MARKET OVERVIEW - Dollar Weakens Significantly in Response to Overseas Events

Forex - Chris Turner from ING stated that the dollar has weakened significantly in reaction to overseas events. Economic growth in the Eurozone and Germany's October inflation exceeded expectations. This led to a reduction in market expectations for a 50 basis point interest rate cut by the European Central Bank in December, resulting in the Euro rising against the dollar.

Following remarks from Bank of Japan Governor Kazuo Ueda that interest rates could increase if the economy and inflation develop in line with the central bank's forecasts, the dollar also lost value against the Japanese yen.

This situation is reversing the recent strengthening trend of the dollar due to the likelihood of Republican candidate Donald Trump winning the upcoming elections next week. The DXY dollar index fell to 103.937, the lowest level in over a week.