The focus going forward will be whether persistent dollar-buying pressure continues. USD/JPY has remained firm even after reports of a rate check, with the pair holding in the upper 156 range to the 157 range.
In late-week New York trading, USD/JPY rose to near 158 before falling back into the 157 range, while speculation about a rate check was spreading. In early-week Tokyo trading, USD/JPY was pushed down to around 156.58 before recovering to the 157 range, indicating persistent buying pressure. EUR/USD and GBP/USD have both edged modestly toward a stronger dollar.
Reports that Saudi Arabia's capital, Riyadh, was attacked over the weekend have heightened awareness of dollar buying as a safe-haven trade. Meanwhile, crude oil prices remained soft after the pause in buying. Following an announcement by the U.S. Central Command that oil distribution conditions were improving, views to that effect have been spreading. Attention should also be paid to developments in crude oil prices in overseas markets.
At today's New York market cut, option expiries of around ¥2.5 billion at 157.00 in USD/JPY and around €1.1 billion at 1.1470 in EUR/USD have been observed, making it easier for the expiries to constrain movements in both currency pairs until they mature. Attention will be focused on whether dollar buying will again prevail in response.
Economic indicators due include Turkey's capacity utilization rate for September and Hong Kong's current account balance for the second quarter of 2026. Speaking events include addresses by Goolsbee, president of the Federal Reserve Bank of Chicago, and Macklem, governor of the Bank of Canada. The market's outlook for interest rates and inflation may be reassessed through the data and speeches.