A holiday-shortened start to the week has kept Asian trading subdued, but currency markets are on alert as the yen hovers near multi-month lows. With Japan’s Finance Ministry stepping up warnings and previous interventions often occurring during thin liquidity windows, traders are watching the upcoming U.S. Thanksgiving and Black Friday sessions closely. Reduced market depth during these periods can amplify price movements, making them an opportune moment for authorities to step in if pressure on the yen intensifies. For now, the currency remains weak but relatively stable, with officials signaling readiness to act should volatility accelerate.

Global sentiment has steadied after last week’s sharp equity declines, helped by remarks from Fed officials hinting that rate cuts could arrive sooner rather than later. Markets now lean toward the possibility of another reduction next month, boosting risk appetite after a difficult stretch for global stocks. In the days ahead, the spotlight will shift to U.S. retail activity during the holiday shopping season, a critical gauge of consumer resilience. Europe, meanwhile, is bracing for the U.K.’s upcoming budget announcement, where policymakers aim to balance fiscal credibility with political promises—an equation that has kept bond and currency markets uneasy.