Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
The U.S. dollar remained steady on Tuesday, hovering close to a three-month high, as mixed signals from the Federal Reserve prompted traders to scale back expectations for further interest rate cuts. Investors are also closely watching the Reserve Bank of Australia (RBA) meeting, where policymakers are expected to keep rates unchanged.
The yen weakened to 154.38 per dollar, near its lowest level in over eight months, triggering concerns of possible intervention from Japanese authorities. Meanwhile, differing opinions among Fed officials and a lack of official economic data due to the U.S. government shutdown have fueled uncertainty about the central bank’s policy direction.
After last week’s rate cut, Fed Chair Jerome Powell signaled that it could be the final reduction for the year. Market pricing now shows a 65% probability of another cut in December, down from 94% a week ago, according to CME’s FedWatch Tool. This recalibration in expectations has supported the dollar, with the euro slipping 0.11% to $1.1506 and the British pound easing to $1.312. The dollar index rose 0.1% to 99.99, marking a three-month high.
The shutdown has limited access to key economic data, leaving investors reliant on private reports such as ADP’s employment data. A recent ISM survey revealed that U.S. manufacturing contracted for the eighth consecutive month in October, underscoring economic weakness. Analysts at MUFG warned that prolonged shutdown risks could further dampen growth.
In Asia, the yen’s continued weakness contrasts with the Bank of Japan’s cautious stance, even as Governor Kazuo Ueda hinted at possible tightening later this year. Analysts expect further yen depreciation unless the BOJ acts soon.
The Australian dollar traded around $0.6535 ahead of the RBA meeting. Stronger-than-expected inflation data has reduced expectations for near-term rate cuts, with markets now anticipating only one cut by mid-2026. Economists predict the RBA could strike a more hawkish tone, potentially bolstering the Australian dollar in the coming sessions.
