Tuesday, October 7, 2025 — Market Overview
The US Dollar (USD) remains steady early Tuesday after starting the week with strong bullish momentum. Investors are shifting their attention to a series of scheduled speeches from key Federal Reserve (Fed) and European Central Bank (ECB) policymakers, which could provide fresh clues on future monetary policy directions. Meanwhile, ongoing political developments in France and the United States continue to shape broader market sentiment.
US Dollar Price Performance This Week
The table below shows the percentage change of the US Dollar (USD) against major currencies so far this week. The greenback continues to outperform the Japanese Yen (JPY) while showing mixed results against other peers.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF |
|---|---|---|---|---|---|---|---|
| USD | — | 0.31% | -0.03% | 0.78% | -0.01% | -0.20% | 0.04% |
| EUR | -0.31% | — | -0.45% | 0.39% | -0.36% | -0.54% | -0.31% |
| GBP | 0.03% | 0.45% | — | 0.95% | 0.09% | -0.09% | 0.14% |
| JPY | -0.78% | -0.39% | -0.95% | — | -0.75% | -1.03% | -0.81% |
(Data represents weekly percentage changes across major forex pairs.)
US Dollar Index and Political Headlines
The US Dollar Index (DXY) briefly hit a 10-day high near 98.50 before easing slightly late Monday, closing in positive territory. As of early Tuesday’s European session, DXY trades around 98.30, up 0.2% on the day.
In Washington, political gridlock continues as the Senate once again failed to pass bipartisan measures to restore government funding. President Donald Trump warned that continued impasse could result in federal layoffs but noted ongoing negotiations regarding Obamacare subsidies.
Meanwhile, US stock futures are slightly lower, with major indices retreating between 0.1% and 0.2%, reflecting cautious sentiment ahead of key speeches.
Euro Under Pressure Amid French Political Uncertainty
The Euro (EUR) remains on the defensive following the resignation of France’s recently appointed Prime Minister Sebastien Lecornu, sparking renewed political turmoil. President Emmanuel Macron faces the difficult decision of either appointing a new Prime Minister, dissolving parliament, or calling for snap elections—each carrying potential risks to political stability.
As a result, EUR/USD continues to trade below 1.1700, weighed by uncertainty surrounding France’s leadership and the broader implications for the Eurozone.
Japanese Yen Weakens Further as Nikkei Hits Record High
Japan’s Nikkei 225 Index extended gains to fresh record highs, fueled by optimism over a more expansionary fiscal policy under new Prime Minister Sanae Takaichi. The USD/JPY pair climbed past 150.50, marking its highest level in months.
Commenting on the sharp Yen depreciation, Finance Minister Katsunobu Kato stated that authorities are closely monitoring foreign exchange movements and emphasized the importance of maintaining currency stability aligned with economic fundamentals.
British Pound Holds Steady Amid EUR Weakness
The British Pound (GBP) ended Monday nearly unchanged against the Dollar as investors rotated capital out of the Euro. The EUR/GBP pair dropped about 0.3%, touching its lowest level since mid-September near 0.8670.
Early Tuesday, GBP/USD is edging slightly lower, trading around 1.3450, as traders remain cautious ahead of upcoming UK economic data releases and Fed commentary.
Gold Pulls Back Slightly After Setting Fresh Record High
Gold (XAU/USD) surged nearly 2% on Monday, reaching a new record high above $3,970 per ounce in Asian trading. The precious metal has since eased modestly to around $3,950 during the European session.
Strong safe-haven demand, combined with expectations of further Fed rate cuts and persistent global political uncertainty, continues to underpin bullish momentum in gold markets.
Key Takeaway:
- US Dollar steady amid global political uncertainty
- Euro pressured by French political risk
- Yen weakens as Nikkei rallies
- Gold remains in strong uptrend above $3,900