OPEC+ has decided to prolong the reduction in oil production until the conclusion of December.

A broader coalition known as OPEC+, comprising OPEC member states along with other oil-producing nations, has reached a consensus to prolong their reduction in oil production to 2.2 million barrels per day (bpd) through December 2024. Additionally, these nations have reaffirmed their dedication to achieving complete compliance with their production objectives and to addressing any instances of overproduction by September 2025.

Options markets are preparing for potential Forex risks associated with the US election, leading to an increase in volatility.

There was a notable surge in implied volatility in the options markets, especially concerning options with a focus on the upcoming U.S. election.

Currencies such as the Euro (EUR), Australian Dollar (AUD), New Zealand Dollar (NZD), Mexican Peso (MXN), and South Korean Won (KRW) saw significant spikes in volatility.

According to analysts at Standard Chartered, the most significant percentage increases in implied volatility were observed in the Chinese Yuan (CNH), Mexican Peso (MXN), Euro (EUR), South Korean Won (KRW), and Singapore Dollar (SGD).

The likelihood of Harris winning against Trump has increased even more

The current sentiment in the US presidential election prediction markets leans towards Vice President Kamala Harris, with her odds now exceeding those of former President Donald Trump on a prominent betting platform. This shift comes amidst polling data suggesting a closely contested race between the two candidates. Notably, PredictIt has assigned a 51% probability of a Harris victory on the upcoming Tuesday, signifying her first overtaking of Trump (who currently stands at 49% likelihood) on the platform since October 9th.

Mexican Peso hits new annual low due to robust US Dollar performance

The Mexican Peso experienced a significant depreciation against the US Dollar on Friday, reaching a new yearly high of 20.29, surpassing the previous peak of 20.22 observed late in the North American session. This movement is expected to result in weekly losses exceeding 1.50%. Economic activities on both sides of the Rio Grande showed positive developments in Mexico. In contrast, the United States reported disappointing job data and a contraction in manufacturing activity. As a result, the USD/MXN pair is currently trading at 20.26, reflecting a 1.20% increase.

Recent reports from Mexico indicate an improvement in Business Confidence in October, with the Unemployment Rate remaining below the 3% mark. S&P Global's findings revealed a continued expansion in manufacturing activity. Additionally, the Bank of Mexico announced an increase in foreign exchange reserves and shared the results of its private survey, which suggests that most economists anticipate the economy growing at a rate of 1.4%, half of the initial estimate made in January.

Asian stock markets are experiencing an increase due to China's stimulus measures, with a particular focus on the upcoming US elections.

Asian stock markets saw an increase on Monday as investors anticipated updates on fiscal stimulus from an upcoming meeting of China's prominent policymakers this week. Nevertheless, concerns preceding the U.S. elections limited the magnitude of the gains. Trading activity in the region was muted due to a market holiday in Japan, leading to decreased regional trading volumes. Nikkei 225 futures experienced a 0.2% decline.

The upward trend observed in Asian markets was partially influenced by a U.S. nonfarm payrolls report released on Friday, which came in lower than anticipated. This outcome further solidified the likelihood of additional interest rate reductions by the Federal Reserve, in light of a weakening labor market. In the U.S. trading session overlapping with the Asian markets, equities displayed stability, as focus turned towards the forthcoming Federal Reserve meeting scheduled for later this week.