Sustained Expectations for Chinese Policies: Mild Start to the Week in the Forex Market
Today, the Tokyo market is closed for Sports Day, and the US market is also observing Columbus Day, with the bond market closed.
In today’s overseas markets, there are no major economic indicators scheduled for release from countries such as the UK, Europe, the US, and Canada. Instead, the focus will be on emerging market data, including China’s trade statistics for September and India’s Consumer Price Index (CPI) for September.
Key speaking events include remarks from Bank of England’s Dhingra, Bank of France Governor Villeroy de Galhau, and Federal Reserve officials including Governor Waller and Minneapolis Fed President Kashkari. In particular, the market will be watching closely to see how dovish comments from Dhingra and Villeroy de Galhau impact market sentiment.
Market focus is directed toward potential additional economic measures from China. Last week, the Chinese Ministry of Finance held a press conference addressing local government debt issues and stability in the real estate market, hinting at the issuance of special bonds. However, specific figures have not yet been disclosed, and a gradual announcement is expected at the National People’s Congress at the end of October. As a result, the Shanghai Composite Index is showing strength at the beginning of the week, with Hong Kong stocks also stabilizing after declines.
In the forex market, USD/JPY is trading in the low 149 yen range, while EUR/JPY is around 163 yen. Market activity is somewhat subdued, and with the market closures today, a quiet trading environment is likely to continue.
Today, with few standout indicators, the market is expected to remain in a range-bound pattern. However, cryptocurrencies are on the rise, warranting attention for any price movements.
