Will the USD/JPY, which has tested the 158-yen level, see a shift in momentum following Governor Ueda’s remarks?
06.10.2026
- Remarks by Bank of Japan Governor Ueda
- Eurozone August Retail Sales
In the U.S. currency market the previous day, the U.S. dollar held steady against major currencies. The U.S. ISM Non-Manufacturing Purchasing Managers’ Index for September fell to 54.9 from 55.4 the previous month, while the Purchasing Prices Index rose from 72.6 to 74.0.The rise in the U.S. 10-year Treasury yield to the 5.3% range also supported the dollar, and the Dollar Index briefly hit 102.53, its highest level since April 2025.The dollar-yen exchange rate rose from around 157.44 yen to around 158.30 yen, and we will be watching to see if it can hold above the 158-yen level.
Among European currencies, the euro’s weakness was particularly notable. Concerns over France’s fiscal management, coupled with the call for early general elections in Spain, contributed to political uncertainty, causing the euro to briefly fall to $1.1160—its lowest level in 17 months.Although the pair subsequently rebounded to the $1.12 level, concerns over European fiscal risks persist. The pound also fell to around $1.3213 against the dollar, while it held up well against the euro.
Today’s economic indicators include Germany’s August manufacturing new orders at 3:00 p.m., remarks by Bank of Japan Governor Kazuo Ueda at 3:35 p.m., the UK’s September construction Purchasing Managers’ Index (PMI) at 5:30 p.m.,Eurozone August retail sales at 6:00 p.m., and the U.S. August trade balance at 9:30 p.m. are scheduled. For USD/JPY, we will monitor the reaction to the BOJ Governor’s remarks, and for EUR/USD, we will watch the market’s response to the German and Eurozone economic indicators to assess whether currency strength and weakness will shift during European and U.S. trading hours.
Author: Keisuke Sakurai
