Forex Today: Stock Market Selloff Continues on AI Valuation Fears

By Adam Lemon Created on November 05, 2025

Global stock markets are continuing to sell-off on fears of excessive valuations, especially in tech / AI.

Stock markets are continuing to fall, as almost all indices have turned bearish, led lower by the Korean KOSPI Composite, which is down by more than 2.85% on the day. The US NASDAQ 100 and S&P 500 Indices also fell yesterday. The trigger for the selloff was poor earnings data reported Monday by the big tech firm Palantir, but the background uneasiness over stretched overvaluations, especially concerning semiconductor stocks, was the fertile ground for the fear to take root. It is still a bull market, but we may now see a relatively deep correction at least. Trend traders will be sitting tight in the meantime on their long positions in stock indices.
China has removed or suspended some tariffs on US imports following its recent trade deal with the USA. Tariffs on agricultural imports will be removed on 10^th November, and the 24% tariffs will be suspended for a year, reducing to 10%. This will help US firms who are exporting to China.
Attention is shifting towards the US Supreme Court, which will begin to hear opening arguments today on the legality of President Trump’s tariffs which have been imposed this year. Interpretations of the US constitution differ on whether the President has the power to decree such tariffs. If the Supreme Court finds the tariffs were unlawful, which is unlikely, we can expect a lot of volatility in capital markets.
In the Forex market, the New Zealand Dollar has been the strongest major currency since today’s Tokyo open, while the Japanese Yen has been the weakest, although the values are so small as to be practically meaningless. The USD/JPY currency pair remains in focus after triggering a long trade entry at most trend-following funds three weeks ago and is looking more bullish after finding support near ¥153.00. Trend traders will still want to be long here, and momentum traders will be looking for a bullish breakout.
Soybean futures have made a new bullish breakout to a 4-month high price, which is attracting some trend followers to trade it long. Soybeans got a boost last week when China agreed to resume purchases of US soybeans. If Soybean futures are too big and expensive for you, you could consider the more accessible and affordable ETF SOYB if you want exposure.
Bitcoin traded at a new 4-month low price not far from the big round number at $100,000. The dominant risk-off sentiment will tend to depress the price of Bitcoin. A sustained break below $100,000 might trigger an even sharper fall, although this area might also act as support and see buyers step in.
There will be two high-impact data releases today, and both concern the USA:
1. ADP Non-Farm Employment Change Forecast (this is expected to show only 32k new jobs were created last month).
2. ISM Services PMI