Home Forex FX Update: US Dollar strengthens on trade tensions, AUD/USD declines 0.52%

FX Update: US Dollar strengthens on trade tensions, AUD/USD declines 0.52%

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# FX Update: US Dollar strengthens on trade tensions, AUD/USD declines 0.52%

## Forex and Global News (Last 8 Hours)
In the latest forex market developments, the US Dollar (USD) remains strong amid heightened risk aversion stemming from renewed US-China trade tensions. The Japanese Yen (JPY) has gained 0.2%, benefiting from its safe-haven status, while the British Pound (GBP) has weakened by 0.5% due to disappointing labor market data. The Euro (EUR) is down 0.1% against the USD, trading around 1.1550, as traders await comments from Federal Reserve Chair Jerome Powell, which could influence market sentiment further. The Canadian Dollar (CAD) is softer but has shown relative resilience compared to its G10 peers. Overall, the market sentiment reflects unease, with global bonds rallying as investors seek safety amid geopolitical concerns. The US Dollar Index (DXY) is currently at 99.20, reflecting a daily change of 0.0040%.

## Economic Calendar Events Today
All times are in US Eastern Time (New York).

Date Time Cur Imp Event Actual Forecast
2025-10-14 02:00 🇪🇺 High German CPI (MoM) (Sep) 0.2% 0.2%
2025-10-14 02:00 🇪🇺 Medium German CPI (YoY) (Sep) 2.4% 2.4%
2025-10-14 05:00 🇪🇺 Medium German ZEW Current Conditions (Oct) -80.0 -75.0
2025-10-14 05:00 🇪🇺 Medium German ZEW Economic Sentiment (Oct) 39.3 41.2
2025-10-14 05:00 🇪🇺 Medium ZEW Economic Sentiment (Oct) 22.7 30.2
2025-10-14 08:30 🇨🇦 Medium Building Permits (MoM) (Aug) -1.2% -0.7%
2025-10-14 11:15 🇨🇦 Medium BoC Senior Deputy Governor Rogers Speaks
2025-10-14 21:30 Medium CPI (MoM) (Sep) 0.2%
2025-10-14 21:30 Medium CPI (YoY) (Sep) -0.2%
2025-10-14 21:30 Medium PPI (YoY) (Sep) -2.3%

On October 14, 2025, several economic indicators were released that could influence G7 FX markets, particularly the euro (EUR) and Canadian dollar (CAD).

For the eurozone, German CPI figures met expectations, with a month-on-month increase of 0.2% and a year-on-year rate of 2.4%. However, the German ZEW Current Conditions index significantly underperformed, registering -80.0 against a forecast of -75.0, indicating deteriorating sentiment among analysts. Similarly, the ZEW Economic Sentiment index fell short of expectations at 39.3, compared to a forecast of 41.2. The overall weak sentiment data may exert downward pressure on the EUR as investor confidence wanes.

In Canada, building permits fell by 1.2% month-on-month, worse than the forecast of -0.7%, which may suggest a slowdown in construction activity. This could impact the CAD negatively, especially ahead of the Bank of Canada Senior Deputy Governor’s speech, which may provide further insights into monetary policy direction.

Overall, the market is likely to react to the disappointing sentiment indicators in Germany and the weak Canadian building permits data, with potential volatility expected in the EUR and CAD.

## G7 Currency Pairs Performance

Name Symbol Price Daily (%) 5D (%) 1W (%) 1M (%) 3M (%) 6M (%) YTD (%) 12M (%) MA50 MA100 MA200 RSI MACD
EUR/USD – Euro / U.S. Dollar EURUSD 1.1597 0.2247 -0.3006 -0.9674 -1.1738 -0.0895 1.7567 11.44 6.1473 1.1693 1.1640 1.1220 25.03 -0.0028
USD/JPY – U.S. Dollar / Japanese Yen USDJPY 151.83 -0.3309 -0.5567 0.9971 3.1286 2.0630 6.9768 -3.2899 1.6714 148.24 146.99 148.21 67.51 1.1788
GBP/USD – British Pound / U.S. Dollar GBPUSD 1.3297 -0.2625 -0.7791 -1.3934 -2.0596 -0.7193 0.4761 5.9598 1.9002 1.3474 1.3495 1.3169 33.28 -0.0042
USD/CHF – U.S. Dollar / Swiss Franc USDCHF 0.8021 -0.2611 0.0749 0.9045 0.7727 0.0849 -1.4316 -11.1975 -6.5478 0.8005 0.8038 0.8388 67.23 0.0009
AUD/USD – Australian Dollar / U.S. Dollar AUDUSD 0.6486 -0.5215 -1.4959 -1.9723 -2.7295 -0.5061 1.7731 4.2765 -3.6414 0.6554 0.6535 0.6421 32.68 -0.0010
USD/CAD – U.S. Dollar / Canadian Dollar USDCAD 1.4042 0.0427 0.6263 0.6884 1.5057 2.3738 1.3153 -2.1450 1.8924 1.3844 1.3769 1.3980 80.79 0.0053
NZD/USD – New Zealand Dollar / U.S. Dollar NZDUSD 0.5714 -0.2444 -1.2015 -2.1743 -4.4130 -4.0357 -3.7300 1.3172 -6.2001 0.5874 0.5941 0.5847 26.45 -0.0040
DXY – US Dollar Index DXY 99.20 0.0040 -0.3426 0.6279 1.6904 N/A N/A N/A N/A 98.06 98.06 98.06 64.67 0.3466

## Charts

## Technical Analysis
Analyzing the G7 currency pairs alongside the DXY, several key technical signals emerge.

**EUR/USD** is currently oversold with an RSI of 25.03, suggesting potential for a corrective bounce. The MACD remains bearish at -0.0028, indicating downward momentum, while both MA50 and MA100 are above the current price, reinforcing resistance levels.

**USD/JPY** is approaching overbought territory with an RSI of 67.51. The MACD at 1.1788 is bullish, suggesting sustained upward momentum, but caution may be warranted as it nears overbought conditions. The price is well above the MA50 and MA100, indicating a strong bullish trend.

**GBP/USD** shows an RSI of 33.28, indicating oversold conditions, but the MACD remains negative at -0.0042, suggesting continued bearish pressure. Resistance levels are established by the MA50 and MA100.

**USD/CHF** is similarly positioned with an RSI of 67.23 and a slightly bullish MACD at 0.0009, hinting at potential continuation of the upward trend.

**USD/CAD** stands out with an RSI of 80.79, indicating overbought conditions, and a bullish MACD. Traders may consider shorting opportunities here.

The **DXY**, with an RSI of 64.67 and a bullish MACD of 0.3466, suggests strength in the USD, but

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