Forex Today: Yen takes a hit in Asia, light day ahead

Omkar Godbole FXStreet Contributor

The Japanese Yen ran into a wave of offers in Asia, courtesy of the dovish BOE minutes and pro-easing comments from BOJ Governor Kuroda. USD/JPY hit the highest level since March, EUR/JPY peeped above 133.00 handle, and AUD/JPY moved above the 100-day moving average (MA). Asian equities traded tentatively despite record gains on Wall Street. Japan’s Nikkei outperforming, tracking the weak Yen. Gold remained flat lined around $1270.

Main topics in Asia

BOJ Minutes - Current policy not enough to achieve 2% inflation target

A couple of members expressed doubts about the efficacy of current monetary policy.

BOJ's Kuroda - Still some distance to achieving the 2 pct inflation target

BOJ's Kuroda stressed the need to keep the policy accomodative in order to achieve 2 percent inflation target.

BOJ's Kuroda - May review ETF purchases in futures

BOJ's Kuroda said now is not the time to review the ETF purchases, may do so in future.

USD/JPY trims gains as yield spread remains unchanged despite dovish Kuroda

Stagnant yield spread forced Yen sellers to reconsider their strategy.

President Trump - "Japan has been winning" on trade in recent decades

President Trump talked about US-Japan trade relations.

New Zealand inflation expectations cool - RBNZ survey

RBNZ survey showed fourth quarter inflation expectations cooled slightly.

Key focus ahead

Today's economic calendar is light. Nomura Analysts expect German factory orders (due at 07:00 GMT) to have increased 0.4% m-o-m in September, following a 3.6% m-o-m rise in August. The final German and Eurozone PMI readings for October are due as well, but are unlikely to have a big impact on the common currency. Meanwhile, Sentix investor confidence, due at 09:30 GMT, could move the EUR pairs.

In the US, we have the Fed's senior loan officer survey scheduled for release. The absence of first tier data releases on both sides of the Atlantic means the exchange rates will be at the mercy of the bond yield differential and the broader market sentiment. Yen crosses could put on a good show if the European equity markets remain wel bid.

EUR/USD - Range play to continue?

Upbeat German and Eurozone data may help EUR revisit 1.17 handle, although an upside break would require a bigger catalyst.

EUR/JPY retakes 133.00 handle on dovish BOJ minutes & Kuroda

The offered tone around the Japanese Yen strengthened in Asia, pushing the EUR/JPY to a session high of 133.12 on evidence that talk of need to do more easing is gathering steam at the BOJ.

Key events ahead for the week - Nomura

Analysts at Nomura offered their outlook for this week's key events.

The Week Ahead: Currency Focus Shifts to Australia and New Zealand

Al eyes on the Reserve Bank of Australia (RBA) on Tuesday and the Reserve Bank of New Zealand (RBNZ) on Thursday.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.