Japan’s current account recorded a surplus of ¥4,483.3 billion in September, exceeding the expected ¥2,468 billion. This indicates stronger economic performance than anticipated. In currency markets, the Australian Dollar showed losses, while the NZD/USD dipped below 0.5650. Meanwhile, the USD/CAD rebounded to around 1.4050 due to news related to the US government shutdown.

Japanese Yen Weakness

The Japanese Yen weakened amid uncertainty around potential rate hikes from the Bank of Japan. At the same time, New Zealand’s two-year inflation expectations rose to 2.28% for Q4 2025. The EUR/USD was trading at around 1.1560, with focus on US political events. GBP/USD lingered below 1.32 as UK employment data drew nearer. Gold held steady near $4,150, supported by expected US rate cuts and a weaker dollar. In the cryptocurrency space, Bitcoin, Ethereum, and Ripple saw gains due to improving market sentiment. Coinbase has launched a new platform for buying digital tokens before they officially list. The Layer-1 network Monad plans to release its token on November 17.

Volatility In Upcoming Weeks

With mixed signals in the market, we anticipate significant volatility in the coming weeks. The resolution of the US government shutdown is likely to support the dollar, but traders are also considering a high chance of a Federal Reserve rate cut in December. The CME FedWatch Tool currently indicates a 78% likelihood of this cut, especially after last month’s Core CPI showed a modest year-over-year increase of 2.1%. For those tracking the Japanese yen, the situation remains complicated. Japan’s current account surplus of ¥4.48 trillion in September is a positive sign. However, uncertainty about the Bank of Japan’s approach to raising rates could hinder the yen’s strength, similar to the currency’s significant weakness seen in 2023-2024. Gold remains near $4,150, almost double its price from a few years ago. Its value strongly depends on whether the Federal Reserve will actually implement rate cuts. A risk-defined strategy, like buying a bull call spread on gold futures, could allow for potential gains while also safeguarding against a sharp market reversal if the Fed’s stance shifts. The cryptocurrency market is awakening in anticipation of the new token sale on Coinbase scheduled for November 17. Recent data shows that investment products in digital assets have attracted over $1 billion in inflows for the past seven weeks, indicating that traders might consider short-term call options on Bitcoin or Ethereum to capitalize on the positive sentiment leading up to this event. The Reserve Bank of New Zealand reported that two-year inflation expectations remain steady at 2.28%, which may strengthen the NZD against currencies with more cautious central banks. This figure falls comfortably within the RBNZ’s target range, suggesting they are not in a hurry to change policy. In contrast, the Australian dollar has been weak due to declining iron ore prices. Create your live VT Markets account and start trading now.

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