Weak U.S. consumer confidence, particularly concerning the labor market, has fueled speculation that the Federal Reserve might cut interest rates by another 50 basis points (bp) during its November meeting. This expectation has weighed heavily on the dollar. In contrast, both the British pound and Australian dollar have risen to 2 1/2-year highs. U.S. stock index futures are showing a bearish tone, while bonds are also trading lower.
Gold remains stable after hitting a record high of just above $2,670. Meanwhile, November WTI crude is consolidating around $71 after touching $72.40 yesterday, its highest point since early September.

Asia-Pacific Markets
Government energy subsidies helped push Australia's monthly inflation back within the Reserve Bank of Australia's (RBA) 2-3% target range, but markets and policymakers largely dismissed this as a temporary effect. The RBA maintained its policy rate at 4.35% during its latest meeting. Following a brief dip after the central bank’s decision, the Australian dollar rebounded and strengthened through much of the North American session. It briefly traded above $0.6900 today, reaching its highest level since February 2022.
The U.S. dollar, which had peaked at around JPY144.70 during the Asia-Pacific session yesterday, trended lower throughout the day, eventually slipping below JPY143.40 by the European close and nearing JPY143.20 by the North American session. It found some support just below JPY143 early today before recovering toward JPY144.

European Markets
Sweden's Riksbank delivered the expected 25 bp rate cut, lowering its policy rate to 3.25%. This marks the third rate reduction in the current cycle that began in May. The central bank signaled the possibility of further rate cuts and hinted that a 50 bp cut could be on the table.
The euro traded firmly, though it remained confined within its recent range, fluctuating between $1.1070 and $1.1190 over the past eight trading sessions. Today, it inched closer to $1.12 without breaching it.
The British pound surged above $1.34, marking the culmination of a two-week, four-cent rally. It settled above its upper Bollinger Band for the fourth consecutive session, touching a marginal new high near $1.3430 today.

American Markets
In the U.S., new home sales for August will be reported later today. After a sharp 10.6% increase in July, the market expects a slight pullback, with forecasts suggesting that around half of those gains will be reversed. While new home sales data typically have a limited impact on capital markets, today’s focus may shift to the eight scheduled speeches from Federal Reserve officials, including Chair Jerome Powell. However, Powell’s remarks, set for the 10th annual Treasury Market Conference, will be pre-recorded.