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Market View: Tuesday, October 21, 2025

By Adam Lienhard

The US dollar remains firm; gold formed a Double Top; the Japanese yen weakened due to the new Prime Minister’s leadership. The US dollar attempts to recover despite the drag of the prolonged government shutdown. Gold repeatedly reached its previously achieved $4,379.60 level and consolidated. Risk sentiment has been positive in Asia for the second consecutive day as traders’ tensions eased. Today’s focus - The European Central Bank (ECB) President C.Lagarde will deliver a speech at 15:00 MT time. - Canadian Core CPI prints are due to release at 15:30 MT time. FX snapshot - XAUUSD. Gold kept on shining last night, forming the Double Top pattern with a slight retreat afterwards. - EURUSD. The pair is at the critical technical zone, watching 1.16000 for there’s a risk of a deeper dive if broken. - USDJPY. JPY is weak, supporting USDJPY upside. The pair may push higher as the Bank of Japan’s rhetoric becomes more dovish.

Market tone The market might react towards the current USD strength and JPY weakness dynamic with higher-than-expected volatility.

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Publication date:

2025-10-21 10:35:58 (GMT)

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