| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | United Kingdom | PSNB, bln | September | -13.02 | -10.3 | -16.61 |
During today's Asian trading, the US dollar declined slightly against major currencies, but remained near the highest level since August 2, reached yesterday amid expectations that the Fed will take a balanced approach to easing monetary policy.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.13% to 103.87. Yesterday, the index rose by 0.52%, helped by a significant increase in US bond yields. In addition, four Fed policymakers expressed support for further rate cuts, but disagreed on how quickly and by what amount rates should be cut. According to the CME FedWatch Tool, markets see a 87.0% probability of a 0.25% rate cut at the November meeting (down from 97.0% a week earlier) and a 65.3% probability of a 0.25% rate cut in December (compared to 85.5% a week earlier), with a 0.41% rate cut expected by the end of the year. In addition to the Fed's policy, investors are also closely monitoring developments around the US presidential election, which will be held on November 5. The growing chances of Donald Trump's victory strengthen the dollar, as it is believed that his proposed tariff and tax policy is likely to keep interest rates high in the United States. The election, though, remains tight and too close to call and analysts expect volatility as investors position in the run-up to the results.
The yen consolidated against the US dollar after hitting its lowest level since July 31 earlier today. Experts said that rising U.S. bond yields have put significant pressure on the yen, which is extremely sensitive to treasury bond movements. The yen's weakness came at a time when Japan is about to hold general elections (October 27). While opinion polls vary on how many seats the ruling Liberal Democratic Party (LDP) will win, markets have been optimistic that the LDP, along with junior coalition partner Komeito, will prevail.