- October 23, 2025
- Posted by: EWGFX
- Category: Technical analysis
It’s a mixed start for the US dollar as North American trading gets underway, with key levels now in focus. The pound is the weakest among the majors following softer UK CPI data, while the yen is modestly higher against the greenback.
The USD is trading mixed across the main pairs — stronger versus the euro and pound, but weaker against the yen. GBP/USD stands out as the primary mover after UK inflation figures came in below expectations.
In the video above, I review the key technical levels shaping these major pairs, highlighting bias, risk parameters, and trade targets. I also explain why these levels are significant, helping traders apply similar analytical techniques.
UK inflation data disappointed, remaining flat month-over-month (vs. +0.2% expected) and rising 3.8% year-over-year (vs. 4.0%), with core inflation also coming in softer.
In Japan, newly appointed Prime Minister Sanae Takaichi announced that this year’s economic stimulus will exceed last year’s ¥13.9 trillion package. The plan centers on three priorities: combating inflation, investing in growth industries, and strengthening national security. The Nikkei index dipped slightly after hitting a record high yesterday.
On the geopolitical front, President Trump stated he will not meet with Democratic leaders until the government reopens. His planned meeting with President Putin has been postponed, though he maintains optimism for a potential Russia-Ukraine cease-fire. Russian officials say preparations for the meeting are ongoing, though concerns persist that Putin could be manipulating the process — something Trump aims to avoid after the failed Alaska summit.
US-China relations remain tense. Trump signaled that his meeting with Xi Jinping may not happen soon amid ongoing trade frictions, confirming that the 155% tariffs on Chinese imports will take effect on November 1. He noted that such tariffs are unsustainable for China — but acknowledged that US importers and consumers will also feel the impact.
Major US stock indices are slightly lower in premarket trading ahead of Tesla’s earnings release after the close:
- Dow Jones: -28.74 points
- S&P 500: -2.85 points
- NASDAQ: -61 points
In the bond market, yields are lower, and the curve continues to flatten for the second straight day. The US Treasury will auction 20-year bonds at 1 PM ET:
- 2-year: 3.446% (-0.8 bps)
- 5-year: 3.548% (-1.2 bps)
- 10-year: 3.943% (-2.0 bps)
- 30-year: 4.523% (-2.5 bps)
Elsewhere in the markets:
- Gold extends its sharp decline, down $83 (-2.02%) at $4,040 after falling more than 5% yesterday.
- Silver is lower by $0.72 (-1.44%) at $47.96.
- Crude oil rises $1.16 to $58.41.
- Bitcoin slips $853 to $107,519.