Global Market Snapshot 28th October 2024

This week, in the global foreign exchange market, the U.S. dollar continued to strengthen, while the Japanese yen rebounded ahead of the election. In contrast, the euro and the British pound came under pressure due to economic data shocks. Overall, the rise in the U.S. dollar index led to adjustments in major currencies, and the strong performance of U.S. economic data cooled market expectations for Federal Reserve rate cuts, further boosting the dollar.

The U.S. Dollar Index showed strong performance this week, rising by 0.74% cumulatively and is on track to increase for the fourth consecutive week. On last Friday, the dollar rose 0.18% against various currencies, reaching 104.24 points. U.S. corporate spending data exceeded expectations, easing market expectations of a Federal Reserve rate cut and further enhancing the dollar’s appeal.

USDJPY This week, the Japanese yen rose 0.36% against the U.S. dollar, reaching 153.61 yen. As Japan holds its House of Representatives election on Sunday, the Bank of Japan faces new policy pressures, and market demand for the yen has increased. Analysts generally believe that if Japan’s ruling Liberal Democratic Party loses its dominant position in the election, it could complicate the central bank’s policy plans. The market expects that the Bank of Japan may adopt a more hawkish stance to address yen depreciation and the uncertainties stemming from U.S. economic growth.

EURUSD This week, the euro fell 0.42% against the U.S. dollar, reaching $1.078. Although Germany’s business confidence index has improved, the overall economic performance of the eurozone has yet to make a significant breakthrough. European Central Bank President Christine Lagarde stated that eurozone inflation is on track to reach its target next year. Analysts indicate that the ECB is unlikely to adjust its policy in the short term, maintaining low interest rates to support economic recovery.

GBPUSD This week, the British pound fell 0.02% against the U.S. dollar, reaching $1.2969. The Bank of England faces challenges in addressing inflation, while domestic economic data has failed to provide sufficient support for the pound. The data has not shown a clear rebound in UK economic activity, adding to market uncertainty regarding future economic policy in the UK. Investors generally expect that the Bank of England will find it difficult to significantly raise interest rates in the short term, which will limit the pound’s upside potential. Additionally, weak global trade and demand are major factors weighing on the pound’s performance.

USDCAD The Canadian dollar edged up against the U.S. dollar this week, supported by a rise in Brent and WTI crude oil prices. As a major oil-producing country, Canada is expected to see improved export revenues, providing some support for the Canadian dollar. The strengthening oil prices have driven expectations of improved export earnings for Canada, keeping the Canadian dollar resilient. Analysts note that the Canadian economy remains highly dependent on oil prices, although a stronger U.S. dollar may limit the loonie’s upside, the Canadian dollar is likely to continue benefiting in the short term with oil price fluctuations.

BTC The price of Bitcoin has adjusted downward, retreating to around $67,800.