Forex Today: Choppy action continues ahead of US housing data
Here is what you need to know on Thursday, October 23:
Markets stay relatively quiet early Thursday as investors refrain from taking large positions, while looking for the next significant catalyst. Later in the day, Existing Home Sales and New Home Sales data will be featured in the US economic calendar. On Friday, September Consumer Price Index (CPI) data from the US could trigger a big market reaction.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the strongest against the Japanese Yen.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.61% | 0.61% | 1.27% | -0.21% | -0.24% | -0.19% | 0.75% | |
| EUR | -0.61% | 0.00% | 0.76% | -0.81% | -0.73% | -0.86% | 0.16% | |
| GBP | -0.61% | -0.01% | 0.49% | -0.80% | -0.74% | -0.87% | 0.13% | |
| JPY | -1.27% | -0.76% | -0.49% | -1.54% | -1.52% | -1.52% | -0.62% | |
| CAD | 0.21% | 0.81% | 0.80% | 1.54% | 0.03% | -0.05% | 0.96% | |
| AUD | 0.24% | 0.73% | 0.74% | 1.52% | -0.03% | -0.13% | 0.88% | |
| NZD | 0.19% | 0.86% | 0.87% | 1.52% | 0.05% | 0.13% | 1.01% | |
| CHF | -0.75% | -0.16% | -0.13% | 0.62% | -0.96% | -0.88% | -1.01% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
Reuters reported early Thursday that the White House is considering a plan to curb an array of software-powered exports to China to retaliate against Beijing's latest round of rare earth export restrictions. "If these export controls, whether it's software, engines or other things happen, it will likely be in coordination with our G-7 allies," US Treasury Secretary Scott Bessent said. In the meantime, US President Donald Trump said that he thinks they will be able to work something out with Chinese President Xi Jinping when they meet in South Korea next week. US stock index futures trade mixed in the European morning on Thursday, while the US Dollar Index clings to modest gains at around 99.00.
Following a three-day slide, EUR/USD held its ground on Wednesday and registered small daily gains. Early Thursday, the pair struggles to find direction and trades in a narrow channel near 1.1600. Later in the session, the European Commission will publish the preliminary Consumer Confidence data for October.
GBP/USD staged a late rebound and closed the day marginally lower after staying under pressure in the European session on Wednesday, as markets reacted to softer-than-expected September inflation data from the UK. In the European morning, the pair holds steady near 1.3350.
After losing more than 5% on Tuesday, Gold extended its correction toward $4,000 early Wednesday. The cautious market mood helped XAU/USD erase some of its daily gains in the second half of the day. Early Thursday, Gold fluctuates slightly above $4,100.
USD/JPY preserves its bullish momentum and builds on its weekly gains. At the time of press, the pair was trading at its highest level in 10 days near 152.50, rising more than 0.3% on the day. In the early Asian session on Friday, preliminary Manufacturing and Services Purchasing Managers Index (PMI) data for October will be featured in the Japanese economic calendar.
US-China Trade War FAQs
Generally speaking, a trade war is an economic conflict between two or more countries due to extreme protectionism on one end. It implies the creation of trade barriers, such as tariffs, which result in counter-barriers, escalating import costs, and hence the cost of living.
An economic conflict between the United States (US) and China began early in 2018, when President Donald Trump set trade barriers on China, claiming unfair commercial practices and intellectual property theft from the Asian giant. China took retaliatory action, imposing tariffs on multiple US goods, such as automobiles and soybeans. Tensions escalated until the two countries signed the US-China Phase One trade deal in January 2020. The agreement required structural reforms and other changes to China’s economic and trade regime and pretended to restore stability and trust between the two nations. However, the Coronavirus pandemic took the focus out of the conflict. Yet, it is worth mentioning that President Joe Biden, who took office after Trump, kept tariffs in place and even added some additional levies.
The return of Donald Trump to the White House as the 47th US President has sparked a fresh wave of tensions between the two countries. During the 2024 election campaign, Trump pledged to impose 60% tariffs on China once he returned to office, which he did on January 20, 2025. With Trump back, the US-China trade war is meant to resume where it was left, with tit-for-tat policies affecting the global economic landscape amid disruptions in global supply chains, resulting in a reduction in spending, particularly investment, and directly feeding into the Consumer Price Index inflation.
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