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The Federal Reserve's bet on interest rate cuts stimulates the world! Market calmed before the release of mid-range data in the United States

Post time: 2025-08-05 views

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Hello everyone, today XM Forex will bring you "[XM official website]: The Federal Reserve's interest rate cut bet stimulates the world! The market has calmed before the release of the US mid-range data." Hope it will be helpful to you! The original content is as follows:

On August 5, the market stabilized on Monday after the violent fluctuations last weekend. Earlier on Tuesday, major currency pairs traded in a relatively narrow range, with investors awaiting the next catalyst. Later in the session, the U.S. Economic Calendar will release the vifu.netmodity trade balance and the ISM Service Industry Purchasing Managers Index (PMI) data for July and June.

The US dollar index stood firm on Monday and closed basically flat. The index maintained a slight gain during the European session on Tuesday and remained just below 99.00. Meanwhile, U.S. stock index futures rose slightly after major Wall Street stock indexes rose more than 1% on Monday.

U.S. President Donald Trump announced on Monday that he would "significantly" raise tariffs on Indian imports, saying India buys large amounts of Russian oil and sells it on the open market to make "huge profits." The Indian rupee faces heavy selling pressure after the remarks, with the U.S. dollar/Indian rupee rising about 0.8% on Monday, hitting an all-time high of around 88.25 earlier on Tuesday. According to Reuters, the Reserve Bank of India may sell US dollars through state-owned banks to limit losses in the Indian rupee. As of this writing, the USD/Indian Rupee fell slightly on the day to close to 88.00.

Basic foreign exchange market trends:

During the Asian trading period, data from China showed that Caixin's service industry PMI improved from 50.6 in June to 52.6 in July. This reading was better than the market expected by 50.2. The Australian dollar/USD is still under moderate bearish pressure, with European trading around 0.6450 in early trading.

Euro/USD fell slightly after a slight decline on Monday and below 1.1550fluctuation. The European Statistics Office will release June producer price index data later in the session. The EU announced on Monday that it would postpone the retaliatory tariff plan against U.S. tariffs, which was scheduled to take effect on Thursday, for six months.

The pound/dollar was trading sideways below 1.3300 on Tuesday. The UK Debt Management Office will hold a 10-year bond auction. On Thursday, the Bank of England (BoE) will announce monetary policy decisions.

The USD/JPY fluctuated in a narrow channel around 147.50 after failing to make a decisive move in either direction on Monday.

Bulle market fundamentals:

On vifu.netmodities, oil prices fell slightly because OPEC increased production; gold hovered near a weekly high and is currently slightly down to $3,368.44.

Analysis of major currency trends:

Euro: Euro/USD fell after hitting the 55 4-hour moving average (currently 1.1573), and the intraday bias first turned neutral. On the upside, a correction from 1.1829 above will be confirmed that the correction from 1.1829 has been vifu.netpleted, and three waves of corrections were made at 1.1390. Further rebound should be seen to retest the 1.1788/1820 resistance zone. On the downside, breaking through 1.1390 will resume correction to the 38.2% retracement level 1.0176 to 1.1829, that is, 1.1198.

The Federal Reserves bet on interest rate cuts stimulates the world! Market calmed before the release of mid-range data in the United States(图1)

Pound: The intraday bias of pound/dollar remains neutral at present. On the positive side, continuing to break through the 1.3363 support level and turn to resistance level will indicate that the decline has been vifu.netpleted, forming a three-wave correction. Next, you should see a further rebound back to the 1.3587 resistance level. Nevertheless, if it continues to fall below the 38.2% retracement level 1.2099 to 1.3787 (1.3142), it will aim at the 61.8% retracement level 1.2744.

The Federal Reserves bet on interest rate cuts stimulates the world! Market calmed before the release of mid-range data in the United States(图2)

Yen: The intraday bias of the US dollar/yen is currently neutral. On the plus side, a stronger rebound above 148.07 will be brought, retesting 150.90. Breakthrough will resume the rebound starting from 139.87. On the downside, however, is that a firm breakout of 145.84 support will indicate that the full rise from 139.87 may have been vifu.netpleted. It should then fall further to 142.66 support level to confirm.

The Federal Reserves bet on interest rate cuts stimulates the world! Market calmed before the release of mid-range data in the United States(图3)

The above content is about "[XM official website]: The Federal Reserve's interest rate cut bets stimulate the world! The market has calmed down before the release of the US mid-range data", which is carefully vifu.netpiled by the editor of XM ForexEdited, I hope it will be helpful to your transaction! Thanks for the support!

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