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The US dollar index fluctuates downward, and the market expects the Federal Reserve to keep interest rates unchanged
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Decision Analysis]: The US dollar index fluctuates and goes down, and the market expects the Federal Reserve to maintain interest rates unchanged." Hope it will be helpful to you! The original content is as follows:
On May 7, in the early trading of Asia on Wednesday, Beijing time, the US dollar index hovered around 99.53. On Tuesday, the U.S. dollar index fluctuated downward throughout the day, eventually closing down 0.54% to 99.24 as the U.S. trade deficit widened to a record $140.5 billion in March. The benchmark 10-year U.S. Treasury yield closed at 4.3020%; the two-year U.S. Treasury yield closed at 3.7910%. As the United States may impose tariffs on imported drugs, Asian buyers returned to the gold market after the holiday. Spot gold rose by nearly $100 again on Tuesday, and finally closed up 2.85% to $3431.11/ounce; at the beginning of the Asian session on Wednesday, gold fell nearly 1% during the day, fell nearly $30 in the early trading, hitting $3400/ounce. Spot silver closed up 2.33% on Tuesday at $33.22 per ounce. International oil prices rose sharply due to increased demand in Asia and Europe, decline in U.S. production, and Israel's escalation of the situation again. WTI crude oil finally closed up 3.18% at $58.97 per barrel; Brent crude oil closed up 2.84% at $62.01 per barrel.
Analysis of major currencies
Dollar Index: As of press time, the US dollar index hovers around 99.53. Investors are awaiting details of what the Trump administration says is being negotiated with other countries, including China. Trump said Sunday that some agreements will be announced this week. In addition, the market is paying attention to the Fed's policy decision announced on Wednesday, and the Fed is expected to keep interest rates unchanged at the meeting, but this meeting may be the last meeting with such a clear result. Technically, if the U.S. dollar index closes below the 99.50 level, it will move towards the nearest support level 98.80–99.00.
Analysis of gold and crude oil market trends
1) Analysis of gold market trends
Which trading was held in Asian trading on Wednesday, gold trading was around 3376.75. Against the backdrop of rising global economic uncertainty, the Federal Reserve and the Bank of England are taking different policy positions to deal with challenges. The Fed is expected to keep its policy unchanged at its meeting Wednesday, with Powell resistant to pressure from the White House rate cuts, indicating that the Federal Open Market xmmarkets.cnmittee (FOMC) is cautious about further lowering interest rates.
2) Analysis of crude oil market trends
On Wednesday, crude oil trading was around 59.37. International oil prices rebounded strongly by about 4%, after OPEC's decision to increase production caused prices to plummet to four-year lows. After a round of technical oversold market, the market has ushered in multiple positives from improved demand from China and Europe, rising geopolitical tensions in the Middle East and weakening of the US dollar.
Forex market trading reminder on May 7, 2025
①To be determined China's April foreign exchange reserves
②09:00 The State Council Information Office held a press conference
③14:45 France March trade account
④17:00 Eurozone March retail sales monthly rate
⑤22:30 EIA crude oil inventories in the week from the United States to May 2
⑥22:30 EIA Cushing crude oil inventories in the week from the United States to May 2< /p>
⑦22:30 The EIA strategic oil reserve inventory in the week from the United States to May 2
⑧The next day, the Federal Reserve FOMC announced the interest rate resolution
⑨The next day, the Federal Reserve Chairman Powell held a press conference
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