Safe Havens Outperform In Early Asia Pac Trade

Risk appetite is on the back foot in G10 FX markets in the early part of Monday Asia Pac trade. The market is reacting to weekend developments in Israel, after the surprise attack from Hamas.

• Only safe havens the yen and Swiss Franc are firmer against the USD as this stage. USD/JPY tracks back close to 149.10 (we closed on Friday in NY near 149.30).
• AUD/USD is back to 0.6360, off 0.40% from NY closing levels on Friday. Dips towards 0.6355 have been supported though. NZD/USD is last near 0.5965/70, off by a similar amount. EUR/USD is down 0.30% to 1.0550/55.
• Markets will be gauging risks around escalation of the conflict. A short while ago headlines crossed from the WSJ that "Iran helped plot attack on Israel over several weeks".
• The same article states "U.S. officials say they haven't seen evidence of Tehran's involvement. In an interview with CNN that aired Sunday, Secretary of State Antony Blinken said: "We have not yet seen evidence that Iran directed or was behind this particular attack, but there is certainly a long relationship. (see this link for more details) "
• Focus will be oil's reaction, along with US equity futures. Note there is no US cash Treasury trading today due to a US holiday, but futures will still trade.