The US dollar has made some gains on Friday, nearing weekly lows around 152.85 after facing resistance at the 153.50 mark earlier. There’s a general sense of caution in the market, making it tough to predict direction as traders await the US Michigan Consumer Confidence Index.
During Asian trading, the yen experienced a decline due to disappointing household spending figures for September. The year-on-year growth fell to 1.8%, notably below expectations of 2.5%, especially after a 2.3% rise in August.
These statistics back up remarks made by Prime Minister Takaichi earlier this week, indicating that Japan’s economy is only partially achieving stable price increases. These statements lend support to the Bank of Japan’s strategy regarding potential interest rate hikes, which could be on the table in December, adding more pressure on the yen.
The currency is projected to finish the week down 0.6%, undercut by mixed employment data from the US and comments from Japan’s Finance Minister Katayama, who cautioned against excessive volatility. The yen has dropped to levels that could prompt intervention similar to what occurred in 2022 and 2024.
In the US, remarks from Federal Reserve Vice Chairman Philip Jefferson are anticipated to attract attention, particularly after Thursday’s weaker job numbers. However, the main focus will likely be on the Michigan Consumer Confidence Index, which is expected to show a decline for the fourth consecutive month in November.
economic indicators
Michigan Consumer Confidence Index
Released monthly by the US government, the Michigan Consumer Confidence Index is a survey by the University of Michigan that gauges consumer sentiment. It addresses personal finances, business conditions, and purchasing power. The data indicates consumer willingness to spend, which is critical since spending drives much of the US economy. The survey offers early readings in the middle of the month, followed by a final measure at month’s end. Generally, higher values are good for the US dollar, while lower figures can have the opposite effect.
Next release:
Friday, November 7, 2025 15:00 (Prel)
frequency:
monthly
consensus:
53.2
Previous:
53.6
sauce:
University of Michigan
economic indicators
Michigan Consumer Expectations Index
This index, part of the University of Michigan’s inflation forecast, measures consumer expectations regarding price changes over the next year. It will be released in two phases, with initial results often being more robust and later updates providing revisions.
Next release:
Friday, November 7, 2025 15:00 (Prel)
frequency:
monthly
consensus:
–
Previous:
50.3
sauce:
University of Michigan
