Despite continued positive news for the USD as tensions in the Middle East explode, DXY shows signs of decline.
The safe-haven US dollar rose in early European trading on Monday as escalating Middle East conflict weighed on risk aversion following this week's strong jobs report.
As of 03:00 ET (07:00 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, was trading 0.4% higher at 106.204.
Dollar demand soared on Monday after militants from the Palestinian organization Hamas carried out deadly attacks in several Israeli cities over the weekend. In response, Israeli airstrikes hit multiple targets in the Gaza Strip, making it the deadliest outbreak of violence in the country in 50 years.
The dollar/yen pair also received support, falling 0.1% to 149.16, but trading range was limited due to Japan's holiday closure. In contrast, the Israeli shekel fell against the US dollar to an almost eight-year low of 3.9230 shekels, and the Bank of Israel announced it would release up to $30 billion in foreign currency in an initial sale. . Foreign exchange to maintain stability.
The move quickly seemed to calm the market as the USD/ILS exchange rate rose 1.8% to 3.9063.
The dollar benefited from the release of better-than-expected jobs data late last week. U.S. employment growth in September was the fastest in eight months, according to data released Friday.
Signs that the labor market remains tight will draw more attention to consumer inflation data released this week. That's because high inflation numbers could reinforce the Fed's message that interest rates should remain moderate and high in the short term. It's longer.
The Consumer Price Index (CPI) report for August showed the highest growth in 14 months due to higher gasoline prices, but the rate of increase in the core inflation rate, which excludes food and fuel costs, was at the lowest level in about two years. became.
The safe-haven US dollar rose in early European trading on Monday as escalating Middle East conflict weighed on risk aversion following this week's strong jobs report.
As of 03:00 ET (07:00 GMT), the dollar index, which tracks the greenback against a basket of six other currencies, was trading 0.4% higher at 106.204.
Dollar demand soared on Monday after militants from the Palestinian organization Hamas carried out deadly attacks in several Israeli cities over the weekend. In response, Israeli airstrikes hit multiple targets in the Gaza Strip, making it the deadliest outbreak of violence in the country in 50 years.
The dollar/yen pair also received support, falling 0.1% to 149.16, but trading range was limited due to Japan's holiday closure. In contrast, the Israeli shekel fell against the US dollar to an almost eight-year low of 3.9230 shekels, and the Bank of Israel announced it would release up to $30 billion in foreign currency in an initial sale. . Foreign exchange to maintain stability.
The move quickly seemed to calm the market as the USD/ILS exchange rate rose 1.8% to 3.9063.
The dollar benefited from the release of better-than-expected jobs data late last week. U.S. employment growth in September was the fastest in eight months, according to data released Friday.
Signs that the labor market remains tight will draw more attention to consumer inflation data released this week. That's because high inflation numbers could reinforce the Fed's message that interest rates should remain moderate and high in the short term. It's longer.
The Consumer Price Index (CPI) report for August showed the highest growth in 14 months due to higher gasoline prices, but the rate of increase in the core inflation rate, which excludes food and fuel costs, was at the lowest level in about two years. became.
