Dollar steady, euro weakens after French protests turn violent
SPY•The dollar was little changed in Asian trading as the euro fell 0.1% to $1.1230 after violent protests in France. The dollar index traded at 101.82, while the yen was flat against the dollar at 158.09.
1. Euro pressured by unrest
The dollar edged up from near its monthly lows in subdued Asian trading, while the euro fell 0.1% to $1.1230. French President Emmanuel Macron condemned violence during protests over the cost of living. One analyst said unrest could weigh on the euro through French bonds, with the French-German bond spread near 140 basis points.
2. Other currencies move
The dollar was flat against the yen at 158.09 after Bank of Japan Governor Kazuo Ueda said underlying inflation was quite close to the central bank’s 2% target. It fell 0.1% against the offshore yuan to 6.6811 after Chinese third-quarter GDP growth came in slightly above expectations. The Indonesian rupiah slipped 0.2% to near a three-month low following concerns about a possible downgrade of the country’s stock market by MSCI.
3. Markets look to central banks
The Australian dollar rose 0.5% to $0.6975, while the pound was steady at $1.3329 and the New Zealand dollar was flat at $0.5655. Markets were also looking ahead to Federal Reserve and European Central Bank meetings on October 28 and 29; futures implied an 87% chance the Fed would hold rates at its next meeting.
