The US Dollar remains supported early this week, bolstered by Euro weakness and rising global bond yields, amid market expectations that the Federal Reserve will hold interest rates steady in October, according to FX Street (ING). While recent ISM services data showed slight hawkishness, it has not shifted the consensus toward a rate hike.
US equity futures advanced during European trading on Tuesday, with Dow Jones futures up 0.47% near 51,800, S&P 500 futures rising 0.24% to around 7,840, and Nasdaq 100 futures gaining 0.27% to about 31,400, FX Street reported. Despite a pullback in October Fed hike expectations, gold prices remain subdued due to firm US Dollar strength and rising long-end US Treasury yields, noted OCBC via FX Street.
For Japanese investors, these developments highlight continued US dollar resilience and equity optimism ahead of the Fed’s upcoming decision, factors likely to influence FX and equity market dynamics in Tokyo.