The euro held steady at $1.2850 level

Good Morning,

- The dollar trade flat against most major currencies…

- Concern about a potential economic slowdown in China pressured world stock indexes on Monday.

- The dollar index last traded at 84.671, having peaked at 84.861 on Monday, a high not seen since July 2010. It has posted 10 straight weeks of gains as markets wagered U.S. rates would rise before those in Europe.

- The euro held steady at $1.2850 level. The common currency has pulled up from Monday's fresh 14-month low of $1.2816.

- Mario Draghi on Monday reiterated that the bank is ready to use additional unconventional tools if needed to spur growth.

- New York FED’s president William Dudley warn that the recent dollar gains could complicate the Fed's job, potentially hurting U.S. economic performance and pushing down inflation. Dudley said on Monday that while the value of the dollar is not a policy goal of the Fed's, it had to be taken "on board" as part of the central bank's economic forecast.

- Nomura on EUR/USD: The bank notes that the first signal that wave-3 (1.37-1.2826) is complete is a rally through 1.2925 followed by 1.2995. "A proper wave-4 correction can carry Euro to Fib resistance between 1.3161/3261," Nomura argues. "S/t, from 1.2995 there is a proper 5-wave decline and momentum divergences between the recent pivot lows are in place. The 1.2826 low is critical support as a break below clears a path to the more formidable 1.2755 level," Nomura adds.

- Bank of Canada deputy gov.: Interest rates may have to be about one-and-a-half percentage points lower than they have been historically in order for the Canadian economy to operate at full capacity.

- Organization for Economic Cooperation and Development: The impact of the Japan exchange rate on the nation’s trade balance has always been limited. He added that attempts to restore exports to levels prior to the 2008 global financial crisis through a weak yen are likely to fail.

- A Chinese manufacturing gauge topped estimates this month, suggesting targeted stimulus is helping the economy withstand a property slump. The preliminary Purchasing Managers’ Index from HSBC and Markit Economics was at 50.5, compared with the median estimate of 50 in a Bloomberg survey and Augusts’ final reading of 50.2.

- China’s economy remained stuck in “low gear” this quarter, with struggling retail and residential real-estate industries countering improvements in manufacturing and transportation, a private survey showed. Growth in investment slowed further, borrowing costs rose and the share of firms applying for and getting bank loans remained at “rock bottom levels,” according to the China Beige Book.

- China's finance minister, Lou Jiwei, on Sunday said the country wouldn't dramatically alter its economic policy because of any one economic indicator. His comments came days after many economists lowered growth forecasts for China following the release of data that showed factory output in August grew at its weakest pace in nearly six years.

- The Australian dollar touched a seven-month low of $0.8851 against the U.S. dollar, before got a slight boost after a private survey showed that activity in China's manufacturing sector unexpectedly picked up in September.

- Watch today: German PMIs & Eurozone PMIs, US manufacturing.

Have a nice Day !