As we head into Wednesday, April 23, 2025, global financial markets are navigating mixed macroeconomic signals with caution. Recent economic releases from the U.S., Eurozone, and U.K. have offered little clarity on growth trajectories, prompting traders to reassess their risk appetite. The U.S. dollar remains on watch as investors digest PMI results, home sales data, and commentary from central bank officials.
In the currency markets, the EUR/USD pair dropped sharply following weaker-than-expected Eurozone PMI data and a slight rebound in U.S. fundamentals. Meanwhile, GBP/USD retraced earlier gains, reacting to disappointing U.K. Services and Manufacturing PMIs. The USD/CAD pair moved within a volatile range, as traders balanced Canadian inflation data with fluctuations in crude oil inventories and broader dollar sentiment.
EUR/USD
Technicals in Focus
The EUR/USD pair fell sharply, closing near 1.1440, marking a notable bearish shift after early-session strength faded. The move followed a broad decline in Eurozone PMI figures, with the HCOB Services and Manufacturing PMIs both undershooting expectations.
From a technical perspective, the pair has broken below short-term support, with candles showing strong selling pressure into the U.S. session. Momentum appears weak, and the pair is approaching a key technical zone near 1.1430.
Trading Strategy: Neutral to Sell
- Sell below 1.1440–1.1460
Targets: 1.1410, 1.1380
Stop Loss: Above 1.1480 - Alternatively, buy above 1.1480 with upside targets of 1.1510 and 1.1540, stop below 1.1440
GBP/USD
Technicals in Focus
GBP/USD exhibited heavy intraday volatility before tumbling toward the 1.3340 area by the end of the session. The release of the S&P Global U.K. PMI reports weighed heavily on sterling sentiment, especially after Services PMI fell to 52.5 from a prior 54.2. Technically, the pair broke key intraday support, forming a series of lower highs and lower lows, with strong bearish candles confirming downside momentum.
Trading Strategy: Bearish Bias
- Sell below 1.3360–1.3375
Targets: 1.3330, 1.3300
Stop Loss: Above 1.3405 - A break above 1.3405 may shift bias to neutral with upside capped at 1.3435
USD/CAD
Technicals in Focus
The USD/CAD pair remained volatile but showed signs of recovery by the end of the trading day, closing near 1.3810. The pair initially declined, reflecting softness in the USD, but rebounded after U.S. crude inventories came in at 0.515M, suggesting modest demand and potential dollar strength.
Technically, the pair bounced off support near 1.3785 and now faces near-term resistance at 1.3835. However, consolidation may continue unless a catalyst breaks the current range.
Trading Strategy: Neutral to Buy
- Buy above 1.3815–1.3830
Targets: 1.3855, 1.3885
Stop Loss: Below 1.3790 - Alternatively, sell below 1.3790 with downside targets of 1.3760 and 1.3730, stop above 1.3815
Market Outlook
Looking ahead, traders will closely monitor Eurozone sentiment following underwhelming PMI reports, with the euro still vulnerable to weak growth expectations. In the U.K., market focus shifts to inflation and BoE commentary as policymakers assess economic resilience. Across the Atlantic, U.S. markets remain sensitive to jobless claims and upcoming durable goods data, as investors seek confirmation of Fed policy direction.
The Canadian dollar may continue to trade in tandem with crude oil trends, though upcoming GDP and employment data will likely dictate the next leg for USD/CAD. With volatility rising, traders should brace for potential breakouts across major pairs.