US Tech Rally Lifts Global Equities; Gold Rises on Dovish Fed Bets;

The EUR/USD pair held steady near 1.1560 on Monday, little changed as the US Dollar pared earlier losses following reports that the White House supports a bipartisan deal to end the prolonged US government shutdown.

According to Bloomberg, the White House has backed a cross-party agreement that could reopen the government in the coming days. The US Senate has already approved the legislation, but the House of Representatives must return to Washington for a vote.

The shutdown, now in its 41st day, continues to weigh on market sentiment in the absence of major US data releases. As a result, investors have turned their attention to commentary from Federal Reserve officials for clues on future policy direction.

Across the Atlantic, European Central Bank policymakers—including Vice President Luis de Guindos, François Villeroy de Galhau, and Joachim Nagel—maintained a cautious tone. De Guindos said current interest rate levels are “appropriate,” emphasizing that inflation is gradually approaching the ECB’s 2% target, though officials warned against complacency amid lingering price pressures.

The divergence in monetary policy between the ECB and the Fed continues to shape EUR/USD dynamics, with analysts suggesting the pair could see further upside if US rate cut expectations deepen.

Looking ahead, investors will focus on Tuesday’s German and Eurozone ZEW Economic Sentiment Index readings for fresh insight into the region’s growth prospects and potential direction for the Euro.

Gold prices surged nearly 3% on Monday, hitting their highest level in more than two weeks as soft U.S. economic data bolstered expectations that the Federal Reserve could begin cutting interest rates soon, boosting demand for the non-yielding metal.

Recent economic indicators showed the U.S. economy lost jobs in October, particularly in the government and retail sectors. Meanwhile, consumer sentiment slumped in early November as households grew increasingly concerned about the broader economic outlook.

According to the CME FedWatch Tool, markets are now pricing in a 64% probability of a December rate cut, with odds climbing to 77% by January, reflecting mounting expectations for monetary easing.

Gold is traditionally viewed as a hedge against inflation and uncertainty, tends to perform well when interest rates fall, as lower yields reduce the opportunity cost of holding non-interest-bearing assets.

In a related development, the U.S. Senate moved forward on Sunday with a measure to reopen the federal government, potentially ending a 40-day shutdown.

Oil prices retreated in Asian trading on Tuesday, reversing gains from the previous session as concerns over a potential supply glut and a stronger U.S. dollar pressured sentiment.

The pullback followed modest gains on Monday, when progress toward ending the U.S. government shutdown and reports of renewed Ukrainian drone attacks on Russian refineries briefly supported prices.

However, traders remained cautious amid mounting concerns that global oil markets could face oversupply in 2025, driven largely by production increases from the Organization of the Petroleum Exporting Countries (OPEC) and its allies.

Despite recovering from recent lows, both Brent and WTI remain under pressure for the year, as worries about weakening global demand compound oversupply risks.

Meanwhile, geopolitical risks remain elevated. Over the weekend, Ukraine launched drone strikes targeting Russian energy infrastructure, prompting retaliatory attacks by Moscow.

Now entering its third year, the Russia-Ukraine conflict shows few signs of de-escalation, despite U.S. diplomatic efforts to broker a ceasefire.

The renewed hostilities and U.S. sanctions targeting Russia’s oil industry have provided intermittent support for crude prices by disrupting parts of Russia’s production and export capacity.

U.S. stocks surged Monday, led by technology shares, after the Senate advanced legislation aimed at ending the nation’s longest-ever government shutdown, boosting investor confidence and helping Wall Street rebound from last week’s selloff.

Investor optimism grew after the Senate voted 60-40 in a procedural move toward passing a spending bill that would fund the government through January 30, 2026.

Investors have grown increasingly concerned about the shutdown’s drag on the economy. U.S. consumer sentiment fell to its lowest level in nearly three and a half years in early November.

Monday’s rally marked a rebound for the technology sector, which had suffered heavy losses the previous week.

The week’s earnings calendar lightens considerably, with only two Dow components—Cisco Systems and Walt Disney scheduled to report results.

In corporate news, Pfizer (NYSE: PFE) finalized a $10 billion acquisition of obesity drug developer Metsera (NASDAQ: MTSR), concluding a heated bidding contest with Novo Nordisk (NYSE: NVO).