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The North American trading week kicked off under thin holiday liquidity due to Columbus Day in the United States and Thanksgiving in Canada. While U.S. stock exchanges remained open, the Treasury bond market was closed. The U.S. Dollar gained strength across all major currency pairs, hitting session highs against the Japanese Yen and Swiss Franc, while EUR/USD pressed toward session lows. Crude oil reversed initial Asian losses to trade higher, whereas Gold and Silver faced downward pressure.
Holiday market conditions often lead to subdued trading volumes and narrow price ranges, such as EUR/USD moving within a tight 14-pip band. For active traders, low liquidity increases the risk of false breakouts. Technical follow-through becomes critical to confirm whether current dollar gains represent a sustainable trend or temporary repositioning. Equity index futures presented a mixed picture, with Dow and S&P 500 futures displaying minor gains while Nasdaq 100 futures dropped nearly 96 points.
Looking ahead, market participants should monitor the reopening of the U.S. Treasury market for key yield updates, especially after the 10-year yield touched multidecade highs near 5.365% late last week. For Gulf and regional investors, firming oil prices provide underlying support, though currency swings tied to the strong dollar may affect regional import costs and peg dynamics.
