US equities rebounded strongly to open the new November trading week. The prospect of peace talks between Iran and the US grew, following comments by the Secretary of State, Marco Rubio. Oil prices tumbled, crashing to US$96/barrel, while global bond yields also showed signs of easing. The Mid-Term elections are also underway, tonight in the USA, which will have a dramatic impact on the US policy. The US Dollar was softer, with the EUR rising to 1.1200, while the GBP broke back above 1.3400.
The softer reserve stabilised commodity currencies, but they still look extremely vulnerable, ahead of these current important events. The first Tuesday in November is the Melbourne Cup and the ‘Great Race’ will occupy many, but it is also the RBA’s meeting, to decide interest rates. The Central bank may decide to raise rates, under cover of Flemington, which will cause reaction in markets.
