U.S. manufacturing continued to recover in September as employment rebounded, according to a survey by the Institute for Supply Management.
In addition, the US Congress issued a temporary budget law last weekend to prevent the risk of a Government shutdown. This act helps allocate funds to ensure the federal government can maintain operations until November 17. According to the US Constitution, Congress is responsible for allocating budget for the operations of 438 government agencies in each fiscal year (ending on September 30 of each year). If lawmakers do not pass a budget bill before the new financial year begins, government agencies will not be able to continue operating normally.
Treasury yields rose, with the benchmark 10-year yield hitting 4.703%.
“The US economy appears to remain resilient to higher interest rates over the long term,” said Bipan Rai, Head of North America FX Strategy at CIBC Capital Markets in Toronto (Canada). The Fed probably won't cut interest rates quickly next year."
Meanwhile, the Japanese Yen weakened 0.31% against the greenback, currently at 149.77, after falling to 149.90. Edward Moya, Senior Market Analyst at Oanda (New York, USA) said: “US growth is much better than other countries and it can benefit from high interest rate differentials. ”.
Investors are now closely watching for signs of intervention in the Japanese currency by the Bank of Japan (BOJ). The yen has been under pressure against the greenback as the BOJ remains a dovish outlier among global central banks, especially since the Fed began its aggressive rate hike cycle in March- 2022.
A summary of comments at the Bank of Japan's September meeting shows that many policymakers discussed the eventual prospect of a change to "ultra-loose" policy, while The central bank also said it will conduct additional bond purchases.
In addition, the US Congress issued a temporary budget law last weekend to prevent the risk of a Government shutdown. This act helps allocate funds to ensure the federal government can maintain operations until November 17. According to the US Constitution, Congress is responsible for allocating budget for the operations of 438 government agencies in each fiscal year (ending on September 30 of each year). If lawmakers do not pass a budget bill before the new financial year begins, government agencies will not be able to continue operating normally.
Treasury yields rose, with the benchmark 10-year yield hitting 4.703%.
“The US economy appears to remain resilient to higher interest rates over the long term,” said Bipan Rai, Head of North America FX Strategy at CIBC Capital Markets in Toronto (Canada). The Fed probably won't cut interest rates quickly next year."
Meanwhile, the Japanese Yen weakened 0.31% against the greenback, currently at 149.77, after falling to 149.90. Edward Moya, Senior Market Analyst at Oanda (New York, USA) said: “US growth is much better than other countries and it can benefit from high interest rate differentials. ”.
Investors are now closely watching for signs of intervention in the Japanese currency by the Bank of Japan (BOJ). The yen has been under pressure against the greenback as the BOJ remains a dovish outlier among global central banks, especially since the Fed began its aggressive rate hike cycle in March- 2022.
A summary of comments at the Bank of Japan's September meeting shows that many policymakers discussed the eventual prospect of a change to "ultra-loose" policy, while The central bank also said it will conduct additional bond purchases.
