In the NY market, the focus will be on September US existing home sales as investors assess the impact of Middle East risks and higher crude oil prices. The dollar-yen pair is expected to remain soft, although downside is seen as limited.
In the NY market on the 13th, the dollar is expected to remain soft, although downside is likely to be limited, amid heightened tensions in the Middle East and persistently high crude oil prices. The market is focused on September existing home sales, a key indicator of the US housing market, with the impact of persistently high mortgage rates on transactions also in focus.
The dollar-yen pair opened at ¥158.14, the euro-dollar pair at $1.1196, the euro-yen pair at ¥176.90, the pound-dollar pair at $1.3250, and the dollar-Swiss franc pair at CHF0.8325. In the crude oil market, NY crude oil futures remained high at around $92.24, having recovered after briefly falling to the $89 range following reports of a supply agreement between President Trump and President Putin.
In the Middle East, an airport in the Saudi capital was attacked, resulting in casualties. The attack was attributed to an armed group in Yemen, and concerns over crude oil supplies could intensify if the conflict spreads to neighboring countries. Uncertainty over crude oil supply and demand could affect prices.
Attention is also focused on comments from Fed officials. Cleveland Fed President Hammack said that interest rates need to rise but that the timing remains open-minded, while expectations for a rate hike from June onward have been receding. President Musalem also indicated that a rate hike could be possible within the next 6 to 9 months, while saying that he would approach the October FOMC with an open mind.