Market Drivers – US Session, October 09

The Middle East is a key focus for markets this week, with the Australian Westpac Consumer Confidence Index and the NAB Business Conditions survey due in the Asian session. The US CPI is expected to be the key report on Thursday. The US Dollar Index experienced a modest decline near the 106.00 level on Monday, but the Greenback lost momentum later in the day as the market stabilized and US yields continued to decline.

The focus will be on inflation figures, with the Producer Price Index (PPI) on Wednesday and the Consumer Price Index (CPI) on Thursday. The outsized payroll number raises the prospect of the Fed hiking again, but it’s not a clincher. The September Consumer Price Index data out this week should be more revealing, with core inflation expected to rise by 0.2% m/m, which should be well received by the Fed.

The situation in the Middle East might have an effect on the markets, potentially harming market sentiment and raising demand for safe-haven assets like gold and crude oil prices. The course of events could take a “Black Swan” turn that fundamentally changes the picture.

The Japanese Yen was among the best-performing currencies, supported by the decline in global bond yields. EUR/USD trimmed its losses during the American session, rising above 1.0560. GBP/USD finished flat, consolidating around the 1.2240 area, supported by some weakness in the US Dollar.

Also Read:
Energy spikes, Defense Stocks surge on Middle East turmoil

EUR/USD achieves some gains after knocking back on risk aversion

Wall Street declines on Middle East turmoil

Sterling recovers on revived risk sentiment

Gold price finds momentum on deepened Middle East tensions

Noor Capital | Interview with Mohammed Hashad on Dubai TV – October 9, 2023