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

• Federal Reserve officials speaking today include Logan, Barr and vice chair Jefferson
• ECB speakers coming up Monday include Knot, de Cos, de Guindos, and more.
• US earthquake – Seattle buildings swaying
• Bank of England Monetary Policy Committee member Mann speaking on inflation Monday 9 Oct.
• US (partial) market holiday on Monday, 9 October 2023 – Columbus Day
• US autoworkers to go on strike at Volvo Group-owned Mack Trucks
• PBOC 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 Kong
• PBOC is expected to set the USD/CNY reference rate at 7.2945 – Reuters estimate
• Japan likely won’t intervene to reverse yen downtrend – Japan ex-top FX diplomat
• Israel massing 100,000 troops in southern Israel to neutralize Hamas’ military facilities
• Australia agreed to ensure a stable supply of energy resources such as LNG, coal to Japan
• Workers at Chevron’s two LNG in Western Australia voted to restart strikes on Friday
• Gold update – higher after the Hamas weekend attack on Israel
• US markets open (Globex Sunday evening trade): S&P, NASDAQ down, oil up
• Japan has issued a tsunami advisory – Izu Island area (eastern Japan)
• Wall Street Journal reports that Iran helped plot the attack on Israel
• Airlines cancel flights into Tel Aviv, Isreal after Hamas murderous attacks on civilians
• Trade ideas thread – Monday, 9 October 2023
• Monday morning open levels – indicative forex prices – 9 October 2023 – USD higher
• Newsquawk Week Ahead: FOMC minutes, ECB minutes, US & China CPI and UK GDP
• Weekly Market Outlook (09-13 October)
• As the scope of Hamas attacks come into view, the Middle East future grows murky
• Saudia 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 up
• US
  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.