French Turmoil and Weak Data Move Markets (10.09.2025)

The euro fell toward $1.16 after French political instability and weak German industrial data sparked renewed pressure on the single currency. The yen remained near multi-month lows as Japan’s soft wage figures and leadership transition pointed to prolonged policy easing. 

Gold eased from record highs above $4,000 following reports of progress in Middle East peace talks, while silver held close to its record amid firm Fed cut expectations. The pound steadied after FOMC minutes revealed division among policymakers on further rate reductions.

Euro Falls on French Turmoil and Weak German Data

The euro fell toward $1.16, its lowest since late August, as French political turmoil and weak German data rattled markets. Macron faced calls for early elections after PM Sébastien Lecornu’s resignation, though Lecornu ruled out dissolving parliament. In Germany, industrial output dropped 4.3% in August, the sharpest fall since March 2022, led by a decline in car production.

Technically, 1.1570 is the key support, while resistance is seen at 1.1685.

Yen Flat Near 152.5 Amid Weak Data

The yen hovered near 152.5 per dollar, close to its weakest since February, as weak data and political shifts lowered BoJ hike expectations. Sanae Takaichi’s leadership win increased hopes for fiscal stimulus and loose policy. Real wages fell 1.4% in August, marking an eighth monthly decline, while BoJ Governor Ueda said hikes remain possible if growth and inflation stay on track.

Resistance is at 153.70, while support holds at 151.50.

Gold Eases from Record Highs on Geopolitical Calm

Gold slipped to about $4,010 per ounce, pausing its record rally as profit-taking followed easing geopolitical tensions. President Trump announced that Israel and Hamas reached the first stage of a peace deal to end the two-year conflict, confirmed by Israeli, Hamas, and Qatari officials. Despite the pullback, gold’s broader uptrend remains intact, supported by global uncertainty and expectations of a dovish Fed.

From a technical perspective, support is around 4001, and resistance is at 4059.

Pound Steady as Fed Minutes Signal Split on Cuts

GBP/USD edged slightly higher near 1.3405 in early Asian trade on Thursday. The FOMC minutes released Wednesday showed most Fed officials support rate cuts, though some favor a more cautious approach. Meanwhile, BoE’s Pill stressed the importance of maintaining a prudent monetary policy stance.

From a technical perspective, support is around 1.3320, and resistance is at 1.3490.

Silver Holds Near Record High as Fed Cut Bets Grow

Silver traded just below Wednesday’s record high of $49.55. As a non-yielding asset, it may gain further after the FOMC minutes signaled possible additional rate cuts. The U.S. government shutdown entered its ninth day with no resolution, as the Senate again rejected rival budget proposals.

From a technical perspective, resistance is observed at 49.60, while support is located at 48.70.