Markets Gain as Trade Optimism Lifts Sentiment (10.27.2025)

The euro extended gains for a fourth session, trading near $1.1640 on Monday as ECB comments signaled confidence in current policy. 

Risk appetite improved globally after reports of progress in U.S.–China trade talks, with President Trump and Xi Jinping expected to meet next week. The yen weakened toward 153, gold and silver slipped as safe-haven demand eased, and the pound found support above $1.33 ahead of key U.S. and U.K. events.

Euro Rises for Fourth Day as ECB Signals Stability

EUR/USD extended its advance for a fourth straight session, trading near 1.1640 in Monday’s Asian session. The Euro gained support after ECB Governing Council member José Luis Escrivá said on Sunday that he is comfortable with current interest rate levels, adding that inflation is in line with the target, according to Bloomberg. Later today, investors will watch the German IFO Business Climate Survey for guidance.

Technically, resistance is seen near 1.1650, with solid support at 1.1575.

Yen Slips as Trade Deal Hopes Lift Dollar

USD/JPY climbed toward 153.15 in early Asian trading on Monday. The pair gained strength after the US and China reached a framework for a possible trade deal ahead of the Trump–Xi meeting. Meanwhile, US CPI inflation increased by 3.0% year-over-year in September, coming in below expectations. Improved risk sentiment has weakened the Japanese Yen (JPY) against the US Dollar (USD), allowing the pair to maintain its upward momentum around 153.15.

Technically, resistance stands near 153.70, while support is firm at 150.30.

Gold Extends Losses as Trade Talks Ease Tensions

Gold fell below $4,100, extending Friday’s losses as progress in US–China talks reduced safe-haven demand. After two days of negotiations in Malaysia, officials reached an initial deal on export controls, fentanyl, agriculture, and shipping tariffs, paving the way for Trump and Xi to finalize it in South Korea this week. Investors also await key central bank decisions, with the Fed expected to cut rates by 25 bps after soft US CPI data, while the ECB and BoJ are likely to keep policies unchanged.

From a technical view, key support lies near $4,065, while resistance is seen around $4,150.

Sterling Finds Support Above 1.33 Before Key Events

GBP/USD edged higher, ending a six-day losing streak as the US dollar weakened. However, BoE rate-cut expectations and UK fiscal concerns may cap gains. Traders remain cautious ahead of the FOMC decision, the Trump–Xi meeting, and US PCE data. The pair trades steadily above 1.3300 in Asia but lacks strong momentum, with the overall outlook still favoring further downside.

From a technical view, support stands near 1.3300, with resistance around 1.3425.

Silver Steadies Near $48.30 amid Risk Appetite

Silver hovered around $48.30, down 0.25% on the day, extending its slide after a steep 7% drop in the prior session. The metal faced renewed selling as investors shifted toward risk assets amid optimism over U.S.-China trade talks. Sentiment improved after President Donald Trump said on Monday that a “really fair and really great” trade deal could be finalized at next week’s APEC Summit in South Korea.

From a technical view, resistance stands near $49.25, while support is located around $47.50.