The "shutdown" continues, the U.S. Senate rejects the temporary appropriation bill for the 12th time, and the price of gold falls to the lowest in nearly two weeks

On October 23, spot gold was trading around US$4,080 per ounce in the Asian market on Thursday. Gold prices fell to a nearly two-week low as investors took profits before the United States released key inflation data this week. US crude oil was trading around US$60 per barrel. Oil prices rose by more than 3% on Wednesday.

The pound was the weakest major currency on Wednesday as Britain reported that inflation unexpectedly remained at 3.8% in September, lower than economists and the Bank of England expected. The pound fell as much as 0.5% against the dollar. GBP/USD was last down 0.13% at 1.336 in New York.

Francesco Pesole, a foreign exchange analyst at ING, said that when the Bank of England began to release hawkish signals recently, it held a view that was inconsistent with the general market view, believing that inflation would be stronger than the market or economists expected. But at present, this expectation has not been truly verified. "Investors believe that the probability of the Bank of England cutting interest rates before the end of the year is about 75%, up from about 46% before the data was released. Overall, our economists believe that today's data provides meaningful and real news of softening inflation and raises the risk that the Bank of England's next interest rate cut will be earlier than its February meeting baseline expectations," Goldman Sachs analysts said in a research note.

The yen suffered its largest monthly decline since July, with the U.S. dollar falling 0.04% against the yen to 151.875 yen. The yen hit a one-week low against the U.S. dollar on Tuesday, with sources saying Japan's new Prime Minister Takaichi Sanae is preparing a project that could exceed last year's 13.9 trillion yen (921.9 trillion yen).$900 million) stimulus package to help households cope with inflation.

The yen fell 2.5% this month, its biggest monthly decline since July, as investors expected Japan's new government to implement expansionary fiscal policies and tensions with the Bank of Japan to weigh on the yen.

ING's Pesole said: "Takaichi's first speech as prime minister showed that she wants to calm the market and not exacerbate the yen's weakness for the time being."

Takaichi is an advocate of loose fiscal and monetary policies. She said on Tuesday that the specific means of monetary policy will be decided by the Bank of Japan. New Finance Minister Satsuki Katayama said on Wednesday that coordination between the government and the Bank of Japan is necessary to ensure that economic and monetary policies are effective.

The Bank of Japan will announce its latest policy decision on October 30. Interest rate futures prices imply about a 20% chance that the central bank will raise interest rates by 25 basis points to 0.75%.

The U.S. dollar index, which measures the strength of the U.S. dollar against a basket of six currencies, closed at 98.897 in late New York trading, down 0.08% after rising for three consecutive days. U.S. President Donald Trump on Tuesday rebuffed a request from Democratic congressional leaders for a meeting unless the government shutdown ends.

The impasse www.stofoco.complicates the task facing the Fed at its October 29 meeting. A Reuters poll of economists showed the Federal Reserve will cut its key interest rate by 25 basis points next week and again in December. Economists remain deeply divided over where interest rates will be at the end of next year.

Federal funds rate futures imply a 97% chance of a 25 basis point rate cut, according to LSEG data.

The euro rose 0.09% against the dollar to trade at $1.16. The planned summit between U.S. President Trump and Russian President Vladimir Putin was shelved after Russia refused to immediately cease fire in Ukraine.

Asian Markets

Japan’s exports rose in September for the first time in five months, indicating a temporary recovery in external demand, although shipments to the United States continued to contract sharply.

Exports increased by 4.2% year-on-year to 9.41 tons of yen, slightly lower than the expected 4.6%. The rebound was mainly driven by strength in Asia, where exports rose 9.2%, including a 5.8% increase in exports to China. By www.stofoco.comparison, shipments to the U.S. fell -13.3%, with auto exports down -24.2%, which, while smaller than August's 28.4% drop, continued months of weakness.

Imports also grew faster than expected, rising 3.3% year-on-year to 9.65 tons of yen, www.stofoco.compared with expectations of 0.6%. As a result, Japan posted a trade deficit of ¥234.6B.

European market

British inflation in September was lower than expected. The overall CPI remained unchanged at 3.8% year-on-year, lower than market expectations of 4.0%. Core CPI (excluding energy, food, alcohol and tobacco) fell to 3.5% from 3.6%.

SegmentationThe picture beneath the surface is a mixed bag. The consumer price index (CPI) rose slightly year-on-year to 2.9%, the highest level since October 2023. Service sector inflation remained unchanged at 4.7%.

On a monthly basis, consumer prices were flat, another sign that the pulse of inflation has slowed heading into the final quarter of the year.

U.S. market

U.S. Treasury Secretary Bessent: Rising gold prices will help us.

The "shutdown" continues, and the U.S. Senate rejects the temporary appropriation bill for the 12th time.

The above content is all about "[XM Foreign Exchange Platform]: The "shutdown" continues, the U.S. Senate vetoes the temporary appropriation bill for the 12th time, and the price of gold fell to a low in nearly two weeks." It was carefully www.stofoco.compiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your trading! Thanks for the support!

Sharing is as simple as a gust of wind can bring refreshing, as pure as a flower can bring fragrance. Gradually my dusty heart opened up, and I understood that sharing is actually as simple as the technology.