27/10/2025
The focus today is entirely on central bank officials, including Federal Reserve (Fed) Chair Jerome Powell, who will deliver welcoming remarks at the Community Bank Conference via a pre-recorded video. Fed Governor Michelle Bowman, Minneapolis Fed President Neel Kashkari, and Fed Governor Michael Barr will also be speaking.
The US Dollar (USD) is extending its rebound midweek, with the USD Index climbing to its highest level since early August near 99.00. This strength comes from increased safe-haven demand due to political developments in Japan and France.
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.