Israel’s government has formally approved the first phase of U.S. President Trump’s peace deal, under which Hamas will release remaining hostages in Gaza in exchange for more than 2,000 prisoners. The agreement marks a major breakthrough, paving the way toward ending the conflict. Hamas has accepted that it will not govern Gaza but has yet to agree to disarmament.
In Japan, Finance Minister Katsunobu Kato warned over the yen’s weakness after the currency hit an eight-month low against the U.S. dollar. The government will continue to assess any “excessive movements” and reiterated that the exchange rate should “reflect fundamentals.” This decline in the yen followed the election of LDP’s new leader, Sanae Takaichi, known for aggressive fiscal stimulus and monetary easing, which dampened expectations of a near-term Bank of Japan rate hike.
Overnight, spot gold retreated 2% from its all-time high, likely due to profit-taking ahead of the weekend, slipping back below the $4,000 mark and currently trading at $3,970.78 per ounce.
On the economic calendar today, we have Canada’s unemployment rate at 1:30 p.m., U.S. October UMich Sentiment at 3:00 p.m., and expect President Trump to make an announcement from the Oval Office at 10:00 p.m.
