Market Drivers; US Session

The US Dollar Index (DXY) traded mixed on Monday as investors continued to grapple with rising geopolitical tensions in the Middle East and the implications of Friday’s strong jobs report. Despite higher US yields, the DXY remained near recent peaks above 102.00.

Key Economic Events for Tuesday, October 8:

US: NFIB Business Optimism Index, Balance of Trade, RCM/TIPP Economic Optimism Index, API Crude Oil Inventory Report, Fed speeches by Bostic, Musalem, Kugler, and Collins

Eurozone: German Industrial Production, ECB speeches by Schnabel and McCaul
UK: BRC Retail Sales Monitor

Japan: Household Spending, Current Account, Average Cash Earnings

Australia: RBA Minutes, NAB Business Confidence, RBA official speech by Hauser.

Currency Pair Performance:

EUR/USD: Continued to decline, testing recent lows near 1.0950.
GBP/USD: Extended its five-day losing streak, approaching four-week lows near 1.3060.
USD/JPY: Surrendered initial gains to fresh highs above 149.00.
AUD/USD: Retraced further, hitting three-week lows near 0.6740.

Commodities:

WTI Crude Oil: Prices rose further, approaching the 200-day SMA above $77.00 amid Middle East geopolitical concerns.

Gold: Prices declined to the $2,640 level due to rising US yields and expectations for a smaller Fed rate cut.
Silver: Prices tested three-day lows near $31.40, reversing a four-day winning streak.

Overall, investors remain cautious as geopolitical risks and the Fed’s monetary policy outlook continue to dominate market sentiment