Today's key events are narrowed down to 3: the November month-start factor, the release of the US ISM Manufacturing PMI, and the US midterm elections scheduled for tomorrow, 3 November. The market is expected to assess its direction based on this information.
Today's focus is that it is the first business day of November and that the release of the US ISM Manufacturing PMI is pending. Apple's earnings announcement is also scheduled as a factor for the start of the week, and may move in tandem with the US market. Trading in the past showed a trend of dollar weakness, but there were indications that dollar buying strengthened toward the weekend.
The US ISM Manufacturing PMI is scheduled for release at 24:00, and attention will be focused on how it compares with the previous reading. The performance of major US companies and the direction of long-term interest rates were also identified as related indicators requiring attention. The month-start factor and the start-of-week moves may affect the direction of the financial markets.
The US midterm elections are scheduled for 3 November local time, with the results expected to become clear in Japan from 4 November onward. This may increase volatility in the US equity market and foreign-exchange markets. Market participants are also urging caution over the scheduled release of major indicators, including employment-related data, toward the latter half of this week.
In the previous week's trading, after developments involving the FOMC and the FRB, USD/JPY traded in the ¥157 range, while EUR/USD fell to the 1.11 range toward the end of the week. This week, the direction of the US dollar and major currencies is expected to be determined primarily by the month-start factor, the ISM index and the midterm elections.