Market update: EUR/USD down to 1.1358

• USDIndex up and currently settled to 95.49.

• Further signs of rising inflation pressures from RBA, BoE and FOMC.

• RBA: Governor Lowe is stressing that he will not hike rates to control house prices and that even an underlying inflation rate of 2.5% would not be enough for a rate hike.

• Biden and Xi: Played down hopes of a big breakthrough.

• BoE’s Bailey said he is “very unease about the inflation situation”, after tight labour market. UK ILO unemployment dropped to 4.3% in September – He had fuelled speculation of an early rate hike.

• US Treasury Yields restored their safe haven allures, as the 30-year tested 2.00%, the highest since the November 3 FOMC selloff, and the 10-year rose to 1.62%, the highest since late October, while the 2-year jumped to challenge 0.54%, not seen since early 2020. Currently eased lower.

• Equities: USA30 holding on to small gains, largely due to component Boeing, which has surged nearly 5% following freighter orders received at the Dubai air show. USA100 down 0.2%, as higher Treasury yields weigh on big tech, while Tesla has dropped another 4%, after falling 15% last week on CEO Musk’s sale of nearly $7.0 bln of the stock. The USA500 is trading on either side of flat.

• China warns state firms on crypto mining.

• JPMorgan Chase & Co (JPM.N) on Monday sued Tesla Inc (TSLA.O) for $162.2 million, accusing Elon Musk’s electric car company of “flagrantly” breaching a contract related to stock warrants after its share price soared. – Renaissance, other big hedge funds increase stakes in Tesla in Q3.

• Turkey’s lira weakened nearly 0.8% on Tuesday to a new record low of 10.14 against the US dollar, weighed down by expectations of another unorthodox rate cut from the central bank this week.

• USOil up to 80.66.  Gold steady within 1861.79-1868.87.

• FX markets – EURUSD down to 1.1358,  GBPUSD bounced to 1.3464, and AUDUSD down to 0.7342.

• Focus today: Geopolitical tensions remain in focus, as the calendar is focused on the second reading for EU Q3 GDP, US retail sales and industrial production and a lot of speeches.

Biggest FX Mover (07:30 GMT) GBPAUD (+0.49%) topped to 1.8341. Faster MAs aligned higher, MACD lines turn positive but signal line remains below 0, while RSI is at 72 and rising. H1 ATR 0.00226, Daily ATR 0.01248.