USD/JPY is expected to remain focused on the US midterm elections through the 4th, with the pair anticipated to trade in a range of ¥156.50–¥158.80 per dollar. Ballots will be counted on the 3rd, and market movements from the 4th onward will be watched closely.
In the foreign-exchange market through the 4th, USD/JPY is expected to be driven mainly by the US midterm elections, with the forecast range set at ¥156.50–¥158.80 per dollar. On the 4th, the market is expected to trade while monitoring the preliminary election results.
The US midterm elections are scheduled for the 3rd. While the Democrats are widely seen as having an advantage in the House, attention is focused on the Senate results. There is a view that if the Democrats win, US interest rates could decline as fiscal policy moves toward restraining spending expansion. This could create a factor for dollar weakness, although volatile trading is also expected through the 4th.
The US October ISM Manufacturing Index is due tonight, and US September JOLTS job openings data will be released on the 3rd. Active trading may be restrained ahead of the US midterm elections.