The US dollar remains stable during today's trading on Friday, where it stabilized after a slight decline in the previous session on the back of a decline in US Treasury bond yields, and the dollar index is on its way to another weekly gain and remains high against most major currencies, supported by moderate expectations of a significant interest rate cut by the Federal Reserve, also with increasing market bets on a possible return of Donald Trump as president of the United States.
Japanese yen
Japanese voters will vote on Sunday for a general election, with opinion polls showing the ruling Liberal Democratic Party could lose its long-held dominance.
Uncertainty and the likelihood of political instability may have repercussions on the path of interest rate hikes by the Bank of Japan, as it tries to guide a smooth process of raising interest rates close to zero. The central bank will hold its next meeting on October 30-31.
There is a high probability that the LDP will lose its majority, which could further complicate matters related to the normalization of the Bank of Japan's policy, and there may be further weakening of the Japanese currency, as this is expected to push the likelihood of raising Japanese interest rates next year and not this year.
The euro
The EURUSD pair has moved somewhat away from its lowest level in more than three months, which it recorded this week, despite this, the European single currency is still losing 0.3%. For this week.
Looking ahead for the eurozone as a whole, the short-term outlook remains bleak, with weak demand conditions, price pressures and business confidence also easing.
British Pound Sterling
The British pound against the US dollar fell by 0.1%, but also moved away from the two-month low that was set this week at the levels of 1.2908.
Australian and New Zealand dollars
The two Australian currencies are expected to lose almost 1% each during this week's trading, due to the strength of the US dollar and with risk appetite slowing due to uncertainty about the upcoming US elections.
