Yesterday, market mood-maintained risk-off as tensions in the Middle East escalated. The dollar’s appeal as a safe haven increased when Iran launched a ballistic missile attack on Israel, and the US threatened with severe repercussions.
On the data front, the flash reading of Eurozone HICP inflation fell to 1.8% in September, as expected. Core-HICP edged down to 2.7% from 2.8%. However, service inflation remained elevated, at 4% for the month.
Meanwhile, the US manufacturing ISM remained constant at 47.2 in September. However, the statistics had little effect on market sentiment yesterday.
Currency-wise, despite the risk-averse tone on markets, the dollar was firmly in the ascendancy. The dollar gained almost 0.6% against the euro and the pound. Elsewhere, the yen was higher, benefiting from safe-haven demand.
Looking ahead for the day, the macro data calendar appears to be pretty calm. The primary report will be the Eurozone unemployment rate for August. It is expected to remain at its all-time low of 6.4% throughout the month.
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