USD Strengthens: EUR/USD and USD/JPY React to Political Uncertainty

The US dollar posted significant gains during the week ending October 10, with EUR/USD declining 1.2% to 1.0680 and USD/JPY surging 1.8% to 152.40. Political instability emerged as the primary catalyst, with France facing governmental challenges that pressured the euro, while Japan's political uncertainty weakened the yen substantially. The dollar index climbed to 99.85, approaching the critical 99-101 resistance zone that traders are closely monitoring. Risk-off sentiment dominated markets as investors sought safe-haven assets, though the traditional refuge status of the yen was compromised by domestic political concerns. Technical indicators suggest the dollar's momentum remains strong, with the DXY testing multi-month highs. For EUR/USD, immediate support lies at 1.0650, while USD/JPY faces resistance at 153.00. Traders should watch for potential intervention from the Bank of Japan if USD/JPY continues its ascent, while European political developments could further pressure the euro.