Risk-off flows two years after the massacre – Market wrap for the North American session - October 7

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Log in to today's North American session Market wrap for October 7th

Today commemorates the second anniversary of the tragic massacre when Hamas soldiers invaded Israel, killing, raping, and kidnapping more than a thousand civilians.

Tomorrow will see the biggest meeting of Arab leaders regarding implementing the Trump 20-point Plan, which would impose a ceasefire and achieve a process towards peace in the region for the time to come.

The meeting will be held in Sharm el-Sheikh, Egypt, and will include the highest diplomatic delegates from Qatar, Turkey, and Egypt.

US Middle East envoy Steve Witkoff will also participate in the meeting and recently landed in Egypt.

Turning back to Markets, the cause for these flows isn't known yet, but risk assets saw consequent rejection in today's session, which even caught Gold and Silver in its crosshairs.

Some dip-buying mean-reversion higher did lighten sentiment towards the close, but such flows heighten volatility and may scare highly leveraged participants.

After suffering strong drops, Bitcoin rallied more than $1,000 from its daily lows, and US indices have followed suit.

Recovering above all the preceding peaks would put sentiment back on its high pedestal, but traders might be cautious in the waiting for more data and eventually a re-opening of the US Government.

The US Dollar has surprisingly been a big winner of the week, which may have had to play with today's flows (Stops kicking? More to come?)

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Cross-Assets Daily Performance

Cross-Asset Daily Performance, October 7, 2025 – Source: TradingView

The picture is largely different from yesterday, with Cryptos correcting back sharply from their previous session rise.

Gold still finishes up in the past 24 hours despite failing to reach the $4,000 level.

Everybody have been mentioning the $4,000 milestone as evident, and reaching it is still of high probability, but markets are such that when something looks obvious, it ends up not happening the same way players expect it.

Both Silver and Platinum however are seeing some rejection of their higher levels.

For the rest, the US Dollar and US Treasuries did see quite some inflows in today's session and their rise is something to monitor for the coming days.

We'll be taking a closer look at the USD tomorrow.

A picture of today's performance for major currencies

Currency Performance, October 7 – Source: OANDA Labs

Today marks another bloody day for the Yen as fiscal concerns still arise in the waiting of the upcoming elections.

The only thing saving a nasty outlook for the Japanese currency would be Takaichi sending more hawkish signs, but that wasn't a big part of her political campaign.

The gold ounce in Yen denomination spiked at ¥600,000 !!

For the rest, North American currencies have made a comeback amid the Trump-Carney meeting that was mentioned in our previous day recap and more direction in USDCAD is sought by traders.

The Euro also took a hit for another session with the ongoing nasty political picture in France and disaccordances between EU Nations (particularly Hungary) regarding Ukraine joining the Union.

A look at Economic data releasing through tonight and tomorrow's sessions

For all market-moving economic releases and events, see the MarketPulse Economic Calendar.

The session is far from over for APAC traders, with the RBNZ meeting split between a 25 bps and a 50 bps call, releasing at 21:00 ET – check our recent preview for the event.

Despite still indicated, Bank of Japan's Governor Ueda has cancelled his speech that was expected to release tonight with Banque de France's Villeroy. He might be preparing bigger remarks and a plan regarding the newly appointed LDP president.

Wednesday will then open with a heavy lineup of ECB and Fed speakers, including Lagarde, Pill, and Goolsbee, before traders turn to the FOMC Minutes (14:00 ET) for deeper insight into the Committee’s latest rate debate.

In terms of pure data tomorrow, we will get Eurozone Industrial Production (02:00 ET) and Australia’s Consumer Inflation Expectations (20:00 ET) to round out a packed 24-hour window, potentially adding volatility to EUR and AUD pairs.

Keep an eye on headlines from the Arab Summit.

Safe Trades!

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