Here’s what you should know about Forex.
Forex Markets began the week cautiously as geopolitical tensions in the Middle East escalated over the weekend. On Monday, Eurostat will release Trade Balance statistics for August. While the Federal Reserve Bank of New York will issue the Empire State Manufacturing Survey for October. Meanwhile, investors will be watching the news surrounding the Israel-Hamas confrontation closely.
On Sunday, White House National Security Advisor Jake Sullivan stated. That the US could not rule out Iran acting directly or through Hezbollah. The Lebanon-based armed group that it sponsors. “Iran will not remain a bystander in this situation,” . He said. “Hossein Amir Abdollahian, Iran’s Foreign Minister, has informed Israel via its allies that if its crimes in Gaza continue tomorrow. It will be too late.” Meanwhile, the UN’s humanitarian agency warned that hospital fuel stocks in Gaza were running low.
Forex Market movement in pairs.
US stock index futures were slightly higher in the European morning. While the US Dollar (USD) Index was hovering around 106.50. Following a dramatic drop on Friday. The benchmark 10-year US Treasury bond yield began with a positive gap. And was last seen gaining more than 1% on the day at 4.68%.
Over the weekend, the National Party, led by Christopher Luxon, defeated the Labour Party in New Zealand’s general election. Luxon still needs to achieve an agreement with coalition partners. He informed reporters that talks on establishing a government with Act and maybe NZ First will be “worked out over the next days and weeks.” The NZD/USD gained positive momentum as a result of these developments, and the pair was last seen up 0.7% on the day at 0.5925.
Following losses the previous week, the EURUSD staged a little pullback early Monday and entered a consolidation period just around 1.0550.
Gold climbed substantially on Friday, gaining more than 3% as the precious metal benefited on safe-haven demand. The XAUUSD pair reversed early Monday and was last spotted dropping more than 1% on the day at $1,910.
USDCAD fell as a result of hawkish comments by Bank of Canada (BoC) Governor Tiff Macklem and rising crude oil prices. On Friday, the market was in the red. The BoC will issue the Business Outlook Survey for the third quarter later in the day. Early Monday, the barrel of West Texas Intermediate held firm just around $87, and USDCAD fluctuated in a narrow zone about 1.3650.
Following a calm Asian session, GBPUSD gained traction in the European morning, climbing around 1.2200. On Tuesday, the UK’s Office for National Statistics will publish pay inflation figures.
After approaching the key 150.00 mark in the second half of last week, USD/JPY lost traction and retreated to the 149.50 range. Japan’s Industrial Production fell 0.7% month on month in August, according to figures released earlier in the day.
