Canada Deal and peace in the Middle East – Market wrap for the North American session - October 8

[Redator]

Log in to today's North American session Market wrap for October 8

Today's session saw the continuation of the weekly flows, with the US Dollar higher and Gold breaking new milestones. The US-Canada deal seems to be getting closer from the recent remarks made by Canada's Carney.

US Equities sparked a huge reversal higher with both the S&P 500 and Nasdaq closing at record highs, yet again.

Nothing really explained yesterday's risk-off session, therefore dip buyers just came and bought things back.

The Dow remains a lagger throughout this week after showing just a wick above the 47,000 threshold.

In geopolitics, Trump mentioned in a roundtable talk that Middle East discussions are going towards the right direction and the US President should head to Egypt to finalize the Deal.

You can read more about the Deal right here.

The Royal Bank of New Zealand also surprised Markets with a 50 bps Jumbo cut (which was 50% priced in ahead of the decision).

The news got followed with a huge selloff for the Kiwi before markets started to price out cuts later in 2026. A larger cut tends to generate higher economic prospects and future expectation expectations.

Hence, the NZD still recovered most of what it had lost. You can access more on the rate decision here.

Read More:

• North American mid-week Market update – US-Canada deal approaching
• Who said that the USD and Gold can't rally together?
• Weakness showdown: NZD vs JPY in the FX markets

Cross-Assets Daily Performance

Cross-Asset Daily Performance, October 8, 2025 – Source: TradingView

When looking at this daily asset picture, one may ask himself: If everything is going up, then what is giving ?

The answer is in the Yen getting absolutely killed this week (take a look at USDJPY, catastrophic!). The CHF is also getting sold off quite aggressively with more dovish talks from the SNB – Carry trades are getting put back aggressively from what it seems.

This makes even more sense when looking at the huge rallies in Crypto and Equities around the world.

Kudos to the European Indices which are brushing off the usual French government mess ups and are rallying strongly nonetheless.

A picture of today's performance for major currencies

Currency Performance, October 8 – Source: OANDA Labs

FX volatility is back strong!

Look at the huge recovery in the NZD, something to keep an eye on and remember.

Apart from that, weekly flows are continuing with the AUD still gaining (very consitent performer of the past month) with the CAD and USD just following each other.

As mentioned just before, both the CHF and JPY are getting sold off aggressively in what could be a return of the Carry Trade.

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 next 24 hours in markets will be dominated by central bank chatter.

The daily session concludes with a trio of Fed speakers — Kashkari, Barr, and Kashkari again — followed by Australia’s Consumer Inflation Expectations (20:00 ET).

Thursday should be busier, even with the absence of US/BLS data : the ECB’s Meeting Accounts (07:30 ET) open the European session, followed by Fed Chair Powell at 08:30 ET, the US Jobless Claims, and a long lineup of Fed officials including Bowman, Barr, and Daly.

Across the Pacific, traders will also watch New Zealand’s Business NZ PMI and a key speech from RBA Governor Bullock (18:00 ET) for clues on regional policy direction.

Safe Trades!

Follow Elior on Twitter/X for Additional Market News, interactions and Insights @EliorManier

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© 2025 OANDA Business Information & Services Inc.