Dollar Dips and Gold Rises as Markets Eye FOMC and Michigan Sentiment Data
The USD weakened last week amid the US government shutdown, boosting EUR, GBP, and gold.
This week, markets will watch US budget talks, FOMC minutes, and Michigan consumer expectations for clues on policy and sentiment, while gold remains supported by Dollar weakness.
USD Dips as Government Shutdown Sparks Market Watch
The USD traded lower during last week’s session due to the shutting down of the US government on Wednesday due to Congress’s failure to pass a funding bill. Because of this disruption, the scheduled nonfarm payroll report was not released and it is now pending for this week. Overall, the situation in the US kept the Dollar muted, allowing the EUR and GBP to close the trading session higher. In Europe, the Consumer Price Index (CPI) remained elevated, adding pressure on the ECB to maintain its current policy for now.
As for this week, traders and investors will primarily focus on the outcome of negotiations between Republicans and Democrats to approve the budget and reopen the US government. Several Fed and ECB officials are scheduled to speak, providing more insight into future policy decisions. Additionally, the FOMC is set to release this month’s minutes.
Economic Calendar Outlook – FOMC Minutes & US Michigan Consumer Expectation
The events on the economic calendar to keep an eye on this week are as follows:
Wednesday: The release of the FOMC minutes will shine a light on the details of the Fed’s discussions on the interest rates, inflation, and future policy direction.
Friday: The release of the US Michigan consumer expectation will provide insight into consumer sentiment and spending expectations.
Technical Outlook – EURUSD & GBPUSD
Clients technical positions:
EUR/USD: sell 50% buy 50%
GBP/USD: sell 50% buy 50%
EURUSD chart, October 4, 2025. Source: TenTrade.com
GBPUSD chart, October 4, 2025. Source: TenTrade.com
Gold Wins on US Government Shutdown
GOLD continues to trade higher amid the US government shutdown and ahead of the release of the FOMC minutes. Weakness in the US Dollar during the week has once again boosted demand for gold.
Gold prices are expected to remain elevated for the foreseeable future.
XAUUSD chart, October 4, 2025. Source: TenTrade.com
For more detailed economic calendar events please visit our live economic calendar on:
https://tentrade.com/economic-calendar/
*The material does not contain an offer of, or solicitation for, a transaction in any financial instruments. TenTrade accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all your invested capital, so please make sure that you fully understand the risks involved.