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Britain and the United States reach "breakthrough" trade agreement, Bank of England cuts interest rates by 25 basis points
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Official Website]: Britain and the United States reached a "breakthrough" trade agreement, and the Bank of England cut interest rates by 25 basis points." Hope it will be helpful to you! The original content is as follows:
On May 9, in the early trading of Asian market on Friday, Beijing time, the US dollar index hovered around 100.66. On Thursday, Trump announced a "breakthrough" trade deal with the UK, and the U.S. dollar index hit its highest reading since April 10, finally closing up 0.76% to 99.86. The benchmark 10-year U.S. Treasury yield closed at 4.2740%; the two-year U.S. Treasury yield closed at 3.7870%. Spot gold once hit $3290 and finally closed down 1.79% at $3304.98/ounce; spot silver closed down 0.15% at $32.45/ounce. International oil prices rose by more than 3% due to the UK-US trade agreement and the United States' announcement of sanctions on Iranian oil xmmarkets.cnpanies. WTI crude oil finally closed up 3.99% at $60.22 per barrel; Brent crude oil closed up 3.69% at $63.17 per barrel.
Analysis of major currencies
Dollar Index: As of press time, the US dollar index hovers around 100.55. Sentiment remained firmly high and boosted the US dollar (USD) after the Trump administration announced an upcoming U.S.-UK trade deal that would allow Britain to avoid high "peer-to-peer" tariffs that would re-invigorate on July 9. President Trump temporarily withdrew his own "liberation day" tariffs. The United States will still impose a 10% tariff on all imports from the UK, which may curb market sentiment in the near future. Technically, the U.S. dollar index is trying to close above resistance levels 100.20–100.40. If this attempt is successful, the U.S. dollar index will reach the next resistance level 101.40–101.60move.
Analysis of gold and crude oil market trends
1) Analysis of gold market trends
On the Asian session on Friday, gold trading around 3320.21. Gold continued its decline on Thursday, falling nearly 2%. Spot gold hit a low of $3,288.72/ounce intraday, closing at $3,305.70/ounce. It was followed by US President Trump’s announcement of a trade agreement with the UK, which increased hopes of reaching such agreements with other countries, alleviated market tensions, and suppressed gold’s safe-haven buying. The rise in US dollar, US stocks and US Treasury yields also suppressed the trend of gold prices. This trading day requires close attention to news related to the international trade situation and changes in market sentiment. In addition, many Fed officials will make speeches, and investors also need to pay attention.
2) Analysis of crude oil market trends
On Friday, crude oil trading was around 59.62. As the Sino-US trade war is expected to peak, oil prices are expected to continue their rebound momentum, breaking through $60 per barrel. The United States and China will hold trade talks this week. OPEC+ has announced that it will increase oil production at a faster rate. Overnight, Brent and WTI crude oil fell 1.66% and 1.73% respectively, mainly due to the lack of confidence in the results of the trade talks, and the positive signals released by the Iran nuclear agreement negotiations alleviated concerns about supply shortages. The current trend of international crude oil prices is entering a sensitive period of multiple factors. The uncertainty of trade negotiations poses dual pressures to Iran's supply potential, and short-term oil price fluctuations will be more dominated by geopolitics and inventory dynamics. Against the backdrop of Fed's policy staying on the sidelines, weak signals on the demand side may also put pressure on the crude oil market. This trading day requires close attention to news related to the international trade situation and changes in market sentiment. In addition, many Fed officials will make speeches, and investors also need to pay attention.
Forex market trading reminder on May 9, 2025
①To be determined China's April trade account
②15:00 Switzerland's April consumer confidence index
③16:40 Bank of England Governor Bailey made a speech
④17:55 Fed Governor Barr made a speech
⑤18:45 Fed Governor Kugler made a speech
⑥20:30 Canadian jobs in April
⑦20:30 Fed Williams made a keynote speech
⑧20:30 Fed Barkin attended a fireside conversation
⑨22:00 Fed Gulsby delivered a speech at the event
⑩23:30 Fed Williams sentTable Speech
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