• Crude Oil struggles to hold onto $70.00, with more downside expected. 
• Traders expect sluggish demand in the long term as markets reprice Fed rate cut prospects. 
• The US Dollar Index looks set for more upside after breaking above 103.80 and tested 104.00.

Crude Oil sees its two-day surge halt on Wednesday after the American Petroleum Institute (API) reported a larger-than-expected increase in US stockpiles. In the Middle East, Secretary of State Antony Blinken urged Israel to avoid further escalating the conflict within Iran. Blinken said in Tel Aviv that there is an opportunity for a hostage agreement, according to Bloomberg. This takes the sting out a bit from the recent developments between Israel and Iran. 

The US Dollar Index (DXY), which tracks the performance of the Greenback against six other currencies, is picking up a nudge and has broken above 104.00. Markets are starting to position for the most eventful week of this financial year with the US presidential election on November 5 and the Federal Reserve’s (Fed) interest-rate decision on November 7. The King Dollar seems to be returning to the scene while traders and investors trim their exposure on bonds and equities, fleeing to the Greenback.