Market Sector Scanner: Markets Weaken as U.S. Shutdown Drags On; Yen Intervention Risk in Focus
The record U.S. government shutdown weighed on sentiment and delayed key data, driving stocks lower. The yen faced growing intervention risk, while gold rebounded above $4,000 as traders shifted to a cautious, range-trading approach ahead of key global events.
It was a quiet week as the U.S. government shutdown became the longest on record, weighing on sentiment and delaying key economic data. U.S. equities declined amid concerns over high valuations, while job cuts surged to a 20-year high and consumer confidence fell to its lowest level since 2022. The Bank of England left interest rates unchanged, though nearly half of policymakers supported a cut, and minutes from the Bank of Japan’s September meeting showed two members favored raising rates to 0.75%, signaling a gradual shift toward tighter policy.
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Key Events Calendar for November 10 – 14
Market Sector Scanner
Forex Market
USD/JPY
Last Week Recap
USD/JPY traded higher early last week but closed slightly lower after the Japanese government expressed concern about the weak yen, increasing the likelihood of intervention by the Bank of Japan.
Technical Picture
Although the upper Bollinger Band has acted as resistance recently, the market remains in a mild uptrend, with the 10-day moving average still pointing higher. The pair also continues to trade above previous resistance—now support—around 153.00, which is helping to stabilize the market.
Outlook This Week
Upside potential looks limited due to the risk of Bank of Japan intervention, but with the U.S. dollar still showing strength, range trading appears to be the best approach this week. Traders may look to sell near resistance and buy near support within the established range.
GBP/JPY
Last Week Recap
GBP/JPY briefly fell below 200 last week as concerns about potential U.K. tax increases weighed on sentiment. However, the pair rebounded after the Bank of England kept interest rates unchanged, with markets now expecting a possible rate cut in December as U.K. inflation continues to ease.
Technical Picture
Buying interest emerged near the lower Bollinger Band around the 200 level, helping the market recover. However, with the 10-day moving average now pointing lower, further gains may be limited in the short term.
Outlook This Week
Although GBP/JPY remains largely range-bound, momentum is beginning to tilt lower. Traders may find better opportunities by looking for selling setups during the week, especially near resistance levels.
EUR/USD
Last Week Recap
EUR/USD tested lower last week as the pair continued to follow the recent downtrend driven by expectations that the U.S. may delay further interest rate cuts. However, weaker-than-expected U.S. jobs and consumer confidence data encouraged buyers to step in toward the end of the week.
Technical Picture
Support at the lower Bollinger Band held late in the week, allowing EUR/USD to rebound toward the 10-day moving average. Despite this recovery, the moving average remains pointed lower, suggesting that short-term weakness could continue.
Outlook This Week
While last week’s rebound hinted that the downtrend might be losing momentum, resistance remains near the early October lows around 1.1550. Traders should look to sell if the market moves back below the 10-day moving average, anticipating another potential move lower.
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Equities
U.S. Stock
Last Week Recap
The Nasdaq spent most of last week under pressure as concerns grew over high valuations in AI-related companies and signs that the U.S. economy is slowing. The index tested lower throughout the week, reflecting cautious sentiment among investors.
Technical Picture
The lower Bollinger Band is now approaching current price levels, which could offer short-term support. However, the recent uptrend appears to have paused, with the 10-day moving average flattening and signaling sideways market movement for now.
Outlook
Although talk of a potential bubble is increasing, it remains difficult to predict when a larger correction might occur. For the moment, selling into strength and following the recent weakening trend appears to be the most effective strategy.
Commodities
Gold
Last Week Recap
Gold extended its recent decline early last week as profit-taking continued, but weakness in U.S. equities and worse-than-expected U.S. economic data encouraged buyers to return later in the week. This helped prices recover and close back above the key $4,000 level.
Technical Picture
The Bollinger Bands remain wide and distant from current price levels, reflecting reduced volatility. However, the weekly close above the 10-day moving average is a positive sign that could indicate further upside potential in the near term.
Outlook This Week
Concerns about the U.S. financial system continue to support safe-haven demand for gold. As long as the market stays above the 10-day moving average, traders can look for buying opportunities targeting $4,050 or higher in the short term.
The delay of this week’s U.S. CPI, PPI, and retail sales data due to the government shutdown has shifted traders’ focus to overall market trends. Investors are watching to see if stock selling will continue or if gold can recover after recent losses. The Japanese yen is also drawing attention, as further weakness could lead to possible intervention by the Bank of Japan.
