Global markets opened the week on mixed sentiment. Japanese equities trimmed recent gains as investors engaged in profit-taking ahead of the upcoming meeting between Prime Minister Takayichi and U.S. President Trump. Expectations for increased defense spending—potentially up to 2% of GDP— are raising concerns over long-term fiscal pressure and yielding higher government bond rates, which weighed on the Japanese Yen.

U.S. stock indices advanced, supported by optimism surrounding renewed U.S.–China trade discussions, as well as anticipation ahead of the Federal Reserve’s next policy meeting. The U.S. Dollar eased slightly as risk appetite improved, with traders awaiting clarity from the Fed regarding interest rate trajectory.

Near-term direction for the U.S. Dollar is expected to depend on the tone of the Fed’s policy communication. Any indication of a dovish signal or reduced rate guidance could further pressure the dollar and support risk-sensitive assets in the short term.

Source: Exness Daily Commentary – 28 Oct 2025.