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The US Dollar Index (DXY), which measures the value of the US Dollar (USD) against six major currencies, is gaining ground after recovering recent losses from the previous session and trading around 99.00 during the Asian hours on Thursday.

Former Bank of Japan Executive Director Maeda thinks market pricing for the Bank of Japan isn’t hawkish enough.

He says the BOJ is likely to raise rates in either December or January. That contrasts with market pricing at 45% for December and 73% for January. He then sees a further hike to 1% some time around summer of 2026.

The peak of the BOJ strip is at 0.91% for next July.

At the moment, the market is trying to suss out how proactive new PM Takaichi will be in leaning on the BOJ to keep rates low. At the same time, politically she is vulnerable to concerns about rising inflation.

This article was written by Adam Button at investinglive.com.

As big tech companies like Meta acquire AI startups, many employees are not receiving the cash-out riches they dreamed about, but a layoff instead.

The Australian Dollar (AUD) advances against the US Dollar (USD) on Thursday after US President Donald Trump said that he thinks something will work out with China in a meeting scheduled with China’s Xi Jinping in South Korea.

The yen is the early loser in today’s FX trade as the slump that started with the LDP selection of Sanae Takaichi continues. There was initially a sharp drop in the yen (i.e. a rise in USD/JPY) after the October 6 selection but that tempered as she initially struggled to form a government followed by some generalized risk aversion.

The risk mood has since stabilized and Takaichi forged a government. Now the market is focused on her priorities around boosting fiscal spending while restraining the BOJ from hiking rates.

I suspect we are on our way to a test of the October high.

This article was written by Adam Button at investinglive.com.

South Korea’s central bank kept its benchmark interest rate unchanged at 2.5% for the fourth consecutive meeting.

The USD/CAD pair posts modest losses near 1.3990 during the early Asian session on Thursday. The Canadian Dollar (CAD) strengthens against the US Dollar (USD) on a rise in crude oil prices.

South Korea BoK Interest Rate Decision in line with expectations (2.5%)

Canadian Prime Minister Mark Carney said that the decades-long process of an ever-closer economic relationship between the Canadian and US economies is over, Reuters reported on Thursday. 

• Prior was +1
• Confidence +2 vs 0 prior

This index fell to a post-pandemic low in May but has recovered back to May 2024 levels since.

The quarterly Australia NAB Quarterly Business Survey offers a detailed snapshot of business conditions and sentiment across sectors, providing richer insights than the usual monthly release. It tracks indicators like profitability, capacity utilization, costs, and forward orders to gauge economic momentum and inflation pressures. Markets rarely move on it but it can flag turning points in growth so today’s bounce might be notable.

This article was written by Adam Button at investinglive.com.