Turkey’s current account balance hit $1.112 billion in September, topping the expected $1 billion. This positive surprise suggests a slight improvement in the country’s economy. In the UK, the labor market shows signs of weakness. The unemployment rate rose to a pandemic high in the third quarter. Fewer people are on payrolls, and this decline is likely to continue into October.

Gold Reaches Three-Week High

Gold saw a temporary drop but bounced back to just below a three-week high. This change aligns with good news about the reopening of the US government, which is shifting risk sentiment and influencing gold prices. Chainlink is stable around $15.35 as demand grows. Increased staking rewards and activity among large investors are boosting interest in this token, enhancing network engagement. In the currency markets, trends vary. EUR/USD is stabilizing below 1.1600, waiting for important US financial updates. GBP/USD holds steady near 1.3150, benefiting from better risk sentiment, though weak UK data impacts other currency pairs. Turkey’s current account surplus for September was a pleasant surprise, beating expectations. However, we should remain cautious due to ongoing economic challenges. With inflation above 40% in October 2025, the Lira is sensitive to changes in global risk sentiment.

US Political and Economic Impact

Attention is on the US as we await a House vote on a funding bill to prevent a government shutdown. This political uncertainty coincides with the latest CPI data for October, which came in at a stubborn 3.5%. This complicates the Federal Reserve’s decisions. Traders in the dollar should keep an eye on Fed comments, as hints about future policies can lead to significant market shifts. The British Pound is struggling, with expectations that the Bank of England will take a more cautious approach. Recent labor market data shows UK unemployment has climbed to 4.9%, nearing highs not seen since 2021. This weakness may make selling GBP/USD a practical strategy, especially since the pair stays within the 1.3065/1.3230 range. The USD/JPY has climbed steadily to the 155 level, mainly due to the widening interest rate gap between the US and Japan. The Bank of Japan remains committed to its loose monetary policy, even after years of Yen weakness. Traders should be wary of possible intervention from Japanese authorities but should also recognize the strong upward trend. Gold’s position just below its three-week high around $4,100 highlights its sensitivity to risk sentiment. Resolving the US government funding issue could increase risk appetite and create headwinds for this safe-haven asset. Derivative traders should consider strategies that profit from either a breakout above recent highs during renewed uncertainty or a drop if the political landscape stabilizes. Create your live VT Markets account and start trading now.

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