The US dollar is showing a softer tone, though it remains largely within the boundaries seen in the previous session. The Japanese yen stands out as the only G10 currency not advancing against the dollar, pressured by a surprise rise in unemployment. The Canadian dollar is struggling to benefit from the weaker greenback, staying nearly unchanged. Sterling also lags following downward revisions to September’s PMI, which now sits just above the critical 50 threshold. By contrast, most emerging market currencies are performing better, with indices from JP Morgan and MSCI rising by around 0.2–0.3% this week.

Asia Pacific Markets

The yen’s trajectory has been weighed down by disappointing labor data, as Japan’s unemployment rate unexpectedly climbed to 2.6%, the highest since early 2023, with job-to-applicant ratios also weakening. Meanwhile, the dollar edged higher toward JPY147.80, close to key technical levels. Market participants are also watching the upcoming leadership decision within Japan’s ruling party.
In Australia, the local dollar is hovering near $0.6600, influenced by large expiring options. Although it briefly dipped toward $0.6575, the currency steadied, supported somewhat by revised PMI figures that point to ongoing economic resilience.

European Markets

The euro slipped below $1.17, testing weekly lows near $1.1685 after failing to maintain gains from earlier in the week. A slightly stronger composite PMI provided little encouragement, as industrial output in France fell unexpectedly, while eurozone producer prices turned negative for the first time this year. Reports also indicate the EU may raise steel tariffs to align with US measures.
Sterling, on the other hand, lost momentum after revisiting highs close to $1.3535 earlier in the week. The final September composite PMI was revised downward to just above the contraction line, marking the weakest level since April and curbing near-term optimism.

American Markets

The Dollar Index halted a four-day decline, rebounding toward 98.15 but unable to hold above 98.00 today. The absence of official US employment data due to the ongoing government shutdown has raised concerns, though analysts note that a wide range of private-sector indicators still guide both the Federal Reserve and investors. Surveys, corporate orders, and regional Fed reports provide insights that limit blind spots. Markets await the release of final PMI and ISM services data, with both expected to confirm slowing momentum. Service sector growth is moderating, and employment measures remain stagnant near the neutral 50 mark since June.