The financial markets experienced high volatility during trading on Monday (October 6, 2025). The ongoing government shutdown in the United States, along with the election of Japan’s new Prime Minister, has triggered significant market movements since early this morning. As European trading began, the resignation of French Prime Minister Sebastien Lecornu further intensified market volatility.<\/p>\n
Lecornu’s unexpected resignation led to a sharp drop in the EURUSD by 900 points (90 pips) to 1.16519 as of this afternoon. Having just taken office in early September and having announced his cabinet only last Sunday, this abrupt exit has plunged France into a political crisis, placing additional pressure on the EURUSD.<\/p>\n
Conversely, this crisis has heightened the appeal of Gold as a safe haven<\/em>, driving its price up by more than US$63 (6300 pips) to US$3,949.69 per troy ounce in today\u2019s trading. This marks a new record high and brings it closer to the psychological level of US$4,000 per troy ounce.<\/p>\n Gold has also benefited from the U.S. government shutdown, which poses a risk of government employee layoffs. This situation could worsen labor market conditions, leading the market to believe that the Federal Reserve may be compelled to cut interest rates more aggressively. Such scenarios have made Gold even more attractive to investors.<\/p>\n Meanwhile, USDJPY surged nearly 3,000 points (300 pips) to 150.474, reaching a two-month high. The yen’s value has plummeted following the election of Sanae Takaichi as Japan’s Prime Minister. Takaichi not only becomes Japan’s first female Prime Minister but is also seen as a proponent of fiscal stimulus, further weakening the yen and causing the USDJPY to skyrocket.<\/p>\n","protected":false},"excerpt":{"rendered":" The financial markets experienced high volatility during trading on Monday (October 6, 2025). The ongoing government shutdown in the United States, along with the election of Japan’s new Prime Minister, has triggered significant market movements since early this morning. As European trading began, the resignation of French Prime Minister Sebastien Lecornu further intensified market volatility. […]<\/p>\n","protected":false},"author":4,"featured_media":91107,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[142,5173],"tags":[5174,5177,5168],"class_list":["post-91111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-trading-analysis","tag-eurusd","tag-usdjpy","tag-xauusd"],"yoast_head":"\n