EUR/USD: Euro benefits from political risk reduction – MUFG

FXStreet Insights Team FXStreet

The EUR/USD has seen a rebound due to broad-based US Dollar weakness and easing political risks in France. The pair is approaching last year's high of 1.1919, with a potential break above this level opening the door for a rise above 1.2000. MUFG Senior Currency Analyst Lee Hardman highlights the impact of US policy uncertainty and the recent political developments in France on the Euro's performance.

Euro gains amid US Dollar weakness

"Broad-based US dollar weakness has helped to lift EUR/USD back to within touching distance of the high from last year at 1.1919 from 17th September. A break above that level would open the door for the pair to rise back above the 1.2000-level for the first time since the first half of 2021."

"Heightened US policy uncertainty at the start of this year is contributing to a loss of confidence in the US dollar in the near-term as evident by the recent divergence between yield spreads and US dollar performance."

"At the same time, the euro has benefitted from a reduction in political and fiscal risks in France over the past week."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD turns lower toward 0.7000 after mixed Australian jobs data

AUD/USD is losing ground toward 0.7000 in the Asian session on Thursday, following the release of the Australian August jobs report, which showed that the Unemployment Rate rose to 4.6% versus 4.5% expected, while Employment Change beat estimates, arriving at 39.5K. Traders also remain unnerved ahead of the critical Trump-Xi meeting.

USD/JPY keeps the red near 158.00 as Japanese Yen firms up

USD/JPY retreats from three-week highs and holds losses near 158.00 in the Asian session on Thursday. Surging Japanese bond yields lift the Yen amid looming intervention risks, while the US Dollar preserves overnight gains to a two-month high amid hawkish Fed bets and elevated US bond yields.

Gold flat lines below $4,300 as Fed hike bets cap upside ahead of Trump-Xi meet

Gold is consolidating near a one-week low, touched during the Asian session, as traders wait on the sidelines ahead of a crucial meeting between US President Donald Trump and his Chinese counterpart Xi Jinping. Expectations for a major announcement are low, though market players will look for any progress on rare earths, technology restrictions, and an extension of the current US-China truce.

Bitcoin slips to $84,000 on rate hike bets – Worldcoin, Pepe lead losses

Bitcoin (BTC) price trades below $84,000 on Thursday, extending losses after a 2% decline the previous day. The pullback aligns with renewed inflation and rate-hike concerns, as US composite and services PMIs rose to 58.4 and 58.7 in September. Worldcoin (WLD) and Pepe (PEPE) recorded double-digit losses over the last 24 hours, emerging as the worst performers.

US Treasury Secretary Bessent says US-China trade truce extended through January 10

US Treasury Secretary Scott Bessent said that the United States and China have agreed to extend a bilateral trade truce that was set to expire in November through January 10, Blomoberg reported on Wednesday. This move came after Bessent and China’s Vice Premier He Lifeng held an unscheduled meeting in Washington.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.