Markets Mixed as Dollar Holds and Safe-Haven Demand (10.10.2025)

The euro edged higher to 1.1575 after recent declines, stabilizing despite lingering political instability in France and concerns over the prolonged U.S. government shutdown. 

The yen weakened as USD/JPY climbed toward 153.05, supported by dollar strength and cautious market sentiment. Gold found renewed support near $3,960, remaining within an ascending channel after easing from record highs. Meanwhile, sterling extended losses to 1.3300 amid risk aversion, and silver advanced toward $49.70, driven by safe-haven demand and expectations of further Fed rate cuts.

Euro Firms Modestly After Recent Losses

EUR/USD recovered toward 1.1575 during Friday’s Asian session, as traders reassessed sentiment following recent losses. Ongoing political instability in France continues to weigh on the euro, keeping downside risks in focus. Meanwhile, investors remain attentive to any signs of progress in resolving the prolonged US government shutdown.

Technically, 1.1510 is the key support, while resistance is seen at 1.1600.

USD/JPY Climbs Despite Persistent U.S. Shutdown

USD/JPY climbed toward 153.05 in early Asian trading on Friday, supported by renewed dollar strength. Japanese politician Sanae Takaichi said she does not intend to let the yen depreciate excessively, helping to steady sentiment. Meanwhile, the US government shutdown has entered its tenth day, keeping investors cautious.

Resistance is at 153.90, while support holds at 152.40.

Gold Finds Support Within Ascending Channel

Gold attracts renewed buying interest around $3,960, pausing its decline from Wednesday’s record high of $4,059. The US Dollar experiences a modest correction as traders take profits amid a cautious market mood and dovish remarks from Fed officials, ahead of upcoming sentiment figures. On the daily chart, gold continues to trade within an ascending channel, while the RSI has eased from overbought levels.

From a technical perspective, support is around 3925, and resistance is at 4020.

GBP/USD Extends Losses, Hits Early-August Levels

GBP/USD extended its steep decline on Thursday, falling nearly 0.8% to reach 1.3300 for the first time since early August. Rising risk aversion increased demand for the safe-haven US Dollar, while the ongoing US government shutdown with no clear resolution continued to weigh on market sentiment.

From a technical perspective, support is around 1.3230, and resistance is at 1.3390.

Safe-Haven Demand Lifts Silver Toward $49.70

Silver prices advanced toward $49.70 during Friday’s Asian session, supported by persistent economic uncertainty, ongoing geopolitical tensions, and rising expectations of Federal Reserve rate cuts. Later in the day, attention will turn to the preliminary University of Michigan Consumer Sentiment report and remarks from Fed officials.

From a technical perspective, resistance is observed at 50.20, while support is located at 48.70.