The Japanese yen weakened in Asian trading on Friday against a basket of major and minor currencies, paring some of its gains from the previous day against the US dollar after the release of gloomy economic data showing an unexpected slowdown in household spending.

Despite today’s decline, the yen remains on track to post a weekly gain, supported by buying from eight-month lows and renewed expectations that the Bank of Japan may raise interest rates in December.

Price Overview

• USD/JPY rate today: The US dollar rose 0.2% to ¥153.31, up from the session’s opening at ¥153.06, after touching a low of ¥152.81.

• The yen ended Thursday’s session up 0.7% against the dollar, its second gain in the past three sessions, recovering from an eight-month low of ¥154.48.

• In addition to bargain buying, the yen strengthened Thursday following upbeat wage data for September.

Weak Data

Friday’s figures from Tokyo showed that Japanese household spending rose 1.8% year-on-year in September, missing market expectations for a 2.5% increase, after a 2.3% rise in August.

The slowdown in consumer spending could pave the way for weaker prices and a moderation in inflation over the coming period. Easing inflationary pressure on policymakers at the Bank of Japan reduces the likelihood of further rate hikes in the near term.

Weekly Performance

So far this week, the yen is up about 0.5% against the US dollar, on track to record its first weekly gain in three weeks.

Interest Rate Outlook

• Although Bank of Japan Governor Kazuo Ueda sent his strongest signal yet last week about a possible rate hike in December, markets remain unconvinced by the central bank’s cautious approach.

• Market pricing currently reflects roughly a 55% probability of a 25-basis-point rate hike at the December meeting.

• Investors are awaiting additional data on inflation, unemployment, and wage growth in Japan to reassess these expectations.

Most cryptocurrencies declined on Thursday as risk appetite weakened across markets amid renewed concerns over the US labor market.

Data released by Challenger, Gray & Christmas showed that US job cuts surged by 183% month-over-month in October, raising fears about labor market stability. As a result, expectations for a Federal Reserve rate cut in December rose to 70%, up from 62% yesterday, according to the CME FedWatch tool.

Chicago Fed President Austan Goolsbee expressed caution on Thursday regarding the path forward for rate cuts, noting that the ongoing government shutdown has halted the release of core inflation data, making it difficult to accurately assess price trends.

Meanwhile, Cleveland Fed President Beth Hammack said she remains concerned that current monetary policy may not be properly calibrated to address ongoing inflationary pressures.

Ethereum

As of 20:37 GMT, Ethereum fell 4.4% to $3,309.7 on CoinMarketCap.

The rapid rise of artificial intelligence and digital infrastructure has made data centers the fastest-growing source of electricity demand in North America. As grid operators and policymakers race to keep pace with this surge, energy providers face a historic opportunity to unlock new avenues of growth and revenue.

The First Challenge: Capacity Bottlenecks

Data center developers are working under tight timelines to secure power, while interconnection queues for new generation or transmission projects can stretch for years. To overcome these hurdles, some operators have begun building their own substations or developing on-site generation facilities to accelerate supply.

For energy providers, this race against time creates opportunities to deliver flexible, fast-deployable power solutions such as gas turbines, reciprocating engines, and energy storage systems.

The Second Challenge: Grid Stability

Data centers are highly sensitive to even minor voltage fluctuations, and several incidents have already caused significant load disruptions. In response, regulators are tightening reliability standards, while the industry invests in backup systems and advanced on-site grid technologies.

These developments pave the way for a new concept — “Stability as a Service” — where energy providers can offer reliability and stability solutions alongside traditional power supply.

The Third Challenge: Cost Pressures

As utilities expand their networks to meet rising demand, the cost of new infrastructure is putting pressure on electricity prices across all customer segments. Policymakers are exploring new cost-recovery models to protect consumers, but large industrial users are already turning to behind-the-meter generation to reduce costs and achieve greater price stability.

This shift, in turn, is creating growing demand for integrated on-site energy solutions that combine reliability, affordability, and sustainability.

Outlook

The growth of data centers is reshaping North America’s energy landscape faster than power grids and regulatory frameworks can adapt. Companies capable of providing rapid, innovative, and cost-efficient solutions will be best positioned to benefit from this wave.

In the longer term, carbon capture, energy storage, and renewable integration will become essential components for sustaining growth in a world moving toward lower emissions.

Palladium prices fell sharply on Thursday, despite a weaker U.S. dollar against most major currencies, as investors assessed the recently announced trade truce between the United States and China.

According to Capital.com, palladium prices have surged about 26% since the beginning of October to around $1,500 per ounce. This rally has coincided with gains in the platinum market and a broader easing in global financial conditions.

Bets on potential U.S. interest rate cuts and a softer dollar have further supported palladium’s rise, as part of the broader “gold + liquidity wave” driving precious metals higher.

Palladium is used almost exclusively in catalytic converters for gasoline engines, meaning U.S. automakers and electronics manufacturers could face significant cost volatility.

Technical analysis from Monex shows a resistance zone between $1,500 and $1,520 per ounce, with expectations that the overall trend remains upward but with volatile trading in the near term.

Analysts at CPM Group said the recent strength in palladium is “closely linked to platinum’s performance,” while warning that a weakening U.S. labor market and persistent inflation could hinder demand growth.

Despite the announcement of a trade truce between Washington and Beijing, comments from U.S. officials suggest tensions remain unresolved. The U.S. Treasury Secretary described China as an “unreliable trading partner,” while President Donald Trump stated that his administration would not allow exports of advanced Nvidia chips to China or other countries.

Meanwhile, the U.S. dollar index fell 0.3% to 99.8 points by 15:48 GMT, after reaching an intraday high of 100.1 and a low of 99.7.

At the same time, December palladium futures dropped 3.7% to $1,397 per ounce.