EUR/USD-US dollar took it on the chin when risk-off emerged

Zions Bancorporation, National Association

16/10/2025 18:19

NY opened near 1.1655 after 1.1644 traded overnight, muted trade then ensued

Buying eventually emerged however as early risk-on sentiment shifted to risk-off

Drop in U.S. regional bank stocks helped to underpin the soured risk sentiment

US yields US2YT=RR fell which took US$ lower; stocks ESv1 erased gains & fell

Gold XAU= rallied and the VIX .VIX traded up over 11.0% in NY's afternoon

EUR/USD added to gains, neared the daily cloud top and 21- & 55-DMAs

The pair traded above 1.1690 and a 7-session high, was up +0.36% late in the day

Rising daily RSI, monthly bull hammer candle could be worries for EUR/USD shorts

For more click on FXBUZ

eurusd https://fingfx.thomsonreuters.com/gfx/buzz/xmvjeaynxpr/eurusd16-Oct-25%201-09-49%20PM.png

(Christopher Romano is a Reuters market analyst. The views expressed are his own)

((christopher.romano@thomsonreuters.com;))