It’s been a quiet one to start the new week and with it being a partial holiday in the US, that should also make for a slower session later on. The big news so far is still the surprise attacks by Hamas on Israel, leading to plenty of uncertainty in the Middle East at the moment. The latest is Israel calling for Chevron to shut down natural gas production at its Tamar platform amid safety concerns. The conflict is leading to plenty of anxiety all around for now.

S&P 500 futures are still down 0.6% and not much changed since the opening gap lower today. Meanwhile, European indices are keeping in the red but not much worse than their opening losses as well.

In FX, the dollar and yen continue to stay more bid with EUR/USD down 0.5% to 1.0530 and AUD/USD down 0.3% to 0.6360 currently.

It seems like markets are just waiting for this to quickly pass and get back to the usual business order before we get to the US CPI data later in the week.

This article was written by Justin Low at www.forexlive.com.