[MARKET ANALYSIS] DXY strengthens amid weakness in global peers despite the unwinding of Fed rate hike bets

DXY: +0.3%

• Strengthens to start the week and reclaimed the 102.00 status after rebounding from the post-NFP dip as the greenback benefits from the weakness in its major counterparts, despite the unwinding of October Fed rate hike bets. There were few fresh macro catalysts over the weekend, although there were previous comments from Fed's Goolsbee, who stated that there is plenty of room for anything on the table as far as a rate hike or pause and that he won't rule out any decision at the next rate meeting, while Treasury Secretary Bessent downplayed concerns over the recent rise in yields and stated that it was in line with global trends.

EUR/USD: -0.3%

• Trickled lower overnight to its weakest since May last year, with the single currency not helped by the unrest in France, where student protests in Paris have forced hundreds of schools to fully or partially close up to 500 schools, while the bloc also faces headwinds from trade-related frictions with China launching an anti-dumping probe into European chemical exports in a tit-for-tat following similar investigations launched by the EU last week.

GBP/USD: -0.2%

• Mildly softened but is off last week's worst levels after rebounding from a brief dip beneath the 1.3200 handle, while there is a lack of tier-1 data releases scheduled for the UK this week.

USD/JPY: Flat

• Lacks conviction in the absence of any FX-moving catalysts or data to start the week, while comments over the weekend from Japanese Finance Minister Katayama did little to shift the dial, in which she stated that the FX trend has changed somewhat since the joint FX intervention was announced, and US Treasury Secretary Bessent has questioned whether the Japanese government has been sending a unified message to the markets.

Antipodeans: AUD/USD -0.2% / NZD/USD -0.5%

• Began the week on the backfoot with underperformance in NZD/USD in a resumption of the weakening trend seen since late August, with the pair dipping to sub-0.5600 territory.