EURUSD oscillates between 1.1220 - 1.1244 overnight range. The tight trading range could be tested this week, depending on DB, US election debate, ISM, and NFP. Bearish skew in options 1mth RR -75bp exaggerated? Options: 1.1200 (€611m) and 1.1280 (€334m). Overall, the dollar seems to have mixed reactions vs. G10, held onto the modest gains against the other major counterparts in quiet trade on Monday, as Friday’s upbeat U.S. data continued to support the greenback, while investors eyed an upcoming report on U.S. manufacturing activity due later in the day.

USDJPY remains between 101.671 - 101.178 overnight range. US/JA 2y IRS (111bp) and 10y IRS (140bp) in focus (US ISM, NFP). Range 100.0- 102.79. China out all week. Option expiries: 99.50-100.90 ($3bn+), 100.95-102.00 ($1.59bn) and 102.20-50 ($3.2bn+). Japanese Tankan Q3 large Mfg index unchanged at +6, large Mfg outlook also unchanged at 6, business optimism stays at 3y low due amid stronger yen and weak global growth.

GBPUSD: 1.2902 - 1.2953 overnight range. Cable threatens the break of 1.2900/1.2866 support after PM May’s A50 comments. Implied 1m-3m vol better bid. IMM GBP shorts up again to 87,714 contracts. EURGBP 0.8725 (Aug high): retest on cards?

In UK, following the biggest one-month gain in the survey’s history in August, September’s manufacturing PMI posted a further rise to 55.4 from 53.4, confounding expectations of a dip, the strongest since June 2014, September’s reading remains above June’s pre-vote level of 52.1, and the long run average of 51.5, with the gain this month still doing little to suggest that a steady state has been reached.