Global financial markets entered a “wait-and-see” mode as traders brace for comments from key central bank officials — especially from the Federal Reserve, the European Central Bank (ECB), and the Bank of Canada. The uncertainty has been amplified by the ongoing U.S. government shutdown, which has delayed the release of major economic data.
Gold Surges to Fresh All-Time High
The precious metal continued its upward momentum, breaking above US$ 4,240 per ounce earlier in the session before easing slightly. Still, gold remains comfortably above the US$ 4,200 level as investors seek safety amid persistent global uncertainty — reaffirming its role as the ultimate safe-haven asset.
U.S. Dollar Softens
The U.S. dollar weakened against most major currencies this week, with the steepest losses seen versus the Swiss franc. The move reflected a dovish market bias toward the Fed’s policy outlook and ongoing trade tensions between the U.S. and China.
Central Banks Take the Spotlight
All eyes are now on speeches from key Fed officials, including Christopher Waller and Michelle Bowman, while ECB President Christine Lagarde is set to address the IMF forum on global economic conditions. Any hint of a policy shift could spark volatility across forex and bond markets.
Currency & Regional Market Highlights
- EUR/USD remains in consolidation around 1.1650 after two consecutive days of gains.
- GBP/USD hovers above 1.3400 following U.K. GDP data showing modest growth of +0.1% in August.
- AUD/USD edged lower despite job gains in Australia, as unemployment unexpectedly ticked higher.
- USD/JPY stabilized near 151.00, after dropping roughly 0.8% over the past two sessions.
Key Takeaways
- Markets are waiting for clear guidance — whether policymakers will lean dovish or maintain a hawkish stance.
- The U.S. shutdown limits key economic insights, leaving markets vulnerable to sharp moves driven by central bank commentary.
- Gold reaffirms its safe-haven appeal, reaching a new record high amid fears of prolonged policy uncertainty.
- Currencies and global bond yields remain sensitive to any signals from central banks in the U.S., Europe, and Canada — where even a single policy comment could shift sentiment within hours.