The political turmoil in various regions has triggered significant volatility in the financial markets since the beginning of the week, continuing through Tuesday (October 7, 2025). France is facing a political crisis following the resignation of Prime Minister Sebastien Lecornu, who served just 27 days and had only recently formed a cabinet on Sunday.<\/p>\n
In Japan, Sanae Takaichi has been elected as the new Prime Minister, marking her as the country’s first female leader and one with a tendency towards fiscal stimulus. Meanwhile, in the United States, the government shutdown has entered its seventh day as the Senate once again failed to pass a temporary budget bill.<\/p>\n
The Democratic Party has once again rejected the proposed budget that would fund the government until November 21.<\/p>\n
GOLD<\/strong> Political issues in various countries have bolstered demand for Gold as a safe haven asset, bringing it closer to the $4,000 mark per troy ounce. The ongoing shutdown in the United States poses a risk of worsening labor market conditions, which may lead the market to anticipate more aggressive interest rate cuts from The Fed, thus supporting Gold’s performance.<\/p>\n OIL<\/strong> This sentiment is likely to maintain a positive outlook for Oil, particularly as its current position remains close to a four-month low.<\/p>\n EURUSD<\/strong> This negative sentiment may continue to impact the EURUSD exchange rate during the European trading session.<\/p>\n GBPUSD<\/strong> With no signs of an imminent resolution to the shutdown, GBPUSD could continue to receive positive sentiment.<\/p>\n USDJPY<\/strong> As previously mentioned, Takaichi is pro-stimulus, and when stimulus measures are introduced, the money supply will increase, leading to negative sentiment for the yen.<\/p>\n NASDAQ<\/strong> This uptick is supported by expectations that The Fed will be aggressive in cutting interest rates next year. Additionally, the sharp rise of the Nikkei index, which broke records following Takaichi’s election, has also contributed to a positive sentiment towards the Nasdaq.<\/p>\n The political turmoil in various regions has triggered significant volatility in the financial markets since the beginning of the week, continuing through Tuesday (October 7, 2025). France is facing a political crisis following the resignation of Prime Minister Sebastien Lecornu, who served just 27 days and had only recently formed a cabinet on Sunday. In […]<\/p>\n","protected":false},"author":4,"featured_media":21040,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5170,142],"tags":[5175,5174,5176,5178,5177,5168],"class_list":["post-91289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-summary","category-news","tag-cls10","tag-eurusd","tag-gbpusd","tag-nq","tag-usdjpy","tag-xauusd"],"yoast_head":"\n
The price of Gold (XAUUSD) surged by over $74 (740 pips) to reach $3,960.60 per troy ounce on Monday’s trading. At the start of Tuesday’s session, Gold further climbed to an all-time high of $3,977.31 per troy ounce.<\/p>\n
The price of Oil (CLS10) rose by more than $1 to $61.71 per barrel during Monday’s trading session. Oil benefited from positive sentiment after OPEC+ agreed to increase production by 137,000 barrels in November, although this figure is significantly lower than Saudi Arabia’s minimum request of 274,000 barrels.<\/p>\n
EURUSD experienced a drop of 900 points (90 pips) in the early part of last week but managed to recover slightly to close at 1.17098. The negative sentiment surrounding EURUSD was largely due to the political crisis in France, where Sebastien Lacornu became the fifth prime minister to resign in the past two years.<\/p>\n
GBPUSD ended the trading session relatively unchanged around 1.34788 after facing downward pressure at the start of the week. The rebound of GBPUSD indicates significant pressure on the US dollar due to the ongoing government shutdown.<\/p>\n
USDJPY surged by more than 2,800 points (280 pips) to 150.290 early in the week. The election of Takaichi as Prime Minister of Japan exerted downward pressure on the yen, pushing USDJPY even higher to 150.614 today, marking the highest level in over two months.<\/p>\n
The Nasdaq achieved a record high of 25,251 yesterday before closing at 25,182. The index appeared unfazed by the ongoing government shutdown in the US.<\/p>\n