ForexLive Asia-Pacific FX news wrap: Oil higher after murderous attack on Israel

Federal Reserve officials speaking today include Logan, Barr and vice chair JeffersonECB speakers coming up Monday include Knot, de Cos, de Guindos, and more.US earthquake – Seattle buildings swayingBank of England Monetary Policy Committee member Mann speaking on inflation Monday 9 Oct.US (partial) market holiday on Monday, 9 October 2023 – Columbus DayUS autoworkers to go on strike at Volvo Group-owned Mack TrucksPBOC sets USD/ CNY reference rate for today at 7.1789 (vs. estimate at 7.2945)Monday morning trade in securities and derivatives has been cancelled in Hong KongPBOC is expected to set the USD/CNY reference rate at 7.2945 – Reuters estimateJapan likely won’t intervene to reverse yen downtrend – Japan ex-top FX diplomatIsrael massing 100,000 troops in southern Israel to neutralize Hamas’ military facilitiesAustralia agreed to ensure a stable supply of energy resources such as LNG, coal to JapanWorkers at Chevron’s two LNG in Western Australia voted to restart strikes on FridayGold update – higher after the Hamas weekend attack on IsraelUS markets open (Globex Sunday evening trade): S&P, NASDAQ down, oil upJapan has issued a tsunami advisory – Izu Island area (eastern Japan)Wall Street Journal reports that Iran helped plot the attack on IsraelAirlines cancel flights into Tel Aviv, Isreal after Hamas murderous attacks on civiliansTrade ideas thread – Monday, 9 October 2023Monday morning open levels – indicative forex prices – 9 October 2023 – USD higherNewsquawk Week Ahead: FOMC minutes, ECB minutes, US & China CPI and UK GDPWeekly Market Outlook (09-13 October)As the scope of Hamas attacks come into view, the Middle East future grows murkySaudia Arabia willing to boost oil production if prices are high to win US agreement

The horrific news over the weekend was that Hamas launched a massive attack against Israel from Gaza, way beyond anything seen in decades including:

over 3,000 missiles launched into Israel

a ground attack targeting civilians that killed more than 700 innocent people, including more than 200 kids at a music festival. A music festival.

military and civilian hostages taken, some already executed by the terrorists

As I post, the death toll due to the attack and its immediate aftermath is now over 1,100.

Markets responded in the early Monday hours, with only FX markets functioning, with a bid for the safe-haven US dollar and, to a lesser extent, JPY. More markets reopened in the following hours:oil is higher, jumping more than 4% as I update gold is upUS Treasury futures rose, Japanese markets were out on a holiday today so cash Treasury trade was limited‘risk’ traded lower – equities and equity index futures, and risk currencies such as AUD

As I update there have been partial retracements in markets but oil remains not too far from its session high. This is happening at a time with the US strategic petroleum reserve is at historically low levels.

There was little other news, but just noting:Japan, Taiwan and South Korea were closed for a holiday on Monday. Taiwan will remain closed on Tuesday. Morning trade on the Hong Kong Exchange was closed due to Typhoon Koinu. The typhoon has hit just a month after the city was paralyzed by record-breaking rainfall.Union workers at Volvo-owned Mack Trucks rejected a proposed five-year contract deal and will go on strike at 7 am on Monday, the United Auto Workers confirmed.