Market Cautious Ahead of NFP as Dollar Strengthens (11.20.2025)

Global markets turned defensive as tech-heavy indices weakened and concerns over slowing growth and shifting central bank expectations pressured sentiment. 

Major forex pairs extended mixed moves as the stronger US Dollar pressured EUR/USD and the Yen, while GBP/USD stabilized before the delayed NFP release. Gold and Silver held within ranges, with risk sentiment and fading Fed cut expectations shaping overall direction. Key support and resistance levels remain central for traders across all instruments.

EUR/USD Falls as Fed Cut Odds Shrink

EUR/USD fell for a fifth consecutive session, nearing a two-week low around 1.1500 in Europe as the US Dollar strengthened on reduced expectations for a December Fed rate cut. The US Dollar Index remained near a five-month high around 100.30, while market odds for a December cut dropped to 29.6% from 50.1% earlier in the week.

Technically, 1.1470 is the key support, while resistance is seen at 1.1625.

Yen Slides to 157.60 on Fiscal Worries

The Japanese Yen fell to 157.60, its weakest level since mid-February, as the US Dollar continued to gain. Worries over Japan’s fiscal outlook and Prime Minister Takaichi’s new stimulus package pressured the currency, while the Q3 contraction increased expectations that the BoJ may postpone rate hikes. A firmer risk appetite also reduced the Yen’s safe-haven appeal. At the same time, the USD strengthened as odds of a December Fed cut faded, and Japan’s verbal interventions provided limited support ahead of the delayed NFP report.

Technically, resistance stands near 158.95, while support is firm at 155.20.

Gold Holds Range as Dollar Firms

Gold traded in a narrow range during Thursday’s Asian session as markets waited for the delayed US NFP report before making new moves. A firmer US Dollar, supported by reduced expectations of another Fed rate cut, continued to weigh on the metal. Improved equity sentiment also softened safe-haven demand, even as the prolonged shutdown raised concerns about slowing US momentum. This combination kept traders cautious about extending the week’s rebound from below the $4,000 level.

From a technical view, support is seen near $4025, while resistance is positioned around $4110.

GBP/USD Steadies Before NFP

GBP/USD edged higher toward 1.3060 on Thursday, pausing its four-day decline as traders stayed cautious ahead of the delayed US NFP report. UK CPI eased to 3.6 percent year over year in October, in line with expectations and strengthening the case for a potential December BoE rate cut, which remains a downside risk for the Pound. The November 26 government budget is also expected to influence the BoE’s policy outlook.

From a technical view, support stands near 1.3020, with resistance around 1.3190.

Silver Slips Below $51 Ahead of NFP

Silver dipped below $51.00 in Thursday’s Asian session after briefly testing $51.85, pulling back further from Wednesday’s weekly high. The move reflects a firmer US Dollar and cautious sentiment ahead of the delayed US NFP report. Even so, technical indicators show the downside is not fully established, suggesting sellers should remain careful as key support levels are still intact.

From a technical view, resistance stands near $52.50, while support is located around $49.50.