17/11/2025
Political instability in France is the dominant market driver in Europe, with Prime Minister Sebastien Lecornu’s resignation leading to a sell-off in the Euro.
The US Dollar (USD) is starting the week with a firmer bias, with the USD Index (DXY) jumping 0.3% to trade near 98.00. This strength comes despite the continuing US federal government shutdown, which enters its sixth day.
The US Dollar (USD) managed to stabilise and stay resilient against its rivals on Thursday, following bearish action seen in the first half of the week. The US federal government shutdown enters its third day.
Uncertainty continues to grip the markets as the US government shutdown enters its second day, causing the US Dollar (USD) to struggle and the USD Index to edge lower for the fifth consecutive trading day.
The US Dollar (USD) remains under bearish pressure on the first trading day of the fourth quarter after the US Congress failed to pass a funding measure and the US federal government officially shut down.
As October begins, market attention will focus on whether the US government avoids a shutdown and how this impacts Fed decision-making. In the UK, BoE commentary and upcoming inflation data will be pivotal in shaping GBP sentiment, while fiscal concerns remain a headwind.