The markets are still on edge. Press reports indicate that US President Biden plans to visit Israel soon, while Iran warns against "multiple fronts" if Israel continues its attacks on Gaza.
Yesterday's dollar bid is now higher. Capital markets remain relatively quiet. The Swiss Franc, the G10's strongest currency last week, is slightly stronger today.
Gold is holding steady, but still within yesterday's ranges. It also remains below the $1933 level that was reached at the end last week.
WTI briefly fell below yesterday's low of $85 but recovered to the opening range near $85.70.

Asia Pacific
Japan's third-largest economy is suffering despite its easy monetary and fiscal policy. Remember that the economy would have shrunk in Q3 without tourism. The consumer spending and private investments have both decreased. Imports are also stronger and exports look weaker.
The dollar has not changed much against the yen despite the 14-bp increase in US 10-year rates between yesterday and today. It is still below the highs of last week, just below JPY149.85.

The Australian dollar has recovered well from the drop in value that occurred during the second half last week. It is the only G10-currency to post small gains today against the US Dollar.

Europe
The mood in Germany is still fragile. The economy contracted both in Q4 22 as well as Q1 23. In Q2 23, the economy was stagnant. It appears to have contracted during Q3, and is likely to contract this quarter. According to the ZEW survey, current assessments continued to deteriorate.
The euro reached a new high of $1.0565 late in the North American sessions.

The UK job data was not encouraging. Payrolls fell 11k after falling for two consecutive months. The Bank of England will meet on November 2, a day after the FOMC.
Today, sterling has been sold at $1.2150 and held below $1.2220.

America
Today, the real sector will be highlighted with September retail sales data, industrial production and business inventories. The August TIC will be released late in the session. Through July, foreign investors bought US stocks and bonds worth a total of nearly $500 billion. This is down from the $876 billion in the first seven-months of 2022.

The CPI for September in Canada will influence expectations at the Bank of Canada's meeting next week.
Yesterday, the US dollar fell from a high of CAD1.37 on Thursday to CAD1.3605. Today, it has firmed up to test the area of 1.3645.