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AI-Enhanced Forex News Archive

Professional trading insights from Friday, October 31, 2025

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News Statistics for Friday, October 31, 2025

10
Total Articles
4
Bullish
3
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3
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Archive date: Friday, October 31, 2025

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Forexlive

USD/CAD hits weekly highs after Fed signals cautious rate path

USD/CAD has surged to fresh weekly highs around 1.3920, marking a complete reversal from earlier weakness that dominated through Wednesday. The pair gained approximately 0.8% (110 pips) following the Federal Reserve's rate decision, where Chair Powell emphasized the central bank is not committed to a predetermined easing path for December. This hawkish tilt caught markets off-guard, triggering broad USD strength. The Canadian dollar faced additional pressure from declining oil prices and domestic economic concerns. Technical indicators show USD/CAD breaking above the 1.3900 psychological resistance, with momentum indicators turning bullish. The next key resistance lies at 1.3950 (October high), while support has formed at 1.3850. Traders are now positioning for potential further USD strength, particularly if upcoming US economic data supports the Fed's cautious stance on future rate cuts.
USDCAD
Sentiment: Very Positive
Source: Finnhub
investing.com

USD/JPY Tests Intervention Zone as Fed Hawkishness Drives Yen Weakness

USD/JPY has surged to critical levels near 155.00, gaining 0.8% (120 pips) in early Asian trading as the Federal Reserve's hawkish stance continues to pressure the yen. The pair approaches the psychological intervention threshold where Japanese authorities previously acted in April and September. Fed Chair Powell's recent comments suggesting fewer rate cuts in 2025 have bolstered dollar strength, while the Bank of Japan maintains its ultra-loose monetary policy despite inflation concerns. The policy divergence between the two central banks has widened to its largest gap since 2022. Technical indicators show USD/JPY testing resistance at 155.20, with momentum oscillators in overbought territory. Japanese Finance Minister warnings about excessive yen weakness have increased, raising intervention risks. Traders should monitor verbal interventions from Japanese officials and any sudden volatility spikes that could signal official action in the currency markets.
USDJPY EURUSD USDTWD
Sentiment: Very Positive
Source: Marketaux
investing.com

Dollar Index Extends Rally on Powell's Hawkish Policy Guidance

The US Dollar has strengthened across all major pairs, with DXY climbing 0.5% to 106.80 following Fed Chair Powell's hawkish policy remarks at the latest FOMC meeting. EUR/USD dropped 0.4% (45 pips) to 1.0520, while GBP/USD fell 0.6% (75 pips) to 1.2650 as traders price in a prolonged period of elevated US interest rates. Powell emphasized that inflation remains above target and the Fed will maintain restrictive policy until clear evidence of sustained disinflation emerges. USD/JPY advanced to 154.80, approaching intervention levels, while EUR/GBP held steady at 0.8320. Market positioning data shows speculative dollar longs at their highest since March 2023. Technical analysis indicates EUR/USD testing support at 1.0500, with GBP/USD eyeing the 1.2600 psychological level. The dollar's broad strength suggests continued momentum ahead of Friday's US employment data.
EURUSD GBPUSD USDJPY EURGBP
Sentiment: Very Positive
Source: Marketaux
investing.com

EUR/USD Pressured by Weak China PMI and Eurozone Inflation Concerns

EUR/USD declined 0.3% (30 pips) to 1.0540 as disappointing Chinese economic data and anticipation of Eurozone CPI weighed on risk sentiment. China's Manufacturing PMI fell to 49.2 in October, missing expectations of 49.5 and signaling continued contraction in the world's second-largest economy. The weak data dampened demand for risk-sensitive currencies including the euro. Markets await Eurozone October CPI data, expected to show inflation rising to 2.1% from 1.7%, potentially complicating the ECB's dovish stance. US equity futures point lower, with S&P 500 futures down 0.4% and Nasdaq futures falling 0.5%, reflecting broader risk-off sentiment. Technical analysis shows EUR/USD breaking below the 50-day moving average at 1.0560, with next support at 1.0500. A disappointing Eurozone inflation print could accelerate euro weakness, while stronger data might provide temporary relief for the common currency.
EURUSD
Sentiment: Negative
Source: Marketaux
Forexlive

USD/JPY faces pressure as Japan unions target 6% wage hike for 2026

USD/JPY is trading under pressure near 152.80, down 0.2% in early Asian trading, as Japan's UA Zensen union group announced plans to demand a 6% wage increase in the 2026 spring wage negotiations (shunto). This development is crucial for the Bank of Japan's monetary policy outlook, as Governor Ueda emphasized the need to assess wage momentum before considering rate hikes. Markets have pushed back expectations for the first BoJ rate increase to March 2026 at the earliest, removing any 2025 hike probability. The substantial wage demand from UA Zensen, representing textile and retail sectors, could accelerate Japan's inflation normalization and support eventual yen strength. Technical indicators show immediate support at 152.50, with resistance at 153.20. Traders should monitor upcoming Japanese labor data and BoJ communications for potential shifts in monetary policy expectations that could trigger significant yen appreciation.
USDJPY
Sentiment: Negative
Source: Finnhub
investing.com

Natural Gas Surge Shifts FX Market Dynamics as Energy Concerns Mount

Natural gas prices spiked 8.2% overnight, triggering significant movements across forex pairs as traders reassess energy-related currency exposures. EUR/USD fell 0.2% (25 pips) to 1.0545 as Europe's energy vulnerability resurfaces ahead of winter demand. USD/JPY climbed to 154.60, gaining 0.3% as safe-haven flows favored the dollar over the yen. The energy shock has shifted retail sentiment, with positioning data showing increased bearish bets on EUR and bullish dollar positions. Gold retreated 0.5% to $2,735 as rising yields reduced the metal's appeal. Technical indicators suggest EUR/USD faces resistance at 1.0580, while support builds at 1.0520. The natural gas surge particularly impacts European currencies due to the continent's energy import dependence. Traders should monitor energy market developments and their potential spillover effects on currency valuations, especially for commodity-linked and energy-dependent economies.
EURUSD USDJPY
Sentiment: Neutral
Source: Marketaux
thestockmarketwatch.com

Global FX markets mixed as Fed outlook weighs on USD amid crypto weakness

Foreign exchange markets are displaying mixed signals in today's session, with the US dollar showing varied performance against major peers as traders digest Federal Reserve policy implications. While specific currency pair movements weren't detailed, market participants are repositioning based on evolving Fed rate expectations and their impact on dollar strength. The concurrent weakness in cryptocurrency markets suggests risk-off sentiment may be emerging, potentially benefiting traditional safe-haven currencies like the Japanese yen and Swiss franc. Central bank divergence continues to drive forex volatility, with the Fed's hawkish stance contrasting with more accommodative policies elsewhere. Technical analysis across major pairs indicates consolidation patterns, awaiting clearer directional catalysts. Traders should monitor upcoming Fed communications and global economic data releases for potential breakout opportunities. The interplay between traditional forex and digital assets remains a key theme influencing overall market sentiment.
EURUSD USDJPY GBPUSD USDCHF
Sentiment: Positive
Source: Marketaux
seekingalpha.com

GBP/USD Tests 5-Month Low at 1.31400 Amid UK Fiscal Concerns

GBP/USD has declined to a 5-month low of 1.31400, erasing recent gains despite maintaining a 5.40% year-to-date advance. The cable's weakness stems primarily from mounting UK fiscal worries rather than dollar strength, as investors grow increasingly concerned about Britain's budget deficit and spending plans. The psychological 1.31400 level represents a critical support zone that hasn't been breached since late May. Market participants are closely monitoring UK gilt yields, which have risen sharply, reflecting deteriorating confidence in the government's fiscal trajectory. Technical indicators suggest further downside pressure, with the next major support level at 1.31000. The pound's vulnerability has intensified ahead of the Bank of England's upcoming policy meeting, where policymakers face the challenge of balancing inflation concerns against fiscal stability. Traders should watch for any break below 1.31400, which could accelerate selling toward the 1.30500 region.
GBPUSD
Sentiment: Very Negative
Source: Marketaux

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