Daily Market Update

Buck rises to maintain multi-day streak

October 21, 2025

The U.S. Dollar is back to playing the role of safe-haven asset as a halt of risk-appetite is helping it resurge all across the board.

Overview

A global stock rally hit the brakes as investors are growing concerned with the potential for worrisome inflationary numbers.

Per reports, the Bureau of Labor Statistics plans on delivering September’s Consumer Price Index figures on Friday. This release will help the Fed in making its monetary policy decision, which will be accompanied by a press conference on October 29th. It is possible that indications that inflation is back to a worrisome pace, it may convince Fed officials to delay in reducing interest rates by 50 basis points for what is left of the year.

Meanwhile, the Buck is enjoying a three-day streak of appreciation and equities are down after the S&P 500 Index registered the biggest two-day boost since June. 85.0% of companies reporting earnings have beaten their expectations. We shall see what other items may affect FX flows, but for now both stocks and gold are coming down from their recent pedestals.

 

What to Watch This Week…

The complete Economic Calendar can be found here.

 

EUR ⇓

The shared currency is down slightly but has continued to tumble throughout the past few days after catching a bit of relief last week. No major data has made a dent to the Euro, but there are concerns over how France will operate and how major economies will be able to handle the big bill associated with aiding Ukraine. There was a mix when it came to results for big European firm earnings with some digital platforms crushing their earnings, but other firms in science such as Eurofins Scientific SE crashed by 9.0% after a very disappointing Q3. On Friday, we will get a chance to look at Purchasing Managers Index to see if there are signs of economic activity being steady or on the rise.

 

JPY ⇓

The Japanese Yen is the biggest loser thus far this morning following the official vote making Sanae Takaichi the first woman to become Prime Minister in Japan’s history. With her victory, the expectations are of a government looking to refocus on spending policies from the past, encouraged and implemented by the late PM Shinzo Abe, who was assassinated in July 2022. Turbulence in recent years and inconsistency associated with the Pacific Rim nation have increased the volatility of the third most reserved foreign currency. It has also inspired a bond trade referred to as “Widow-Maker” which involves borrowing and selling government bonds in expectation of declining prices. Japanese bonds have gone down by over 4.0% in 2025 making them the worst performing government debt instrument.

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