Dollar Under Pressure as Markets Await NFP Report Amid EU Diesel Release Proposal
The US dollar index (DXY) is under mild pressure as markets await the release of the nonfarm payroll (NFP) report, which is expected to show a gain of 90k jobs in September.
The energy complex has fallen due to reports that the EU discussed a proposal to release diesel from stockpiles. Brent crude oil prices fell by 3.2% and European gasoil futures dropped by 5.5%. The news weighed heavily on energy stocks, particularly those with exposure to Greater China.
Nike's downbeat earnings report also contributed to the decline in US equity futures, as shares fell 8.6% after hours. However, overall US market sentiment remains positive ahead of the NFP release.
The Japanese yen has gained ground due to hotter-than-expected Tokyo CPI, with investors seeking safe-haven assets amidst the uncertainty surrounding global energy markets.