Despite the steepest decline in the S&P 500 since early September, U.S. interest rates managed to retain most of their recent gains, holding firm even amid a three-day market slide. However, the U.S. dollar is undergoing a period of consolidation, paring some of its recent advances against G10 currencies. Signs of correction are also emerging in both global stock and bond markets. Notably, gold saw a significant move yesterday, reaching a new high before closing below the previous day’s low, which suggested a potential key reversal. However, follow-through selling has not materialized, and gold has rebounded from yesterday's close of $2715.55, approaching $2740 today. Meanwhile, December WTI crude oil hit an eight-day high, climbing above $72.20.

Asia Pacific Markets
The U.S. dollar has surged more than 8% against the yen since bottoming out on September 30 near JPY141.65. If this trend holds, it would mark the largest monthly gain for the dollar versus the yen since August 1995. Despite the yen's weakness, the Bank of Japan is widely expected to keep its interest rates unchanged during next week’s meeting.
In Australia, the Reserve Bank of Australia is scheduled to meet on November 5, and today’s PMI data is unlikely to shift its course. The Australian dollar, which was sold off to almost $0.6620, fell below its 200-day moving average for the first time since mid-August. However, it rebounded to $0.6660 before losing momentum.

European Markets
Preliminary PMI data from the eurozone and the UK for October was lackluster. The euro continued to slide yesterday, briefly breaking through the uptrend line that connects the April and June lows but managed to close just above it. In early European trading, the euro recovered to around $1.0810, but buying pressure seemed to have waned.
Similarly, sterling also tested its trendline yesterday, connecting the April and August lows near $1.2910, which aligns with the 50% retracement of this year’s gains at $1.2930. Sterling held above yesterday’s low and recovered to $1.2975 in today’s trading.

American Markets
Today's U.S. data releases, including the preliminary October PMI, weekly jobless claims, and September new home sales, are unlikely to have a significant impact on U.S. rates or the dollar. Manufacturing PMI has been below 50 for the past three months, jobless claims are overshadowed by next week's national employment report, and new home sales data follows two consecutive months of declines in existing home sales. Instead, the market’s focus remains on the sharp rise in U.S. interest rates, driven by expectations of increased Treasury supply and inflation, regardless of the election outcome.
The Bank of Canada delivered a 50-basis point rate cut, which was widely anticipated, though it did not stop the Canadian dollar from extending its losses.