The USD rose modestly yesterday, as rising Treasury yields stalled early in the North American session and US equities closed in the black. Atlanta Fed President Bostic noted that inflation risks have receded while employment risks have risen, stating, "Because inflation has come down so far, the employment side of the mandate starts to become more salient." Boston Fed President Collins sees the labor market in a good place overall, noting, "My confidence in the disinflation trajectory has increased—but so have the risks of the economy slowing beyond what is needed to restore price stability." Fed Vice Chair Jefferson, speaking after markets closed, said he believes, "The balance of risks to our two mandates has changed—as risks to inflation have diminished and risks to employment have risen, these risks have been brought roughly into balance."

This morning, the USD has gained against all G10 peers, extending its nearly 2-month highs. Investor concerns over Big Tech breakup emerged after the US Justice Department said it is considering forcing Google to sell parts of its search engine business. China's stimulus campaign remains in focus on news that China's Finance Ministry will hold a briefing on "intensifying fiscal policy adjustment." Elsewhere, the NZD is the worst performer in the G10 space after the RBNZ cut rates by 50 basis points overnight. Another 50 basis-point cut at the central bank's November 27th meeting is fully priced. The meeting minutes of the latest Fed decision will be released at 2PM, with several Fed officials speaking before. US CPI data comes tomorrow morning.

EUR/USD closed flat yesterday and is 0.15% lower today, trading about 0.9% lower than this time last week. Eurozone aggregate data has been light this week and is set to continue through next week as investors turn their attention to regional data prints. The ECB's Kazimir broke from his colleagues' recent commentary, questioning whether next week's decision is a done deal. "We still lack sufficient confidence that we're out of the woods and that the goal of sustainably being at 2% is entirely realistic," he said, adding, "It's crucial to make decisions based on the overall summary of information. And we'll have that key information in December." The black-out period for ECB speakers has begun ahead of the October 17th rate decision. Implied swap odds have the decision 95% priced for a 25 basis-point cut.

GBP/USD rose 0.1% yesterday and is marginally lower today, trading approximately 1.4% lower than this time last week. Light data thus far this week makes way for the BOE's Bank Liabilities and Credit Conditions Survey tomorrow, and industrial and manufacturing production data Friday. A report has suggested that Chancellor Reeves, in an effort to create space for a modest rise in public spending, plans to change the measure of public debt it currently uses to one that excludes losses from BOE bond sales.

USD/CAD rose 0.2% yesterday and is 0.25% higher today, trading about 1.4% higher than this time last week and headed for its 6th straight day of gains. Yesterday saw Canadian international trade post its 6th straight monthly deficit in August, with energy product exports seeing the largest declines. Softness in commodity prices has weakened the CAD, and this latest trade deficit was mainly driven by lower crude oil prices. Key releases come Friday with September employment data and the Q3 BOC business surveys.