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investingLive Americas FX news wrap 25 Aug:The USD moved steadily higher in the US session | investingLive

The USD was little changed to start the US session. London was off for a summer holiday long weekend. As a result activity was limited. The USD was still a bit higher after the sharp sell off after the Friday speech from Fed Chair Powell speech.

Today yields were a bit higher to start the day and although they did not run to the upside (and came back down toward the end of the day),, the USD was a different story. After starting off slow, it started to creep higher and that move did not really abate (although it was orderly) for most of the US session.

Near the end of day, the greenback is higher vs all the major currencies with the EUR the weakest

  • EUR: +0.78%
  • JPY +0.50%
  • GBP +0.48%
  • CHF +0.55%
  • CAD +0.20%
  • AUD +0.08%
  • NZD +0.29%

Technically, speaking, some of the key levels to eye going into the new trading day:

EURUSD: The EURUSD has broken decisively lower, falling beneath both the 200- and 100-hour moving averages in the past two hours without much corrective retracement. Selling pressure has also pushed the pair below the converged 100- and 200-bar moving averages on the 4-hour chart near 1.1640, as well as the 50% midpoint of the July trading range at 1.16098.

The latest low touched 1.16019, putting the spotlight on last week’s low at 1.15816 and the prior week’s low at 1.15885. Those levels now form the next key downside targets that traders will be eyeing.

USDJPY: The USDJPY has pushed back above both its 200- and 100-hour moving averages at 147.49 and 147.646, easing some of the bearish pressure from Friday’s sharp decline. The focus now shifts to a swing area between 147.95 and 148.166, which also includes the 38.2% retracement of the August trading range at 148.00. A break through that zone would strengthen the bullish bias and open the door to further recovery.

GBPUSD: The GBPUSD has slipped back below its 100-hour moving average and the 50% midpoint of the July trading range at 1.3464, shifting the near-term bias in favor of sellers. Holding below that level will be key in keeping downside momentum intact.

On the downside, the 100-day moving average at 1.34214 is the next critical target. Last Friday—just ahead of Powell’s speech—the pair briefly fell below that level for the first time since August 7, only to snap back higher on the headlines. A return below the 100-day average this time would add to the bearish tilt and reinforce seller control.

Already, today’s break beneath both the 200- and 100-hour moving averages has tilted the short-term bias more firmly toward the downside.

USDCAD: The USDCAD is rebounding from support between 1.38127 and 1.38315, with the pair now trading near 1.3860. On the upside, the immediate target comes in at the August 1 high at 1.38785, followed by a swing area between 1.3891 and 1.3904. Beyond that sits the 38.2% retracement at 1.39229—a level that capped gains just ahead of Powell’s speech on Friday, when sellers reemerged.

On the downside, it would take a break back below 1.38127 and the rising 100-bar MA on the 4-hour chart at 1.38018 to shift the bias more convincingly toward sellers. Until then, buyers maintain the near-term edge.

Meanwhile, looking at the US debt market, the yields are higher but nearer the lows for the day vs. the highs.

  • 2 year yield 3.725%, +3.8 basis points
  • 5 year yield 3.785%, +2.8 basis points
  • 10 year yield 4.277%, +1.9 basis points
  • 30 year yield, +0.8 basis points

The only economic released today was new home sales for July 2025 which came better than expected at 0.652M, slightly above the 0.630M estimate, though down -0.6% on the month versus a 4.1% gain in June. The prior month was revised higher to 0.656M from 0.627M. On a year-over-year basis, sales fell -8.2%. The median sales price declined to $403,800, down -0.8% from June and -5.9% from a year ago ($429,000), while the average price slipped to $487,300, -3.6% lower than June and -5.0% below July 2024. Supply eased to 9.2 months from 9.8, suggesting some inventory tightening. Mortgage rates during the reporting period were above 6.75%, though the recent dip back toward 6.5% was not reflected in these numbers. Builders continue to discount prices to attract buyers.

US stocks got off to a slow start and although the NASDAQ index did trade in positive territory, it closed lower on the day. It was still better than the down S&P which never traded in positive territory for the entire day.

The final numbers are showing:

  • Dow industrial average -349.27 points or -0.77% at 45282.47
  • S&P index down -27.59 points or -0.43% at 6439.32
  • Nasdaq index down -47.24 points or -0.22% at 21449.2

The small-cap Russell 2000 fell -22.75 points or -0.96% at 2339.1734.

Trump met with South Korean Pres. Lee and said that the meeting went well and they likely have a deal done. Details are forthcoming, however reports were that South Korea would purchase US defense, and potentially aid in shipbuilding.