Dollar Firms as the Euro and Yen Decline

Group 1: Dollar Index and Economic Impact - The dollar index rose by +0.39% to a 1-week high, driven by the resignation of French Prime Minister Lecornu, which negatively impacted the euro, and a significant drop in the yen following the election of pro-easy policy candidate Sanae Takaichi as Japan's new prime minister [1][6] - The ongoing US government shutdown, now in its second week, poses a bearish outlook for the dollar, with potential stagnation in GDP growth if the shutdown continues [2] Group 2: Eurozone Economic Indicators - The EUR/USD pair fell by -0.26% to a 1-week low, influenced by political instability in France after Prime Minister Lecornu's resignation, which raised uncertainty about the Eurozone's economic outlook [4] - Eurozone retail sales for August increased by +0.1% month-over-month, aligning with expectations, while the October Sentix investor confidence index rose by +3.8 to -5.4, surpassing expectations of -7.7 [5] Group 3: Japanese Yen and Monetary Policy - The USD/JPY pair increased sharply by +1.89%, with the yen reaching a 2-month low against the dollar due to Takaichi's election, which diminished expectations for an imminent interest rate hike by the Bank of Japan and raised concerns over increased debt supply from fiscal stimulus [6]