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The global forex landscape is showing signs of recalibration in October 2025, with major currency pairs navigating a mix of policy uncertainty, macroeconomic divergence and structural stress. At the centre of the action is the US Dollar (USD): has it finally found a floor, or is the respite only temporary? A recent outlook piece underlined a degree of stability returning to FX markets — but cautioned that calm should not be mistaken for safety. Structural vulnerabilities remain, including concentrated dealer activity, currency mismatches and funding-market risks. Technically, pairs such as EUR/USD and USD/JPY are showing corrective waves that hint at further movement ahead. For example, EUR/USD is forecast to revisit 1.1606, and possibly even 1.1488 if bearish momentum resumes. Complicating matters: policy expectations from major central banks remain uncertain. Markets are anticipating a rate cut from the Federal Reserve (Fed) and the Bank of Canada, but commentary suggests caution: rate cuts are likely, but not guaranteed. Domestically, the Indian rupee appreciated slightly, closing at ₹88.20 against the dollar — reflecting overall dollar softness amid global risk-on sentiment. So what should FX traders keep in mind? Watch central-bank cues closely: The timing of rate cuts (or lack thereof) remains the dominant driver for major FX moves. Focus on major cross setups: EUR/USD and USD/JPY remain the most liquid and broadly traded pairs — using technical levels (e.g., 1.1606 for EUR/USD) gives actionable thresholds. Manage risk and volatility: Even if the USD appears stabilised, liquidity pockets and surprise data (like inflation or employment) can trigger sharp moves in either direction. Emerging markets matter: The structural vulnerabilities mentioned above mean that emerging market currencies and funding markets can act as the trigger for broader FX shifts. In sum, while October 2025 may bring a sense of relative calm to FX markets compared to earlier turbulence, the underlying risk framework remains. Traders who approach with clarity, technical discipline and global risk awareness will be better positioned for what lies ahead.