Yen firms after less dovish BOJ, dollar dips ahead of inflation data
Yen firms to as much as 151.92 per dollar
Euro unchanged after the bloc's strong Oct inflation data
Sterling rises on higher for longer rate view
Dollar edges lower ahead of PCE data
Updates at 1025 GMT
By Brigid Riley and Medha Singh
TOKYO/LONDON, Oct 31 (Reuters) -The yen firmed on Thursday after the Bank of Japan took a less dovish tone than expected while the U.S. dollar ticked lower ahead of jobs data later this week and the U.S. presidential election next week.
The dollar was last down 0.6% on the Japanese currency at 152.360 yen JPY=EBS as the BOJ maintained ultra-low interest rates but said risks around the U.S. economy were somewhat subsiding, signalling that conditions are falling into place to raise interest rates again.
Governor Kazuo Ueda's remarks were seen as less dovish than those made before the meeting that the BOJ could "afford to spend time" scrutinising the fallout from risks such as U.S. economic uncertainties.
The BOJ cut its core consumer inflation forecast but said risks were skewed to the upside for that year, causing the yen to rise, said Andrea Cicione, head of strategy at GlobalData.TSLombard.
"This was a deliberate comment by the BOJ to stop this weakening in the yen that has been going on for six weeks."
The Japanese currency has taken a beating, down around 6% for the month as the dollar and U.S. Treasury yields have hovered around their highest since July.
Japan's political shake-up has only added to the yen's woes, heightening uncertainty about the country's fiscal and monetary policy outlook.
The yen also firmed on other currencies on Thursday with the euro down 0.5% at 165.7 yen. EURJPY=EBS
Elsewhere, sterling GBP=D3 firmed 0.3% to $1.2995, a day after Britain's finance minister Rachel Reeves' launched the biggest tax increases since 1993 in her first budget. The big-spending plans prompted traders to bet on fewer interest rate cuts by the Bank of England.
The euro EUR=EBS edged 0.2% higher to $1.087325 after data showed the bloc's inflation accelerated more than expected in October.
The report follows better than expected third-quarter euro zone GDP data on Wednesday that bolstered bets against a larger interest rate cut by the European Central Bank in December.
The dollar index =USD, which measures the currency against six major rivals, dipped 0.1% to 103.94, after its recent surge put it on pace for its biggest monthly gains against peers since April 2022.
JOBS, ELECTION IN FOCUS
All eyes were on data on the U.S. Personal Consumption Expenditures (PCE) Price Index for September on Thursday and the closely-watched nonfarm payrolls report on Friday.
Economists polled by Reuters estimate 113,000 jobs were added in October, although the number could be lower due to recent hurricanes.
But the jobs report may find itself overshadowed in the run-up to the U.S. presidential election on Tuesday.
"A slightly hotter or slightly cooler (jobs) number to me probably doesn't change the dial too much given the upbeat trend in recent economic data," said IG Market Analyst Tony Sycamore.
"It makes sense to me to be ... taking some risk off and moving to the sidelines" ahead of a week that will "set the tone for the end of the year," he said.
Some investors have been putting on trades betting Republican candidate Donald Trump will win, helping to lift the dollar and U.S. Treasury yields, although he is still neck and neck with Vice President Kamala Harris in several polls.
Trump's plan to implement tax cuts, looser financial regulations, and higher tariffs are seen as inflationary and could slow the Federal Reserve in its policy easing path.
In cryptocurrencies, leading token bitcoin BTC= last fetched about $72,260, after pushing as high as $73,609.88 on Tuesday.
World FX rates https://tmsnrt.rs/2RBWI5E
Reporting by Medha Singh and Brigid Riley; Editing by Christopher Cushing, Jacqueline Wong and Emelia Sithole-Matarise
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.
