**Forex Market Weekly Analysis: Major Currency Pairs to Watch From October 19 to 23, 2025**
*Adapted and expanded from original analysis by DailyForex.com*
As the week of October 19 to 23, 2025, approaches, global Forex markets continue to experience heightened volatility, primarily shaped by central bank policies, inflation metrics, geopolitical developments, and risk sentiment. Several major currency pairs are showing signals that traders should closely monitor. This analysis provides an overview of the key pairs in focus, their technical trends, and fundamental drivers shaping their movement this week.
Jackson Hole’s influence earlier in the year continues to echo into the current environment. Traders are aligning their strategies with expectations of Federal Reserve policy adjustments, ECB deliberations, and macroeconomic indicators from Asia.
Let’s delve into the detailed technical and fundamental outlooks for major currency pairs this week.
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## EUR/USD
The EUR/USD remains a heavily traded focus pair, hovering below key resistance amid mixed economic signals from both the United States and the Eurozone.
**Technical Overview:**
– The pair continues to consolidate within a rising channel on the 4-hour chart.
– Immediate resistance is seen around the 1.0900 psychological mark.
– Support lies near 1.0750, with a stronger base at the 200-day Simple Moving Average (SMA) around 1.0680.
– RSI hovers around 50, suggesting a neutral bias but room for direction once a breakout occurs.
– The 50-hour Moving Average has crossed below the 200-hour MA, indicating a possible short-term bearish reversal pattern (Death Cross).
**Fundamental Factors:**
– Eurozone inflation remains sticky. Latest data showed HICP inflation at 4.2 percent YoY for September, only slightly down from the previous month.
– The ECB is cautious with its dovish bias amid fears of a slowing economy. Any signs of GDP contraction could weaken the Euro.
– In the US, the Federal Reserve remains broadly hawkish, backed by resilient labor data and higher-than-expected CPI numbers (September CPI YoY at 3.8 percent vs. forecasted 3.6 percent).
– Rate differentials continue to favor the dollar in the near term.
**Outlook:**
A break above 1.0900 could open the path toward 1.1000 and 1.1050. However, failure to sustain above 1.0750 may drag the pair back to 1.0680 or lower.
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## GBP/USD
The British pound is caught between mixed UK economic data and broad dollar strength. Volatility is expected as traders assess upcoming inflation and employment figures.
**Technical Overview:**
– The pair is trading in a sideways channel between 1.2100 and 1.2300.
– A break above 1.2300 would confirm bullish momentum; however, technical signals lean bearish in the short term.
– RSI is pointing downward near 42, indicating momentum favors the downside.
– The 100-day SMA has turned flat, suggesting consolidation.
**Fundamental Factors:**
– The UK economy contracted 0.2 percent in August, and Bank of England officials have indicated a pause in tightening given the fragile growth outlook.
– Inflation remains high, with CPI at 6.4 percent YoY in September, stoking stagflation concerns.
– BOE is under pressure to keep rates steady while inflation stays stubbornly high.
– US dollar strength due to Fed policy outlook and global safe-haven demand is weighing on the pound.
**Outlook:**
A drop below 1.2100 may lead to extended losses toward 1.2000 and 1.1850. On the flip side, stronger UK data could propel the pound past 1.2300 resistance.
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## USD/JPY
Dollar-Yen is nearing historic highs as investor sentiment favors the US dollar, while the Bank of Japan remains dovish
Read more on USD/CAD trading.