| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | Factory Orders s.a. (MoM) | August | 3.9% | -2% | -5.8% |
During today's Asian trading, the US dollar consolidated against major currencies, remaining near its highest level since August 16, reached on Friday amid stronger-than-expected US labor market data and increased demand for safe haven assets due to escalating tensions in the Middle East.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.01% to 102.51. Last week, the index increased by 2.13%, as the latest data indicated the stability of the US economy and reduced the need for another aggressive reduction in interest rates by the Fed. According to the CME FedWatch Tool, markets see a 0% probability of a 0.50% rate cut at the November meeting (compared to 34.7% a week earlier) and a 85.7% probability of a 0.25% rate cut in December (compared to 38.2% a week earlier). Regarding the situation in the Middle East, Israel bombed Hezbollah targets in Lebanon and the Gaza Strip on Sunday. Israel's defense minister also declared all options were open for retaliation against arch-enemy Iran.
The yen briefly fell to its lowest level since August 16 against the US dollar, but then strengthened by 0.2% after falling by 4.6% last week, mainly due to statements by new Prime Minister Shigeru Ishiba, which weakened expectations of further monetary policy tightening by the Bank of Japan.
The New Zealand dollar fell 0.1% against the US dollar, while market participants are preparing for a meeting of the Reserve Bank of New Zealand, the results of which will be announced on Wednesday. The Central Bank is expected to continue its cycle of interest rate cuts and reduce it by 0.5% to 4.75%.