Market Volatility Increases Amid Economic Uncertainty

According to PANews, the foreign exchange market experienced heightened volatility on Friday as stock markets faced a sell-off, prompting investors to seek safe-haven assets. A report indicating that the UK's budget this month will not raise income taxes further pressured the British pound. The market is currently influenced by multiple intersecting factors, with the primary reason being traders' belief that the likelihood of a Federal Reserve rate cut in December is now much lower than anticipated weeks ago. More Federal Reserve officials have expressed caution overnight, showing reluctance towards further easing due to inflation concerns and signs of a relatively stable labor market. This shift in expectations triggered a sell-off in high-valuation U.S. stocks and government bonds, which spread to Asian and European markets. In the foreign exchange market, this led to a flow of funds towards the Swiss franc and the Japanese yen. The latest market data shows the U.S. dollar fell by 0.5% against both the Swiss franc and the Japanese yen.