EUR/JPY Hits Record High, UK GDP Misses Expectations

The yen fell to 179.5 per euro early Thursday and stayed near 155.0 per dollar after Japan’s prime minister reiterated her preference for slow rate increases. Data released this morning showed the UK economy grew less than expected. Meanwhile The Dow Jones hit a new record high and gold continued its rise over $4200 per ounce following the end of the US government shutdown.

Equities

The FTSE 100 closed 0.1% higher on Wednesday, marking its third straight record finish and moving within reach of the 10,000 level.

Utilities led the advance after SSE closed up 16.8% on Wednesday, its strongest move in years, following the announcement of a £33 billion investment plan to upgrade regulated networks and expand its renewable generation projects. Miners also supported the index, with the sector up 1.3% as copper prices strengthened. Among the larger UK names, BP closed 1.7% lower and Shell slipped 0.7% as oil prices eased during the session.

In the mid-cap space, the FTSE 250 fell 0.7%, with 3i Group down 3.3% and Experian sliding 4.9% after forecasting full-year revenue growth at the top end of its guidance but still prompting a weak share reaction. Homebuilders were under pressure ahead of the budget, with Taylor Wimpey down almost 4% on Wednesday after signalling a softer autumn selling period. Elsewhere, Avon Technologies climbed 6.3% to a five-year high following an upbeat full-year outlook.

Across the Atlantic, the Dow Jones Industrial Average rose 0.68% on Tuesday to a record close, helped by gains of about 3.5% each in Goldman Sachs and UnitedHealth. The S&P 500 edged up 0.06% the same day to 6,850.92, while the Nasdaq fell 0.26% to 23,406.46 as traders moved out of several large tech names.

Amazon and Tesla both slipped roughly 2% on Tuesday, while Palantir fell 3.6% and Oracle dropped 3.9%. Nvidia stayed in focus after SoftBank’s $5.8 billion sale of its stake on Tuesday raised questions about whether enthusiasm around artificial intelligence may have peaked ahead of Nvidia’s earnings next week. AMD bucked the trend, jumping 9% on Tuesday after setting a $100 billion data-centre revenue target at its latest presentation.

Forex & Commodities

The yen weakened sharply early on Thursday, slipping to 179.5 per euro. It also eased to 155.0 per dollar, just above Wednesday’s nine-month low of 155.1, after Japan’s new prime minister said she preferred a slower path for rate increases and called for close coordination with the Bank of Japan. The finance minister issued another warning about rapid moves in the currency, although traders now place higher odds on a rate rise by January.

The British pound fell vs the euro but held its ground vs the US dollar as preliminary ONS data showed UK GDP grew just 0.1% in the third quarter, missing forecasts for 0.2% and slowing from 0.3% in the previous quarter. The monthly figures showed a 0.1% contraction in September after flat growth in August, marking one of the final key releases before the Autumn Budget.

The euro traded slightly lower at $1.158, while the Australian dollar moved higher after October jobs data showed a stronger labour market. The broader focus remains on the return of US economic data following the end of the government shutdown.

Spot gold extended its rise on Thursday morning, reaching $4207 per ounce, the highest level since late October, and marking a fifth straight session of gains. Prices have been supported by expectations that official US data releases will restart and help guide the Federal Reserve ahead of its December meeting. Central banks continue to accumulate bullion, and year-to-date gains remain substantial. Silver traded at $54.02 per ounce, moving closer to last month’s record.

Oil prices fell on Wednesday evening after OPEC said supply should match demand in 2026. Brent crude settled at $62.71 per barrel and West Texas Intermediate at $58.49. The shift in OPEC’s outlook follows wider OPEC+ production increases this year. The IEA separately projected that oil and gas demand may continue rising into the 2050s.