The US dollar steadied today after a sharp advance yesterday. Among major currencies, the yen stands out as the strongest G10 performer, rising roughly 0.15% after Japan’s finance minister issued cautionary remarks. In contrast, Norway’s krone weakened about 0.35% following softer inflation data, marking the slowest pace in four months. In China, following the end of a long national holiday, authorities unveiled new measures including expanded export restrictions on rare earth and EV battery technologies, alongside a levy on US vessels docking in Chinese ports.

Asia Pacific Markets

The yen gained strength as Japan’s Finance Minister Kato warned against “excessive” currency volatility, hinting at potential intervention. Political shifts added intrigue as the coalition between the LDP and Komeito collapsed, coinciding with Takaichi’s rise as LDP leader and likely next prime minister.
Meanwhile, the Australian dollar struggled, sliding below recent lows after heavy selling near $0.6610. Traders now focus on the $0.6500–0.6520 zone as the next key support area.

European Markets

The euro extended its decline to near $1.1540, its weakest level since early August, weighed down by technical selling and soft industrial data from Italy, Spain, and Germany. Meanwhile, attention in Europe turned to bond markets as calm returned to French debt, with investors awaiting Moody’s review of Belgium’s credit rating.
Sterling also came under pressure, sliding to $1.3280 after breaching key September lows. The move triggered technical concerns, with analysts eyeing possible declines toward $1.3140 or even $1.2945 if momentum continues.

American Markets

The Dollar Index surged yesterday to 99.60, its highest level since early August, before stabilizing. Technical indicators suggest potential for a further move, though this remains uncertain. Market sentiment remains shaped by expectations of Federal Reserve rate cuts—one anticipated later this month and another possibly in December.