Quick overview
- Investors are focused on upcoming earnings reports from Pepsi, Levi’s, and Applied Digital Corporation amid the ongoing U.S. government shutdown.
- Gold has surpassed the $4,000 mark, indicating strong demand for safe-haven assets, although some analysts caution that the rally may be losing momentum.
- The U.S. dollar has strengthened against major currencies, particularly after the Reserve Bank of New Zealand’s unexpected rate cut, which pressured the Kiwi lower.
- Despite the political stalemate from the government shutdown, U.S. equities have reached new record highs, driven by growth and tech stocks.
Live BTC/USD Chart
BTC/USD
Investors attention will be on a few high-profile corporate earnings releases such as Pepsi, APLD and Levi’s as US Govt shutdown continues.
Gold Extends Rally Above $4,000
Spot gold pushed further past the $4,000 milestone on Wednesday, reaching an intraday high of $4,059.31. The sustained strength highlights that buyers remain firmly in control, although some analysts warn the rally may be nearing exhaustion.
Silver Approaches Historic Highs
Spot silver also moved higher, climbing steadily but stopping just short of the significant benchmark set in April 2011, when prices touched $40.83. The metal’s gains underscore the broader demand for precious metals as investors seek havens amid ongoing uncertainty.
Dollar Gains as Kiwi Slides After RBNZ Cut
The U.S. dollar strengthened against most major currencies, bolstered by central bank moves abroad. The New Zealand dollar (NZD/USD) fell to its lowest level since April 11 after the Reserve Bank of New Zealand delivered a larger-than-expected 50-basis-point rate cut. Markets had been split between anticipating a 25 or 50 basis-point move, and the more aggressive cut pressured the Kiwi sharply lower.
Political Stalemate Fails to Shake Stocks
Despite the U.S. government shutdown entering its eighth day with no resolution in sight, equities largely brushed off the political turmoil. Both the S&P 500 and the Nasdaq Composite closed at new record highs, supported by strength in growth and tech stocks, while the Dow Jones Industrial Average ended flat.
FOMC Minutes Point to More Policy Easing
Minutes from the latest Federal Open Market Committee (FOMC) meeting showed that most policymakers expect further monetary easing over the remainder of the year. Nearly all members backed the 25-basis-point rate cut in September, though a handful preferred holding rates steady, and one member argued for a more aggressive 50-basis-point cut.
Key Forex Events to Watch Today: Corporate Earnings on the Radar
Today’s earnings releases may sway investor sentiment, particularly if results deviate from forecasts, potentially causing ripple effects across stock futures and forex markets. Traders should stay alert for volatility spikes, especially around the release windows for LEVI and APLD after hours.
PepsiCo (PEP) – Q3 2025 Earnings Report
- Time: Before Market Open (BMO)
- Consensus EPS: $2.26
- As a consumer staples giant, PepsiCo’s performance often reflects broader consumer demand trends and can influence equity sentiment.
Levi Strauss & Co. (LEVI) – Q3 2025 Earnings Report
- Time: After Market Close (AMC)
- Consensus EPS: $0.31
- Focus remains on margins and international sales growth as Levi’s navigates retail sector challenges and shifting consumer preferences.
Applied Digital Corporation (APLD) – Q1 2026 Earnings Report
- Time: After Market Close (AMC)
- Consensus EPS: -0.15
- Investors will watch for updates on cost management and progress in scaling its data-center operations amid high competition in the digital infrastructure space.
Last week, markets were quite volatile again, with gold soaring above $3,900. EUR/USD continued the pullback move toward 1.16 while main indices closed higher again. The moves weren’t too big though, and we opened 35 trading signals in total, finishing the week with 23 winning signals and 12 losing ones.
Gold Finally Makes It Above $4,000
Although demand for safe haven assets is still high, gold fell precipitously from record highs following the Fed’s most recent rate decrease as profit-taking was prompted by Powell’s cautious tone. Earlier this week, gold jumped beyond $3,700 and reached $3,707.42 following the Federal Reserve’s announcement of a 25 basis point rate decrease to 4.25%. But the impetus soon waned, and prices dropped back to $3,627, a $80 decline from the new all-time high. As traders locked in profits after the rally driven by dovish predictions, there was a sudden fall but buyers returned on Friday pushing the price $60 higher. Yesterday buyers continued to push and XAU reached another record high at $4,059 on Wednesday.
USD/JPY Breaks Above the Range After the New BOJ Governor
Foreign exchange markets saw sharp swings. Early in the week, U.S. yield differentials and Japanese capital outflows pushed the dollar above ¥150, but disappointing U.S. jobs data triggered profit-taking, causing the USD/JPY to slide by four yen from its peak. However, the new BOJ governor the JPY has weakened and USD/JPY soared to 152.
USD/JPY – Weekly Chart
Cryptocurrency Update
Bitcoin Stays Above $120K Lows
Cryptocurrencies remained highly active over the summer. Bitcoin (BTC) climbed to fresh highs of $123,000 and $124,000 in July and August, supported by institutional inflows and technical strength. However, remarks from Treasury Secretary Scott Bessent ruling out U.S. increases to BTC reserves triggered a steep pullback, sending the coin down to $113,000 before recovering above $116,000 last week, however sellers returned and sent BTC below $110,000, breaking the 20 weekly SMA (gray) as well but we have seen a strong rebound this week, sending the price above $126K.
BTC/USD – Weekly chart
Ethereum Returns Below $4,500 Again
Ethereum (ETH) has been similarly strong, surging toward $4,800, its highest since 2021 and near its all-time peak of $4,860. Despite a dip last week, ETH found support at the 20-day SMA, with retail enthusiasm and renewed institutional participation driving fresh upside momentum. However buying resumed and on Sunday ETH/USD printed another record at $4,941 but we saw a retreat which sent ETH below $4,000. Yet buyers are back and now ETH is heading for $4,500.
ETH/USD – Weekly Chart
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank’s local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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