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Forex Today: Stocks Soar as US Signals Trade Deal With China

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Forex Today: Stocks Soar as US Signals Trade Deal With China

By Adam Lemon Created on October 27, 2025

US officials announced some hours ago a trade deal with China is ready to be concluded, which has sent major equity indices rising sharply higher to new all-time highs.

Sunday saw US Trade Secretary Bessent announce that China is “ready” to conclude a trade deal, with a draft outline already more or less agreed. The deal will likely be formally concluded this Thursday when Presidents Trump and Xi meet: China will back down on rare earth restrictions and the USA will back down on the new 100% tariff which is currently due to take effect next weekend. The news sent stock markets roaring higher, notably:
1. The KOSPI Composite in South Korea gapped higher and rose.
2. The Japanese Nikkei 225 also gapped higher and performed very strongly, rising by more than 2% on the day.
3. The US NASDAQ 100 Index is now closer to 26,000 than 25,000.
4. The US S&P 500 Index has traded above 6,850 with the big round number at 7,000 now in sight.
5. The UK FTSE 100 Index looks set to open at a new record high price.
It is clear that the outlook for stocks is bullish, with this trade deal looming and a Fed rate cut of 0.25% virtually certain to happen later this week. I am very happy to be long of any of these indices, especially the US ones.
In the Forex market, the Australian Dollar has been the strongest major currency since today’s Tokyo open, while the Japanese Yen has been the weakest. The USD/JPY currency pair is in some focus after triggering a long trade entry at most trend-following funds two weeks ago and is looking bullish as long as it holds up above the ¥152.50 area.
Soybean futures look likely to make a bullish breakout to a new 3-month high price today. This may interest some trend or breakout traders. I personally like to wait for a 6-month high price before buying commodities.
Bitcoin is rising strongly in line with the general advance by risky assets, but looks as if it may face strong resistance in the $116,000 area, which might also see the formation of a bearish shoulder in a head and shoulders chart pattern.
There are no high-impact economic data releases scheduled today, so it might be a relatively quiet day in the market, although the huge events anticipated for later this week are more likely to inject above-average volatility into trading.