① The safe haven currencies, the US dollar and Japanese yen, slightly rose on Monday as the violent situation in the Middle East panicked the market, while the US employment report further boosted the US dollar.
② At the same time, the risk sensitive Australian and New Zealand dollars briefly declined in light Asian trading, and Japan was closed for a holiday.
③ The euro fell 0.45% against the yen at one point to 157.27; The Australian dollar fell about 0.7% against the Japanese yen at one point, hitting a session low of 94.60 yen. The US dollar fell 0.2% against the Japanese yen at one point to 148.98.
④ The Palestinian Islamic organization Hamas launched a surprise attack on Israel on Saturday, and Israel retaliated by heavily bombing the Palestinian enclave of Gaza on Sunday, resulting in over a thousand deaths. This has led to a relatively fragile market sentiment.
⑤ As you expected, there was a lot of uncertainty in the market this morning, "said Tony Sycamore, a market analyst at IG Australia
⑥ The euro fell 0.4% to $1.0547 against the US dollar, while the pound fell 0.3% to $1.2196 against the US dollar.
⑦ The US dollar index rose 0.2% to 106.35 points, with Friday's data showing the largest increase in non farm employment in eight months in September, laying the groundwork for higher than expected inflation data later this week.
⑧ An economist at Wells Fargo Bank said, "The strong and robust employment report is likely to keep the Federal Open Market Committee vigilant as it looks for signs that a tight labor market could hinder a sustained return to the 2% level of inflation. There is a possibility of another rate hike before the end of the year, but our basic forecast is still that July will be the last rate hike in this tightening cycle
⑨ Market pricing shows that the likelihood of the Federal Reserve maintaining interest rates unchanged at its November policy meeting is 82%
