Dollar Weakness Supports Euro and Metals (11.14.2025)

The euro held firm near 1.1635 as the U.S. dollar stayed near a two-week low amid concerns over the prolonged government shutdown. Diverging Fed and ECB policy expectations supported the common currency, while the yen remained weak near 154.5 after Japan’s PM urged continued loose policy. Gold climbed above $4,200 as rate-cut hopes returned, the pound slipped on UK fiscal concerns, and silver extended its 10% weekly surge toward $54, supported by safe-haven demand and strong industrial use.

Euro Holds Gains as Dollar Softens

UR/USD held near 1.1635 in Asian trading on Friday, consolidating around a two-week high. The U.S. Dollar stayed weak near a two-week low amid concerns about the prolonged government shutdown’s economic impact. Diverging Fed and ECB policy expectations continue to support the euro. Markets price about a 50% chance of a Fed rate cut in December, while most analysts expect the ECB to keep its deposit rate steady through this year and next.

Technically, 1.1600 is the key support , while resistance is seen at 1.1670.

Yen Near Lows on Dovish Policy Signals

The Japanese yen held near 154.5 per dollar, close to its weakest level in nine months, after Prime Minister Sanae Takaichi encouraged the BOJ to maintain low interest rates and called for more frequent updates from Governor Ueda. Markets currently see only a 25% chance of a rate hike in December. Producer prices came in stronger than the anticipations, while yen losses were partly contained by a softer U.S. Dollar and continued government warnings against sharp depreciation.

Technically, resistance stands near 155.20, while support is firm at 154.40.

Gold Reclaims $4,200 as Shutdown Weakens

Gold (XAU/USD) climbed back above $4,200 in Friday’s Asian session, nearing a three-week high as concerns over slowing US momentum from the prolonged shutdown lifted expectations for more Fed cuts. The weaker US Dollar and softer global risk tone supported safe-haven demand. However, with limited data and several Fed officials sounding cautious, markets have trimmed expectations for a December rate cut.

From a technical view, support is seen near $4160, while resistance is positioned around $4225.

Pound Slips as UK Drops Income-Tax Hike Plan

GBP/USD eased to around 1.3150 in Friday’s Asian trading, trimming part of Thursday’s advance as the Pound softened amid concerns over the UK’s fiscal position and political uncertainty. The Financial Times reported that the government has abandoned plans to raise income-tax rates ahead of the November 26 budget. Prime Minister Keir Starmer and Chancellor Rachel Reeves are said to be exploring alternative revenue options to close a £30 billion budget shortfall instead of adjusting basic and higher tax bands.

From a technical view, support stands near 1.3050, with resistance around 1.3190.

Silver Extends 10% Weekly Surge

Silver climbed toward $54 per ounce on Friday, extending weekly gains above 10% and nearing last month’s record high. Safe-haven demand remained firm even after the US government reopened, though the White House warned some October data may never be released. Strong Indian wedding-season demand and concerns about possible US tariffs added support, while the US Interior Department’s decision to classify silver as a critical mineral raised the risk of future trade actions.

From a technical view, resistance stands near $54.40, while support is located around $47.70.