The dollar weakness following the disappointing September US jobs report, which showed that Nonfarm Payrolls rose by 194,000 to miss the market expectation of 500,000 by a large margin, remained short-lived. Surging US Treasury bond yields provided support to the greenback and helped it remain resilient against its rivals.
There won’t be any high-tier macroeconomic data releases on Monday. The US bond markets will be closed due to Columbus Day but stock markets will operate during normal hours. Nevertheless, the trading action is expected to remain subdued ahead of Wednesday’s US inflation data.
Wall Street: US stock futures trade flat on Monday, mirroring a neutral market mood.
USD/JPY: USD/JPY extended last week’s rally, which was fueled by the 10-year US T-bond yield’s advance to multi-month highs above 1.6%, and reached its strongest level since December 2018 at 112.75. Moreover, the Nikkei 225’s impressive more-than-1.5% increase on Monday seems to be putting additional weight on the safe-haven JPY’s shoulders.
Gold: Following a sharp upsurge to a fresh two-week high of $1,781 in the early American session on Friday, gold ended up closing the week with small losses at $1,757. Currently, XAU/USD is fluctuating in a tight channel above $1,750.
EUR/USD: The EUR/USD pair registered losses for the fifth straight week and stays relatively quiet below 1.1600 at the start of the week.
GBP/USD: British pound is edging higher in the early European session on Monday and the GBP/USD pair was last seen trading at its highest level since late September at 1.3658. September labour market data from the UK could be the next major catalyst on Tuesday.
AUD/USD: Supported by rising copper prices, the AUD/USD pair opened on a firm footing and closes in on the multi-week high it set at 0.7340 on Friday.
Oil: The barrel of West Texas Intermediate is trading above $80 for the first time since November 2014 after reports suggesting that OPEC+ will refrain from ramping up its oil output.
Cryptocurrencies: Following a quiet weekend, Bitcoin regained its traction and renewed five-month highs above $56,000. Ethereum is up more than 3% on a daily basis and is trading around $3,500.