Dollar Gains Weigh on Euro and Pound (10.30.2025)

The euro slipped below $1.16 on Thursday after the Federal Reserve cut rates by 25 basis points and signaled no further easing this year. 

The dollar strengthened broadly, pushing the pound to a five-month low near $1.32, while the yen held steady around 152.5 amid BoJ policy uncertainty. Gold and silver saw mild recoveries as investors balanced risk sentiment against lingering concerns over U.S. fiscal stability and trade relations.

Euro Slides Below $1.16 After Fed Cut

The euro fell below $1.16, its lowest since mid-October, pressured by a stronger U.S. dollar after the Fed’s 25 bps rate cut. Although expected, Chair Powell signaled no further cuts this year. The ECB is expected to keep rates unchanged for a third meeting on October 30, reflecting caution amid steady growth and easing inflation. Eurozone inflation rose to 2.2% in September, while GDP grew 0.1% for the second straight quarter.

From a technical view, the euro faces resistance near 1.1680, with strong support around 1.1600.

Yen Near 152.5 on Policy Uncertainty

The Japanese yen traded near 152.5 per dollar as investors awaited the Bank of Japan’s policy decision, with markets widely expecting no change in rates. However, attention may turn to the timing of future hikes as domestic inflation rises and tariff pressures ease. The yen weakened earlier after the Fed’s rate cut and Powell’s cautious comments, while Prime Minister Sanae Takaichi’s support for accommodative policy added uncertainty to its outlook.

Technically, resistance stands near 153.20, while support is firm at 151.50.

Gold Gains on Weaker Dollar Amid Uncertainty

Gold (XAU/USD) rose during Thursday’s Asian session, ending a four-day decline as the U.S. dollar weakened amid concerns over a potential government shutdown. Heightened risk aversion following the tense Trump–Xi meeting supported safe-haven demand, though the Federal Reserve’s hawkish outlook may limit further gains by keeping the dollar relatively firm.

From a technical view, key support lies near $3880, while resistance is seen around $4,020.

Pound Sinks Below $1.32 on Fiscal Concerns

The pound fell below $1.32, its weakest since April, as a stronger dollar and concerns over the UK’s fiscal and monetary outlook weighed on sentiment. The Fed’s 25 bps cut and Powell’s cautious tone added pressure, while traders increased bets on BoE rate cuts. Fears of tax hikes, slower productivity, and soft inflation data ahead of November’s budget further reinforced expectations of easing.

From a technical view, support stands near 1.3160, with resistance around 1.3320.

Silver Eases Slightly After Hitting $48 Barrier

Silver (XAG/USD) encountered resistance around the $48.00 level on Thursday, prompting mild selling during the Asian session. However, the metal held comfortably above Tuesday’s two-week low, hovering just below the mid-$47 range with a slight daily loss of about 0.20%.

From a technical view, resistance stands near $47.90, while support is located around $45.50.