Renewed optimism that the protracted US government shutdown may be nearing resolution has lifted global risk sentiment. Equity markets are broadly advancing, while the dollar shows no clear direction, fluctuating against major peers. The yen is weakening as US yields edge higher, and commodity-linked currencies outperform. Gold rebounds strongly after weeks of losses, and oil remains confined to recent ranges.

Asia Pacific Markets

In the region, currency and rate dynamics shape trading conditions. After a sharp two-day rise took the dollar toward JPY154.45, it eased before recovering again with the climb in US yields. Initial support is clustered just below JPY154, with the retracement markers pointing to key levels near JPY152.6.
Meanwhile, the Australian dollar shook off last week’s tight consolidation below $0.6500, jumping toward $0.6540 and reaching a key recovery threshold. With the RBA holding policy steady and local data offering limited influence, markets look to upcoming expiries and rate expectations for direction.

European Markets

The euro has nearly retraced most of its decline following last month’s hawkish Fed move, stabilizing in a narrow band around $1.155–1.159. Prospects above $1.1620 hinge more on price behavior than incoming data, even with Germany’s ZEW survey approaching.
Sterling, after sliding to six-month lows, rebounded once $1.30 proved resilient. Momentum carried it beyond $1.3180, with room to extend into the $1.3230–1.3265 range. Despite signs of a cooling labor market, expectations for a December BoE cut remain largely intact.

American Markets

The Dollar Index is holding within last Friday’s boundaries as recent losses unwind over half of the advance triggered by the Fed’s hawkish cut. With the government still closed but a potential agreement reportedly close, trading reflects shifting confidence throughout the Asia–European sessions. Near-term technical focus lies around the 99.20–25 zone, with a deeper pullback pointing toward the 98.75 retracement level. Although the economic calendar is empty and tomorrow’s bond-market holiday may mute activity, liquidity pressures tied to elevated Treasury balances are partly offset by the Fed’s standing repo facility