Countdown to U.S. government shutdown, global market confidence significantly boosted at the beginning of this week

On November 10, U.S. stock index futures gained traction at the start of the new week, with the U.S. dollar (USD) struggling to find demand as market sentiment improved on growing optimism that the U.S. federal government shutdown is fy.xmxmxm.cning to an end. In the absence of high-impact data releases, investors will keep a close eye on U.S. politics on Monday.

The U.S. Senate voted 60-40 to pass a temporary funding bill to reopen the government after a group of centrist Democrats negotiated a deal. The approved package needs to be passed by the House of Representatives before being sent to U.S. President Donald Trump for his signature. Reflecting the risk-positive market sentiment, U.S. stock index futures last rose 0.3% to 1.3% on the day. Meanwhile, the U.S. dollar index was almost unchanged at 99.60.

Basic trends in the foreign exchange market:

After rising slightly last week, the EUR/USD pair stabilized at just above 1.1550 during the European session on Monday. The European Economic Calendar will release Sentix investor sentiment data for November.

In early European trading, USD/JPY edged higher, trading in the positive zone near 154.00. Japanese Prime Minister Sanae Takaichi's economic adviser Takuji Aida warned on Monday that there would be considerable risks in the Bank of Japan (BoJ) raising interest rates in December, and believed that if the Bank of Japan can see the economy achieve solid growth in fiscal 2026, then raising interest rates in January will be more feasible. Earlier in the day, data from Japan showed that the leading economic index edged up to 108 from 107 in September.

GBP/USD remains in a consolidation phase near 1.3150 after three consecutive days of gains. On Tuesday, the Office for National Statistics will publish figures for October.labor market data.

Bulk market fundamentals:

After closing essentially flat last week, gold formed a bullish momentum on Monday, last rising nearly 2% near $4,080.

Analysis of major currency trends:

Euro: Intraday bias currently remains neutral. As long as the 55-day EMA (currently at 1.1623) remains unchanged, further losses will remain favorable. Below 1.1467 will resume the decline from the 1.1917 to 1.1390 ​​support. However, continued trading above the 55-day EMA would see the decline from 1.1971 as merely a correction fy.xmxmxm.cnplete with further gains towards the 1.1727 resistance.

GBP: The intraday bias for GBP/USD remains neutral, with more consolidation above 1.3008. As long as the 1.3247 support level turns into resistance, further losses are expected. The target for a breakout of 1.3008 will be from 1.3725 to 1.2831, with a forecast of 1.3787 to 1.3140. Nonetheless, a firm break above 1.3247 would indicate that the decline from 1.3787 has fy.xmxmxm.cnpleted the correction.

JPY: Looking at the bigger picture, the long-term downtrend from 1.0342 (2017 high) is still ongoing. The next target is 0.7382 with 100% prediction of 1.0146 (2022 high) from 0.9200 to 0.8332. Regardless, the outlook will remain bearish as long as the 0.8332 support-turned-resistance level (2023 low) holds.

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