Euro Up on Political Relief, Yen and Silver Weaken (10.20.2025)

The euro climbed to $1.17, its strongest level in two weeks, after France avoided a government crisis when Prime Minister Sébastien Lecornu narrowly survived two no-confidence votes by agreeing to delay pension reforms. 

The yen weakened near 151 ahead of Japan’s leadership vote, while gold rebounded above $4,260 as traders awaited U.S.–China trade talks. The pound held above 1.34 after a volatile week, and silver retreated to $51.8 as easing trade tensions reduced safe-haven demand.

Euro Gains as France Avoids Government Crisis

The euro climbed to $1.17, its highest level since October 6, consolidating weekly gains supported by easing political uncertainty in France and a weaker US dollar. French Prime Minister Sébastien Lecornu narrowly survived two no-confidence votes on Thursday after agreeing to delay a disputed pension reform, averting a government crisis and temporarily easing pressure on President Emmanuel Macron ahead of challenging budget negotiations.

Technically, 1.1630 is the key support, while resistance is seen at 1.1710.

Yen Weakens as Japan Awaits Leadership Vote

The yen fell toward 151 per dollar on Monday as traders awaited Japan’s leadership vote to select the next prime minister. Sentiment improved after reports that the ruling LDP and Japan Innovation Party would form a coalition, paving the way for Sanae Takaichi to become Japan’s first female leader. Expectations of higher fiscal spending and continued loose policy under the “Takaichi trade” lifted stocks but weighed on bonds and the yen.

Resistance is at 151.60, while support holds at 149.60.

Gold Rebounds Ahead of U.S.–China Trade Talks

Gold rose to $4,260 per ounce on Monday, rebounding from Friday’s sharp decline as traders turned their attention to the upcoming US-China discussions. Treasury Secretary Scott Bessent is scheduled to meet Chinese Vice Premier He Lifeng this week, after President Donald Trump commented that a deal remains possible and that his proposed high tariffs are “unsustainable.” Meanwhile, the ongoing US government shutdown entered another week, adding to market uncertainty.

From a technical perspective, support is around 4220, and resistance is at 4300.

Pound Steady Above 1.34 After Volatile Week

The GBP/USD pair started the week on a subdued note after Friday’s volatile session, holding slightly above the 1.3400 level during Asian trade. However, the mixed market outlook calls for caution before anticipating a continuation of the recent rebound from the 1.3250–1.3245 zone, which marked its lowest level since early August.

From a technical perspective, support is around 1.3380, and resistance is at 1.3484.

Silver Retreats to $51.8 on Eased U.S.–China Tensions

Silver fell over 4% to $51.8 per ounce on Friday, retreating from a record $54.2 as improved risk appetite led investors to shift toward equities after President Donald Trump sought to ease US-China trade tensions. Despite the pullback, silver remains more than 3% higher for the week, marking its ninth consecutive weekly gain, earlier supported by loan fraud concerns at US regional banks that unsettled markets.

From a technical perspective, resistance is observed at 52.60, while support is located at 51.20.