Dollar Weakens Slightly, Yen Gains—All Eyes on the Fed & BoE
The US dollar weakened slightly against G10 currencies on Thursday, while US government bonds strengthened. Investors await the US Supreme Court's ruling on President Trump's tariffs and comments from several Fed officials. Bloomberg Dollar Spot fell 0.1%, halting a five-day rally, while the 10-Year US Treasury yield fell 1 bps to around 4.15%.
The dollar weakened most against the yen after Japanese wage data showed faster cash income growth—strengthening the case for BoJ policy normalization. Bets on Polymarket that the Fed will uphold Trump's tariffs fell to ~25% from nearly 50% the day before. With US data delayed due to the shutdown, risk sentiment is the primary near-term driver. On the Fed side, Stephen Miran emphasized that current policy is "too tight" and that interest rates need to be lowered to avoid unnecessary risk-taking.
In the forex market, AUD/USD rose 0.1% to 0.6508; There's a large option strike at 0.6500 (≈A$1.02 billion) expiring on November 6th that could be a price magnet. GBP/USD rose 0.1% to 1.3063 ahead of the Bank of England's (BoE) decision, which is expected to hold interest rates at 4% ahead of the budget announcement—potentially triggering a swift reaction in the pound if the outcome differs from expectations. (az)
Source: Newsmaker.id
