From Marc to Market:
The US dollar is narrowly mixed against most of the G10 currencies. The notable exception is the Japanese yen, which is around 1.25% lower today. To be sure, the Bank of Japan lifted its overnight rate, as widely expected, and Governor Ueda seemed to signal a faster pace on policy adjustment. Still, the decision was made on a 7-2 vote, and the odds of a December move were trimmed, though still above 80%. Meanwhile, the PBOC continued to signal acceptance of a stronger yuan and fixed the dollar lower for the eighth consecutive session, and to a new three-year low. President Trump and Xi meet next week but other issues than foreign exchange, like trade, AI, and the war in Iran are arguably more salient.
Two German states hold elections this weekend and the AfD is running strong in one. Coalitions take time to work out and the election a couple of weeks ago in Saxony-Anhalt has not yet resulted in a new government, which could take another week....
....MUCH MORE
