Mitsubishi UFJ Bank Global Markets Research Senior Currency Analyst for Europe, the Middle East, and Africa, Lee Hardman, stated: "Verbal intervention by Japanese policymakers has helped to provide temporary support for the yen." Japan's Chief Currency Diplomat, Atsushi Mimura, said: "Japan's Finance Minister Kato and U.S. Treasury Secretary Yellen discussed recent exchange rate trends in a bilateral meeting and confirmed that they will continue to communicate closely." Mimura stated: "Our view is that there is a clear one-sided and rapid trend, and we are closely monitoring currency movements, including speculative transactions, with a stronger sense of urgency." Mitsubishi UFJ's analyst Lee Hardman indicated that these remarks sent a clear warning signal to market participants that Japan is prepared to intervene again to support the yen if it continues to weaken as it has done so far this month. This election is considered crucial for the performance of the U.S. dollar against the yen and the broader U.S. dollar.
Additionally, the United States will release the October non-farm report this Friday. Market analyst Lucia Mutikani said that the strike by aerospace and hotel employees is expected to lead to a decrease of 41,000 in October non-farm employment. The U.S. Department of Labor's monthly strike report showed that 33,000 Boeing employees in California, Oregon, and Washington were not working during the employment survey in October. There are reports that some of Boeing's suppliers are taking vacations or laying off workers, and the impact of Boeing's labor conflict on wages may be even greater. The labor market is also expected to be hit again by hurricanes Helen and Milton, with employment expected to decrease by up to 40,000 in October. Preliminary survey results targeting economists estimate that non-farm employment in October increased by 125,000, significantly lower than the 254,000 in September. The U.S. unemployment rate in October remained unchanged at 4.1%. Economists believe that Federal Reserve officials will ignore the October employment report when they meet on November 6th and 7th.
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Today's data to watch includes the UK's October CBI retail sales difference and the U.S. October Dallas Fed Manufacturing Activity Index.
Gold/USD
Last Friday, gold fluctuated and moved upwards, closing slightly higher on the daily chart. In addition to the continued support for gold from the Federal Reserve's interest rate cut expectations, concerns about tensions in the Middle East are also an important factor supporting the rise in gold. In the Asian morning session, affected by the easing of tensions in the Middle East, gold opened lower and is currently trading near 2738. Today, focus on the pressure near 2750, with support near 2720.
USD/JPY
Last Friday, the USD/JPY fluctuated and moved upwards, closing slightly higher on the daily chart, and is currently trading near 153.30. In addition to the strong support for the exchange rate from the rise in the U.S. dollar index due to good economic data and other favorable factors, the impact of the dovish remarks by Bank of Japan Governor Haruhiko Kuroda, which led to a cooling of expectations for a rate hike by the Bank of Japan, is also an important factor supporting the rise in the exchange rate. Today, focus on the pressure near 154.00, with support near 152.50.
USD/CAD
Last Friday, the USD/CAD fluctuated and moved upwards, challenging the 1.3900 level and setting a new 11-week high, and is currently trading near 1.3890. In addition to the continuous rise in the U.S. dollar index, supported by good economic data and a cooling of expectations for further substantial interest rate cuts by the Federal Reserve, being the main reason for the rise in the exchange rate, the dovish signals released by the Bank of Canada and the weak economic data from Canada during the session also provided some support for the exchange rate. Today, focus on the pressure near 1.4000, with support near 1.3800.
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