Societe Generale in its early Tuesday economic news summary pointed out:

-- US dollar broadly bid. EUR/USD retreats below 1.09, nears 200dma at 1.0870 (Weekly Technicals), large option expiry supports at 1.0850-75 (1.4 billion euros). USD/CNH +0.4% to 7.126. Reports indicate China's banks may cut deposit rates as early as this week by at least 20bpa.

-- Brent crude slumps below $75/barrel on a Washington Post report that Israel Prime Minister Netanyahu has agreed to limit retaliation against Iran to military targets, spare nuclear and energy facilities.

-- United Kingdom's average earnings excluding bonuses slow to 4.9% three-month/year-over-year in August. The private sector 4.8%, public sector 5.2%. Employment gains 373,000 three-month/three-month. The unemployment rate dips to 4.0%, the lowest since January 2024. The participation rate climbs to 78.2%, the highest since November 2023.

-- Day ahead: New York Fed one-year inflation expectations, United States Empire manufacturing, Federal Reserve speakers Daly and Kugler. Europan Central Bank bank lending survey. Germany ZEW survey. Canada's consumer price index.

-- Nikkei +0.8%, Euro Stoxx 50 futures +0.4%, EUR 10-year IRS -3bps at 2.43%, Gold -0.1% at $2,645/oz.