Market Drivers; US Session

US Election Driving Market Sentiment Worldwide

The US Dollar Index (DXY) weakened early this week as investors unwound positions related to the “Trump trade” and grew cautious ahead of the US election on Tuesday and the FOMC meeting on Thursday.

Key Currency Pairs and Economic Events:

EUR/USD: The pair climbed above 1.0900, but momentum stalled late in the session. ECB officials Lagarde and Schnabel are scheduled to speak.

The Pound Sterling strengthened against the US Dollar, approaching the 1.3000 level. Key UK economic data, including the BRC Retail Sales Monitor, New Car Sales, and the final S&P Global Services PMI, are due for release.

USD/JPY: The pair declined, testing the 200-day SMA near 151.50. The BoJ Minutes and the final Jibun Bank Services PMI are on the Japanese economic calendar.

AUD/USD: The Australian Dollar rallied, surpassing the 0.6600 level. The RBA’s interest rate decision will be a key event for the Aussie.

Commodities:

Oil: WTI crude oil prices surged past $71 per barrel after OPEC+ decided to delay planned output increases.

Gold and Silver: Both precious metals gained ground as the US Dollar weakened and Treasury yields remained relatively stable. Gold approached $2,750 per ounce, while Silver neared $33.00.
Overall, the US election will be a major market mover this week, with potential implications for global risk sentiment and currency exchange rates.