollar for the fourth straight day to four-week highs on higher risk appetite and hopes for US stimulus.    EUR/USD rose 0.4% to 1.1870, the highest since September 21, with an intraday low at 1.1818.    The common currency rose 0.5% yesterday, the third profit in a row following positive developments in US stimulus talks.   US President Donald Trump announced he'd accept a stimulus package of $2.2 trillion, and even more than Democrats wanted, which might be considered a breakthrough in stimulus talks.    Trump said he's confident he can get the votes, both Democratic and Republican, to pass the massive Covid relief package.    The dollar index fell 0.4% on Wednesday, marking the fourth loss in a row and hitting seven-week lows at 92.68.

USD/JPY lost ground in Asian trade to October 16 lows ahead of US data and Fed speeches and amid a lack thereof from Japan.    As of 06:58 GMT, USD/JPY fell 0.18% to 105.31, with a week low at 105.26.    From the US, Federal Reserve Governor Lael Brainard will speak about the economic and monetary policy outlook at an online conference hosted by the Society of Professional Economists.   The Federal Reserve will release the Beige Book later today, which is used by the FOMC to help make their next decision on interest rates. However, it tends to produce a mild impact as the FOMC also receives 2 non-public books - the Green Book and the Blue Book - which are widely believed to be more influential to their rate decision.   Differences persist between Democrats on Republicans on US stimulus plans, while the World Health Organization reported 40.25 million global cases of the coronavirus so far, with the death toll at 1.116 million. 

The British Pound held against the US dollar on Tuesday, amid focus on the Brexit talks.   A British official said that the door is still open to a trade deal with the European Union.   While several EU officials also expressed optimism about a trade deal with London, and called for more negotiations.   The British Prime Minister Boris Johnson said on Friday that the trade talks with the EU have ended and without any change in the European position, weeks ahead of the talks deadline.   Johnson ordered his cabinet members to prepare for a no-deal Brexit scenario, but sources told Bloomberg that Johnson might face pressure from the parliament to reconsider the controversial internal market law, which may rejuvenate the talks with Brussels.   GBP/USD held at 1.2941 as of 21:22 GMT, the pair hit an intraday high of 1.2979 and a low of 1.2911.

The US dollar fell against most of its peers on Tuesday, and hit a 1-week low, as investors await the latest developments about the second Covid-19 stimulus package in the US.   US Treasury Secretary Steven Mnuchin will meet with several Congress members both Republicans and Democrats to pave the way for an agreement on the second fiscal aid package.   The Trump Administration has proposed more than $1.8 trillion within the second Covid-19 package to pass it in Congress to support the US economy.   Data showed today that the US housing starts index rose by 1.9% to 1.415 million units during September.   The dollar index fell against a basket of currencies by 0.4% to 93.09 points as of 20:29 GMT, after it hit a high of 93.5 and a low of 93.1.

The Canadian dollar rose on Tuesday, as investors focused on the latest developments about the second Covid-19 stimulus package in the US.   US Treasury Secretary Steven Mnuchin will meet later today with several Congress members both Republicans and Democrats to pave the way for an agreement on the second fiscal aid package.   The Trump Administration said last week that has proposed more than $1.8 trillion within the second Covid-19 package to pass it in Congress to support the US economy.   This came as most of countries, led by the US, European countries, Canada and others, are facing a fierce war with the coronavirus crisis and its global economic impact.   As of 18:08 GMT, CAD/USD rose 0.6% to 0.7627, after hitting an intraday high of 0.7628, and a low of 0.7573.

The US dollar fell against a basket of major currencies on Tuesday, to deepen its losses for the third straight day, and hit a 1-week low, as demand slowed following the latest positive developments in the ongoing US political talks about the new Covid-19 aid package.   The dollar index fell 0.3% to a 1-week low of 93.15 points, after it opened at 93.42 points, and hit an intraday high of 93.50 points.   The index lost 0.3% yesterday, and posted its second straight daily loss, due to profit-taking from a 2-week high of 93.91 points.   Alongside profit-taking the greenback was weighed down after data showed better-than-expected data in China, in addition to positive remarks about the Covid-19 aid program in the US.   The US House of Representatives spokesman Drew Hamill said on Monday that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued to narrow their differences on the aid package in a telephone conversation.   Hamill added that by the end of Tuesday there will be clarity on whether the aid bill can be passed before the November 3 presidential election.

Euro rose in European trade on Tuesday for the third session against dollar on hopes for US stimulus before the presidential elections in November.    EUR/USD rose 0.2% to 1.1793, after closing up 0.4% yesterday away from two-week lows at 1.1688.    The dollar index fell 0.2% on Tuesday for the third straight session against a basket of major rivals.    The decline came as haven demand slows on the greenback with sentiment improving and hopes renewed for US stimulus in upcoming days.    House President Nancy Pelosi and Treasury Secretary continue to narrow the disagreements on the stimulus plan.    Pelosi said by Tuesday, it should be clear whether a stimulus plan could be passed before the November elections.

USD/JPY tilted higher in Asian trade off October 2 lows amid a lack of data from Japan and ahead of US data and Fed speeches today.    As of 06:50 GMT, USD/JPY rose 0.09% to 105.53, with the highest since October 13 at 105.62.    From the US, building permits are expected up to 1.52 million units in September, while Housing Starts are expected up to 1.45 million units.    New York Fed Governor John Williams will talk today in a series of web seminars, with similar speeches other Fed officials on financial stability.    Democrats and Republicans remain in a tug of war over Covid relief, with the World Health Organization reporting 39.95 million global coronavirus cases so far, with the death toll standing at 1.11 million.

The British Pound rose against the US dollar on Monday, amid optimism about  a Brexit deal between the United Kingdom and the European Union.   A British official said on Sunday that the door is still open to the Brexit talks if the European Union officials showed some flexibility.   While the British Prime Minister Boris Johnson said on Friday that the trade talks with the EU have ended and without any change in the European position, weeks ahead of the talks deadline.   Johnson ordered his cabinet members to prepare for a no-deal Brexit scenario, but sources told Bloomberg that Johnson might face pressure from the parliament to reconsider the controversial internal market law, which may rejuvenate the talks with Brussels.   GBP/USD rose 0.2% to 1.2947 as of 20:39 GMT, the pair hit an intraday high of 1.324 and a low of 1.2898.

The US dollar fell against most major rivals on Monday, as the market focused on the latest developments about the US second fiscal stimulus package to ease the coronavirus impact.   Federal Reserve Chairman Jerome Powell stated today that the Fed is open to collaborating with the private sector on the digital dollar, but the bank is not committed to launching it.   Powell warned that the central bank will face difficult monetary policy implications due to launching a digital dollar, and noted the importance of the US dollar in the global economy.   The Trump administration proposed a $1.8 trillion fiscal stimulus package in order to pave the way for an agreement with the US congressional leaders to mitigate the coronavirus impact, ahead of the November election.   The dollar index fell against a basket of currencies by 0.3% to 93.2 as of 19:38 GMT, after hitting a high of 93.7 and a low of 93.2.

The Australian dollar inched higher on Monday, amid the continued optimism about the US second fiscal stimulus package to ease the coronavirus impact.   This came despite the release of the actual reading of China GDP, which came in at 4.9% during the third quarter, below expectations of 5.5%, vs. 3.2% during the second quarter.   The Donald Trump administration proposed a $1.8 trillion fiscal stimulus package to mitigate the coronavirus impact.   The Trump administration will try to reach compromise with the US congressional leaders in order to pave the way for an agreement on the package ahead of the November election.   As of 17:57 GMT, AUD/USD rose 0.1% to 0.7089, after hitting a high of 0.7116, and a low of 0.7072.

The US dollar fell sharply against its peers on Monday, to deepen its losses for the second straight day and pull back further from a 2-week high, due to slowing demand amid strong market sentiment and hopes about the long awaited fiscal stimulus package in the US, following the recent comments by the US House of Representatives Speaker.    The dollar index fell more than 0.5% to 93.22 points, after opening at 93.73 points, with an intraday high of 93.76.   The index fell 0.1%, on profit-taking from a 2-week high of 93.91 points that was hit on Thursday.   Alongside profit-taking the greenback was weighed down after data showed a bigger-than-expected jump in the US retail sales index during September, which raised hopes for a quick recovery the coronavirus crisis in the US economy.   However, the US dollar managed to gain 0.7% during the past week, and posted its first weekly gain in 3 weeks, thanks to strong demand due to doubts about the US stimulus package and concerns about the coronavirus second wave of infections.   US House Speaker Nancy Pelosi said on Sunday that despite  remaining objections between Democrats and the White House negotiators, she remains optimistic that an agreement can be reached before the Nov.3 election.

Euro rose in European trade against dollar away from two-week lows on strong Chinese data, which bolstered risk appetite in markets.    USD/JPY rose 0.2% to 1.1737, after closing up 0.1% on Friday away from two-week lows at 1.1688.    EUR/USD lost 1% last week, the first weekly loss in three as investors bought up the greenback on haven demand.    Back then, hopes for US stimulus fades before the presidential elections while a second coronavirus wave ravages the US and UK.    The dollar index fell 0.2% on Monday for another session against a basket of major rivals.    Earlier Chinese data showed GDP growth at 4.9% in the third quarter, up from 3.2% in the second quarter.    China's industrial production rose 6.9% in September, improving from 5.6% in August, while retail sales rose 3.3%, improving from 0.5%.

USD/JPY tilted higher in Asian trade off October 2 lows following earlier data from Japan and ahead of US data and Fed speeches.    As of 07:22 GMT, USD/JPY rose 0.01% to 105.42, with an intraday high at 105.50.    Earlier Japanese data showed the trade surplus up to 675 billion yen from 248.6 billion in August.    Japan's exports fell 4.9%, improving from a 14.8% drop in August, while imports fell 17.2%, improving from a 20.8% y/y drop in August.    Federal Reserve Chair Jerome Powell will participate in a panel discussion about cross-border payments and digital currencies at the International Monetary Fund's annual meeting, via satellite.    Federal Reserve Governor Richard Clarida will speak about the economic outlook and monetary policy at the American Bankers Association's virtual convention.    US talks are ongoing between Republicans and Democrats to pass a financial rescue bill to support the economy, with both sides still hoping for some results this week.   The World Health Organization reported total global Covid 19 cases of 39.6 million, with the death toll standing at 1.107 million.

The British Pound rose slightly against the US dollar on Friday, despite the British Prime Minister Boris Johnson's negative comments.   Johnson said the UK will leave the EU customs union and the single market without an agreement due to the failure of delivering a fundamental change of approach from Brussels.   This came after the leaders of the European Union decided they would continue negotiations in the coming weeks with the British side.   The market remain concerned about the coronavirus global impact, especially as the second wave of infections forced several major European countries to re-impose lockdown restrictions, led by the UK and France.   GBP/USD rose 0.1% to 1.2924 as of 21:16 GMT, the pair hit an intraday high of 1.2962 and a low of 1.2869.

The US dollar fell against most of its peers on Friday, amid anticipation of the second fiscal aid package to ease the coronavirus impact on the US economy.   President Donald Trump decided last week to stop the second Covid-19 stimulus talks between his administration and Congress leaders until after the presidential election in November.   However, the Trump administration proposed to the Congress a $1.8 trillion fiscal stimulus package, and then President Trump informed Treasury Secretary Steven Mnuchin to raise even more.   The US retail sales index rose 1.9% in September, beating forecasts of 0.7%, and the first reading of the University of Michigan's consumer confidence survey rose to the highest level since March at 81.2 points.   The dollar index fell against a basket of currencies by 0.1% to 93.7 points as of 20:24 GMT, after it hit a high of 93.8 and a low of 93.5.