Yen Buying Takes a Breather, but Euro Remains Weak; Will U.S. ISM Data Shift the Dollar’s Trend?

Yen Buying Takes a Breather, but Euro Remains Weak; Will U.S. ISM Data Shift the Dollar’s Trend?

02.11.2026 New

In the U.S. currency market on the previous business day, the dollar faced resistance as Treasury bonds were bought in response to a sharp decline in U.S. tech stocks, causing the yield on the 10-year U.S. Treasury note to fall to around 4.93%. The dollar-yen pair fell as low as 156.95 yen before closing the week at around 157.55 yen.Against the Canadian dollar, the U.S. dollar also showed little clear direction, with a wait-and-see attitude prevailing at the start of the week ahead of the U.S. midterm elections and the jobs report. Among Oceania currencies, the Australian dollar traded in the low 0.70 range and the New Zealand dollar in the low 0.56 range, with attention also focused on tomorrow’s policy decision by the Reserve Bank of Australia.

European currencies were weighed down by concerns over France’s fiscal situation, and on the 30th, the euro-dollar exchange rate traded within a range of $1.1136 to $1.1215. Also on the 30th, Fitch affirmed France’s credit rating at A+ but downgraded the outlook from “Stable” to “Negative.”On the 2nd, the euro-dollar exchange rate struggled to gain momentum, hovering mainly in the $1.115 range. Meanwhile, the pound-dollar pair traded relatively calmly in the upper $1.33 range. In Europe, although eurozone GDP rose 0.4% quarter-on-quarter, exceeding expectations, concerns over fiscal issues remain deep-seated. Attention will focus on whether manufacturing sentiment will influence currency strength.

Today’s economic data includes the release of Germany’s September retail sales figures at 4:00 p.m., which are expected to show a 0.4% increase from the previous month.This will be followed by the revised October Manufacturing PMI figures for France at 5:50 p.m., Germany at 5:55 p.m., the Eurozone at 6:00 p.m., and the UK at 6:30 p.m.; we’ll be watching for the reaction of the euro and the pound.In the U.S., the revised Manufacturing PMI is due at 11:45 p.m., followed by the ISM Manufacturing Index at midnight; forecasts stand at 56.0 and 54.6, respectively. With policy rate decisions scheduled this week in Australia and the UK, we’ll be watching for signs of the direction for the dollar and European currencies.