EUR/USD & GBP/USD Rise as Nasdaq Hits Records on Fed Rate Cut Hopes

EUR/USD advanced 0.25% to 1.1145 while GBP/USD gained 0.35% to 1.3420 as the Nasdaq 100 reached new record highs amid growing expectations for Federal Reserve rate cuts. Markets are pricing in a 65% probability of a 25-basis-point cut at the December FOMC meeting, despite looming US government shutdown risks that could disrupt economic data releases. The dollar index weakened 0.4% to 101.20 as risk appetite improved across global markets. European equities also benefited, with the FTSE 100 climbing 0.8% to 8,285. Technical indicators suggest EUR/USD faces resistance at 1.1180 (September high), with support at 1.1100. GBP/USD shows bullish momentum targeting 1.3450, though US political uncertainty could limit near-term gains. Traders should monitor Congressional negotiations as a government shutdown could delay key economic releases and increase market volatility.