Tech Profit-Taking Sinks Asia Equities; Gold Pulls Back as USDX Holds High

The euro slipped to an eight-week low near 1.1540 on Thursday, pressured by renewed political uncertainty in France and disappointing German trade data. The EUR/USD ended the session below the 1.1600 level, down more than 0.5%, as the U.S. dollar extended its weekly advance.

Investor sentiment toward the euro deteriorated after French Prime Minister Sébastien Lecornu resigned, sparking fresh concerns about fiscal policy and government stability. Markets are closely watching whether President Emmanuel Macron can swiftly appoint a successor and rebuild confidence. Lecornu is reportedly continuing discussions with opposition leaders, with a new appointment expected by Friday.

Adding to the euro’s woes, German exports came in below expectations while imports declined sharply, signaling persistent weakness in the Eurozone’s largest economy.

Across the Atlantic the U.S Dollar extended its gains, supported by risk aversion and cautious remarks from Federal Reserve officials. The ongoing U.S. government shutdown, now in its ninth day, has heightened investor concern. House Minority Leader Hakeem Jeffries noted the continued lack of dialogue between Republican and Democratic negotiators.

With political uncertainty in France, weak Eurozone data, and persistent dollar strength, analysts warn the EUR/USD could remain under pressure heading into next week.

Gold prices fell on Thursday, slipping back below the $4,000 per ounce threshold after briefly breaching the record level in the previous session. The retreat came as the U.S. dollar strengthened and investors locked in profits following news of a ceasefire agreement between Israel and Hamas.

The U.S. Dollar Index rose more than 0.5%, hovering near a two-month high. The stronger greenback made dollar-denominated bullion more expensive for overseas buyers, adding downward pressure on precious metals.

Moreover, the ceasefire marks the first phase of U.S. President Donald Trump’s diplomatic initiative aimed at ending the conflict in Gaza, a development that briefly cooled safe-haven demand.

Gold’s record-breaking rally earlier this week saw prices hit an all-time high extending a 52% gain year-to-date. The precious metal’s momentum has been underpinned by geopolitical tensions, robust central bank purchases, rising ETF inflows, and expectations of further U.S. rate cuts amid tariff-related economic uncertainty.

Oil prices declined on Thursday after Israel and Hamas reached a ceasefire agreement, easing geopolitical tensions that had supported crude markets in recent weeks.

The agreement, signed on Thursday, marks the first phase of U.S. President Donald Trump’s initiative to end the conflict in Gaza. Under the deal, hostilities will cease, Israel will partially withdraw from Gaza, and Hamas will release all remaining hostages in exchange for the release of hundreds of Palestinian prisoners.

Earlier in the week, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) agreed to a smaller-than-expected production hike for November, helping to ease concerns about oversupply.

In the U.S., ongoing government shutdown negotiations have stalled in the Senate, with neither Democratic nor Republican funding proposals securing enough support for passage.

With geopolitical risks in the Middle East easing and macroeconomic uncertainties lingering, analysts expect oil prices to remain range-bound in the near term, supported by OPEC+ production discipline but capped by slowing global demand and stronger U.S. supply.

U.S. equities closed lower on Thursday, retreating from record levels as the tech sector paused its recent rally and investors digested comments from Federal Reserve officials on the interest rate outlook alongside the start of the corporate earnings season.

Markets continued to assess minutes from the Federal Reserve’s September meeting, which reaffirmed a 25-basis-point rate cut and hinted that further easing may come before year-end. However, it also revealed division among policymakers over how quickly to proceed, with some citing slowing labor market conditions and others warning about persistent inflation pressures.

Adding to uncertainty, an ongoing U.S. government shutdown—now in its second week—has shown little sign of resolution, raising concerns that the release of key economic data could be delayed.

On the earnings front, PepsiCo reported better-than-expected Q3 results, driven by solid demand for healthier beverages and energy drinks. CEO Ramon Laguarta said the company plans to expand product innovation and revamp packaging to appeal to cost-conscious U.S. consumers.

Delta Air Lines also delivered upbeat results, saying the government shutdown has not caused “material impact” on operations. CEO Ed Bastian told the Financial Times that current disruptions are mild compared to those during the 2018–2019 closure. The carrier posted record operating revenue and raised its annual guidance, sending its shares up 4%.