The dollar index climbed on Monday as shifting political landscapes in Japan and France pressured the euro and yen, while rising U.S. tech stocks and metals prices helped lift the Australian dollar. The U.S. dollar's gains were tempered by worries that an extended U.S. government shutdown, now in its sixth day, could weigh on economic growth. The White House budget office continues coordinating federal layoffs due to the government shutdown, while the Trump administration is pushing forward a Gaza peace plan, spokeswoman Karoline Leavitt said. President Donald said in a on social media that all medium and heavy duty trucks imported into the United States will face a 25% tariff rate starting Nov. 1. Trump is expected to meet the Prime Minister of Canada Mark Carney and the President of Finland Alexander Stubb this week. EUR/USD stabilized after an earlier drop due to political turmoil in France. President Emmanuel Macron asked his outgoing prime minister, who had resigned earlier in the day, to lead urgent talks with other parties to resolve the crisis, while ratings agencies issued warnings about France's sovereign credit score. Fresh records in U.S. tech shares and gold helped lift the euro back above its 55-DMA at 1.1683, though deteriorating risk reversals suggest downside risks remain. Nearby resistance is seen at its 21-day moving average of 1.1746. Politics may continue to be an issue for the euro with European Commission President Ursula von der Leyen facing renewed no-confidence bids this week. Key European Central Bank policymakers said that current rates are appropriate but may ease borrowing costs if the risk of inflation going too low increases. GBP/USD edged up as the pound garnered support from turmoil elsewhere. Cable eyes resistance near 1.35 including its 21-day and 100-day moving averages. EUR/GBP fell toward its 55-day moving average at 0.8674 while GBP/JPY gapped higher, hitting its highest level in over a year. Separately, Bank of England Governor Andrew Bailey said British authorities should take a "pragmatic and open-minded approach" to AI. USD/JPY trimmed its gain after an advisor to Sanae Takaichi, in a Bloomberg article, did not rule out a December Bank of Japan rate hike and said that depreciation of the yen past 150 to the dollar may be "a little too much." Bullish yen bets against the dollar have been trimmed amid a flurry of speculative yen sales after the LDP election results, shifting one-week risk reversals in favor of dollar call options. EUR/JPY held near a multi-decade high while AUD/JPY rose the most since early April. Treasury yields were up 3-5 basis points. The 2s-10s curve was up about 1 basis point to +56.5bp, steepest level in a month . The S&P 500 rose 0.45% fueled by tech shares. WTI oil gained 1.33% after OPEC+ hiked output less than expected. Gold rose 1.96% and is approaching $4000 per oz while copper fell 1.53%. Heading toward the close: EUR/USD -0.26%, USD/JPY +1.93%, GBP/USD +0.11%, AUD/USD +0.23%, DXY +0.39%, EUR/JPY +1.66%, GBP/JPY +1.96%, AUD/JPY +2.24%. For more click on (Editing by Burton Frierson Reporting by Robert Fullem) ((mailto:robert.fullem@thomsonreuters.com;))
