The USD is lower to start the new trading day vs the EURUSD, USDJPY and GBPUSD.
The USD is lower vs. the 3 major currency pairs a day after a run lower after Pres. Trump and his administration threw out trial balloons that tariffs vs China would not be sustained and that other deals with Japan and India are close. However, they called the deals “memorandums of understanding” or a broad “architecture” for future deals, and that the thorny details would be hammered out later. HMMMMM
At the end of the day, China has not come racing for a deal. Japan officials today, said they would resists US request to form anti-China trade bloc citing their trader relationship with country.
From China's perspective:
China’s MOFCOM says China-US trade talk criticisms are “groundless”. The US should lift unilateral tariffs if they want to resolve the issue.
Chinese FM Gou says US-China tariff talks not started; will fight tariff war "if we have to"
China's FM says no deal reached yet on tariffs
Chinese President Xi: Willing to work with others to uphold international trade norms
In the video above, I focus on the technicals to define risk, bias, targets for the EURUSD, USDJPY and GBPUSD to start the US trading day. With all the news, the price action tells the story. It may be a up and down technical story, but the levels give traders a bias and riks level that can be useed to limit risk, while hoping for a directional move.
US stocks are modestly lower as a result of the less friendly headlines today. The futures are currently imploying:
- Dow industrial average down -190 points
- S&P index down -15 points.
- NASDAQ index down -18 point
Some earnings releases this morning:
Procter & Gamble (PG) Q3 2025: EPS $1.54 (beat; exp. $1.52), Revenue $19.8B (beat; exp. $20.08B); FY organic growth +2% (prev. +3-5%)
Comcast (CMCSA) Q1 2025: EPS $1.09 (beat; exp. $0.99), Revenue $29.89B (beat; exp. $29.78B)
Bristol-Myers Squibb (BMY) Q1 2025: EPS $1.80 (beat; exp. $1.49), Revenue $11.2B (beat; exp. $10.7B)
Merck & Co (MRK) Q1 2025: EPS $2.22 (beat; exp. $2.13), Revenue $15.53B (in line; exp. $15.38B)
PepsiCo (PEP) Q1 2025: Core EPS $1.48 (beat; exp. $1.49), Revenue $17.9B (beat; exp. $17.4B)
In the European equity markets