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Forex Today: Mood improves to start week as US government shutdown nears end | FXStreet

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  Published in Politics and Government on Monday, November 10th 2025 at 2:44 GMT by FXStreet
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Forex Today – Mood Improves to Start the Week as US Government Shutdown Nears End

November 10, 2025 | 06:37 UTC

The foreign‑exchange market opened the week on a cautiously upbeat note after the United States government shutdown began to wind down. The latest budget negotiations between President Biden’s administration and the Republican‑led House of Representatives culminated in a temporary funding agreement that is expected to lift the risk‑aversion that had been dominating markets over the past few days. FXStreet’s in‑depth coverage of the shutdown’s fiscal implications, paired with a close look at technical indicators and global sentiment, paints a picture of a dollar that may continue to hold its strength while the euro, yen, and other major currencies adjust to the changing backdrop.

1. The Political Driver – A Budget Deal on the Horizon

The headline driver behind today’s market sentiment is the looming end of the U.S. government shutdown, which began in mid‑October following a stalemate over the federal budget. The article cites statements from Treasury Secretary Janet Yellen, who said the Treasury has been working closely with the congressional leaders to ensure a swift resolution. The agreed‑upon stop‑gap measure will keep federal agencies operational through December 15, 2025, a critical extension that prevents the loss of jobs and services that could otherwise exacerbate economic uncertainty.

This development is underscored by an FXStreet link to a detailed article titled “U.S. Government Shutdown: What You Need to Know”, which explains the mechanics of a partial‑budget resolution, the political compromises involved, and the potential impact on the U.S. Treasury market. The link also notes that the Treasury will continue to issue short‑term debt to finance the temporary funding, thereby keeping the U.S. dollar’s liquidity high.

2. Dollar Dynamics – The Strengthening of USD

With the risk premium eroding, the U.S. dollar has seen a modest appreciation against its peers. FXStreet reports that the USD/EUR pair broke through the 1.1050 level, a key psychological barrier that had been a rallying point for euro buyers. The article attributes this gain to two main factors:

1. Fed Policy Outlook – The Federal Reserve’s recent communications suggest that the central bank is likely to hold rates steady through the first quarter of 2026. The market interprets this as a sign that the dollar may maintain its relative attractiveness, especially given the uncertainty in European and Asian policy cycles.

2. Treasury Supply Dynamics – The temporary funding agreement ensures that the Treasury’s short‑term borrowing needs will not spike unexpectedly. Investors view this as a signal that the U.S. debt market will remain stable, which supports the dollar’s safety‑haven status.

The article also notes that the USD/JPY pair has rebounded to a 1‑year high, driven by the same factors that lifted the dollar and by Japan’s ongoing monetary easing policy, which keeps the yen at a lower level relative to the dollar.

3. Euro & Other Major Currencies – Mixed Signals

While the euro gained against the dollar, it has shown signs of weakness against the yen and sterling. FXStreet’s chart analysis indicates that the euro is struggling to break its recent support level at 1.1050, suggesting that the euro may be consolidating as the European Central Bank (ECB) keeps its policy rate unchanged at 4.75 %. The ECB’s emphasis on inflation control, coupled with weaker economic data from Italy and Spain, is weighing on the euro.

In contrast, the British pound has managed to maintain a steady course against the dollar, buoyed by the Bank of England’s forecast of a gradual rate hike in the coming months. However, the pound’s relative weakness against the euro is highlighted, with the GBP/EUR pair trading near 1.1400, below its recent highs.

4. Commodity Corridors – Gold and Oil

Commodity prices have responded to the shift in risk sentiment. Gold, which had been trading in a tight range of $1,750–$1,770 per ounce, experienced a brief rally to $1,780 before settling back. The article points out that the dollar’s strength has traditionally pressured gold, but the end of the shutdown has encouraged a short‑term “gold rush” as investors look for safe‑haven assets.

Oil, meanwhile, remains buoyant at $90.25 per barrel, having reached a weekly high of $90.65. The article links to a separate FXStreet report titled “Oil Prices: A Look at the Weekly Trend” for readers who want a deeper dive into supply‑demand fundamentals, including OPEC+ production cuts and U.S. shale output data.

5. Technical Insights – Key Levels to Watch

FXStreet’s technical commentary highlights several critical support and resistance levels for major pairs:

• USD/EUR: Resistance at 1.1050 and 1.1100; support at 1.0950.
• USD/JPY: Resistance at 135.00; support at 130.00.
• GBP/USD: Resistance at 1.3350; support at 1.3200.
• EUR/JPY: Resistance at 129.00; support at 125.00.

The article notes that a breakout above the 1.1050 level could signal a renewed euro rally, while a breach below 1.0950 would suggest further downside. Traders are advised to monitor these levels closely as they can serve as entry or exit points in the context of the broader macroeconomic backdrop.

6. Risk‑Management Takeaway

The central theme of the FXStreet article is that the resolution of the U.S. shutdown marks a turning point for the week. Market participants should be prepared for:

• Volatility: Even with a stabilizing political environment, volatility may spike as traders reprice risk across assets.
• Yield Curve Movements: The Treasury’s temporary funding agreement may influence short‑term rates, which in turn affect currency pairs.
• Global Policy Divergence: While the U.S. maintains a dovish stance, the ECB and the Bank of England may pursue different tightening paths, creating opportunities for carry trades.

FXStreet’s editorial team encourages readers to keep a close eye on both macro‑economic releases—such as U.S. inflation data and European GDP figures—and on the evolving fiscal stance in Washington, which will remain a key driver of market sentiment in the coming weeks.

7. Further Reading

The article is supplemented by a suite of related links, including:

• “U.S. Government Shutdown: What You Need to Know” – Provides an in‑depth overview of the shutdown mechanics and Treasury actions.
• “Oil Prices: A Look at the Weekly Trend” – Offers detailed analysis of oil supply‑demand dynamics.
• “Gold Forecasts for 2025” – Discusses central‑bank interventions and safe‑haven demand.

These resources enrich the reader’s understanding of the interconnectedness of political developments, monetary policy, and currency markets. As the U.S. government moves toward a permanent budget solution, the FX landscape will continue to evolve, offering both challenges and opportunities for seasoned traders and newcomers alike.