Forexlive Americas FX news wrap: USD/JPY sinks ahead of the BOJ decision

<ul><li><a href="https://www.forexlive.com/centralbank/boj-to-consider-policy-tweak-to-allow-10-year-yields-to-exceed-1-report-20231030/">BOJ to consider policy tweak to allow 10-year yields to exceed 1% — report</a></li><li><a href="https://www.forexlive.com/news/german-october-prelim-hicp-inflation-30-yy-vs-33-expected-20231030/">German October prelim HICP inflation 3.0% y/y vs +3.3% expected</a></li><li><a href="https://www.forexlive.com/centralbank/bocs-macklem-further-easing-in-inflation-is-likely-to-be-slow-and-risks-are-high-20231030/">BOC's Macklem: Further easing in inflation is likely to be slow and risks are high</a></li><li><a href="https://www.forexlive.com/news/us-quarterly-financing-776-billion-in-october-december-period-20231030/">US quarterly financing $776 billion in October-December period</a></li><li><a href="https://www.forexlive.com/news/dallas-fed-october-manufacturing-index-192-vs-181-prior-20231030/">Dallas Fed October manufacturing index -19.2 vs -18.1 prior</a></li><li><a href="https://www.forexlive.com/news/gm-reaches-deal-to-end-us-auto-strikes-20231030/">GM reaches deal to end US auto strikes</a></li><li><a href="https://www.forexlive.com/news/the-economy-according-to-mcdonalds-20231030/">The economy according to McDonald's</a></li></ul><p>Markets:</p><ul><li>Gold down $10 to $1995</li><li>US 10-year yields up 4.3 to 4.89%</li><li>S&amp;P 500 up 48 points to 4185, or 1.2%</li><li>WTI crude oil down $3.10 to $82.44</li><li>AUD leads, USD lags</li></ul><p>The US dollar was soft today and I highlighted three reasons why earlier: 1) Diminishing geopolitical risk premium hit USD and CHF 2) USD/JPY selling ahead of the BOJ 3) Timiraos talking about the Fed going to the sidelines and cutting next year.</p><p>You could add a positive risk backdrop to that as well, though it wouldn't explain USD/JPY selling. Ultimately, the dollar fell uniformly, though not necessarily at the same time. USD/JPY sank quickly on the report from Nikkei about the BOJ considering a lift to YCC. It dropped as low as 148.81 from 149.75.</p><p>EUR/USD was strong despite a soft German inflation report. That was surprising but spoke to a market that's more concerned about geopolitics at the moment. Cable tracked the move as well to a four-day high.</p><p>The commodity currencies were strong, including CAD, despite a poor day for oil. There was an ebb and flow as stocks rose and fell but ultimately the market found itself in a good mood. </p><p>The refinancing data was a drag on the dollar late in the day as it appears the US will be issuing less debt that feared, though we'll have to wait for Wednesday's coupon sizes to see if it's weighted towards the long end.</p>

This article was written by Adam Button at www.forexlive.com.