investingLive Asia-Pacific FX news wrap: Gold lower on Trump-Israel-Hamas deal

• Hedge funds bet on year-end dollar rally as euro, yen weaken. Funds build tactical FX bets
• European Central Bank minutes due Thursday, Lane speaking later
• Federal Reserve Chair Powell speaks on Thursday. Bowman, Barr, Musalem, Kashkari, Daly too
• AUD traders heads up: Reserve Bank of Australia Governor Bullock speaks on Friday
• Heads up for Bank of England’s Catherine Mann to speak Thursday
• Bank of Canada Senior Deputy Governor Carolyn Rogers speaks on Thursday
• PBOC sets USD/ CNY reference rate for today at 7.1102 (vs. estimate at 7.1484)
• China’s Commerce Ministry tightens rules on rare earths exports
• BOJ will find another rate hike this year difficult, says ex-deputy governor
• Australia Consumer Inflation Expectations are rising: October 4.8% (prior 4.7%)
• US politics shut down thaw? Senate Republicans eye piecemeal government reopening
• Israel cabinet to vote Thursday; hostages could start being freed Monday, White House says
• Goldman Sachs says tech rally not a bubble, yet, but warns valuations are stretched.
• Fox: “Hamas accepts Trump peace plan ending 2 years of war in Gaza, returning hostages”
• UK housing market, business confidence slump ahead of Reeves’ November budget
• Trump says Israel and Hamas have both signed off on the first Phase of our Peace Plan
• Square launches Bitcoin payments, urges tax break for everyday crypto use
• Yen intervention risk rockets higher as USD/JPY nears 155 trigger. Line in the sand?
• Goldman Sachs says stocks aren’t in a bubble yet but risks rising
• Trump administration drops plan for tariffs on generic drugs
• Deutsche Bank: Bitcoin and gold could join central bank reserves by 2030
• Standard Chartered warns of a US$1tn deposit flight from EM banks as stablecoins surge
• White House says Trump is going to Walter Reed for his regular physical on Friday.
• Canadian Prime Minister Carney says there’ll some some bilateral deals alongside the USMCA
• France – Macron moves to appoint new PM as France edges away from snap elections.
• Bank of England flags risk of AI-fueled market correction amid rising global uncertainty
• China returns from holidays today – Chinese markets reopen
• investingLive Americas FX news wrap 8 Oct. Spot gold traded above $4000 for the 1st time
• S&P and NASDAQ indices set records once again. Dow industrial average closes unchanged
• French President Macron says is a potential path to a government budget by December 31

The standout development of the session was the Phase 1 agreement reached between Israel and Hamas, marking a tentative step toward easing the war in Gaza. The deal covers a hostage-prisoner exchange and a partial Israeli military withdrawal from the Strip, a welcome if limited sign of progress.

Gold drifted lower ahead of the announcement, slipping further after President Trump posted details of the deal on his social media site, before stabilising just above US$4,000. The metal has since recovered to around US$4,024. Oil prices also softened on optimism that the truce could hold, while the U.S. dollar weakened broadly.

Chinese mainland markets reopened after the long Golden Week holidays. In Beijing, the Commerce Ministry (MOFCOM) announced new export controls on rare-earth materials, requiring foreign entities to obtain approval to safeguard national security and interests.

Asia-Pac
stocks:

• Japan
  (Nikkei 225) +1.37%
• Hong
  Kong (Hang Seng) -0.1%
• Shanghai
  Composite +1.2%
• Australia
  (S&P/ASX 200) +0.2%

This article was written by Eamonn Sheridan at investinglive.com.