Daily Broad Market Recap – October 28, 2024

The coast was clear in terms of top-tier economic releases on Monday, but there was no shortage of major moves among major asset classes.

Check the headlines that drive price action.

Titles:

• Targeted Israeli air strikes Over the weekend, it avoided Iranian oil and nuclear facilities
• Liberal Democratic Party elections in Japan He pointed out that the ruling coalition lost its majority for the first time since 2009
• BoE sales index for October fell from +4 to -6 (expect -9)
• China’s leading CB index posted another 0.2% m/m decline in September
• European Central Bank official De Guindos noted that price expectations are surrounded by significant risks
• Bank of Canada Governor Macklem stated that they will have to discover the neutral level of interest rates over time

Broad market price movement:

While most asset classes spent the Asian trading session in lower ranges, WTI fell as traders reacted to news of Israel avoiding Iranian oil and nuclear facilities during its targeted air strikes.

The energy commodity fell again at the start of the London session, before stabilizing and eventually closing down more than 5% for the day.

Bitcoin, on the other hand, had the ball rolling as BTC/USD rose near all-time highs, as investors appeared to be looking for higher returns on “safe-haven” holdings amid market uncertainty surrounding the US elections, and tensions in the Middle East. , and tensions in China. Stimulus and Fed policy. Gold spent the day in the red zone but managed to trim its losses towards the end of the American session.

Meanwhile, US stock markets appear to be in a somewhat cautious and positive mood in anticipation of earnings releases from companies like Apple, Meta, Microsoft, Amazon and Visa later this week.

Forex market behavior: US dollar against major currencies:

Overlay of the US dollar against major currencies Chart by TradingView

Major currencies also saw severe turmoil on Monday, particularly the Japanese yen which started on a much weaker footing after the LDP elections revealed that the ruling coalition was unable to secure enough seats to achieve a majority.

This imposes a great deal of political uncertainty on Japan, as new Prime Minister Ishiba acknowledged the “strict judgment” of voters in light of corruption financing scandals involving senior LDP lawmakers.

The USD/CHF pair also had a sustained start, with some risk-off flows supporting the safe-haven dollar during Asian market hours, as well as against the Australian and New Zealand dollars. However, the US currency eventually took a downward trend at the beginning of the London session before finding a bottom and rising slightly at the opening of the US markets.

However, the major pairs finished mixed, with the dollar ending in the green against the Australian dollar and the yen while losing points against the rest of its peers.

Potential catalysts coming on the economic calendar:

• German GfK Consumer Climate Index at 7:00 AM GMT
• US goods trade balance and initial wholesale inventories at 12:30 pm GMT
• US S&P/CS Composite CPI at 1:00 PM GMT
• CB US Consumer Confidence Index 2:00 pm GMT
• JOLTS US Job Openings Report 2:00 pm GMT
• Testimony of the President of the Swiss Central Bank, Schlegel 6:00 PM GMT
• Bank of Canada Governor Macklem’s speech at 7:30 PM GMT

Get ready for another round of potential volatility for the dollar, as Uncle Sam prepares to release… CB Consumer Confidence Index And this week’s first NFP guide: JOLTS vacancy report.

As always, keep an eye on the headlines affecting overall market sentiment, and don’t forget to check out our brand new Forex Correlation Calculator!