Global Markets Mixed on Tech Valuations and US Government Shutdown

Global forex markets are experiencing mixed sentiment as traders navigate multiple headwinds affecting risk appetite. The prolonged US government shutdown, now the longest in history, is weighing on USD pairs, with EUR/USD holding above 1.0900 and USD/JPY retreating from recent highs. Corporate earnings season has delivered mixed results, particularly in the technology sector where valuation concerns are mounting following disappointing guidance from major firms. Risk-sensitive currencies like AUD and NZD are underperforming as investors seek safe-haven assets. The uncertainty has boosted demand for JPY and CHF, with USD/CHF dropping 0.2% to 0.9150. Gold has benefited from the risk-off sentiment, climbing to $2,050/oz. Market participants are closely monitoring the government shutdown's economic impact, with estimates suggesting a 0.1% weekly GDP drag. Until resolution emerges, expect continued volatility across major pairs with defensive positioning likely to persist.