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The dollar index continues to strengthen, and the Fed remains cautious internally
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Review]: The US dollar index continues to strengthen, and the Federal Reserve remains cautious internally." Hope it will be helpful to you! The original content is as follows:
On August 22, in the early trading of Asian market on Friday, Beijing time, the US dollar index hovered around 98.58. On Thursday, the US dollar index continued to strengthen, rising to an intraday high of 98.67 for a while, and finally closed up 0.43% to 98.62; the benchmark 10-year U.S. Treasury yield closed at 4.330%, and the 2-year U.S. Treasury yield closed at 3.794%. Spot gold continued to fall after opening, and fell to an intraday low of $3325.19 for a while during the session, and then recovered some lost ground and finally closed down 0.29%, closing at $3338.55/ounce; spot silver closed up 0.56%, at $38.10/ounce. Crude oil rose nearly 1% as Russia and Ukraine accused each other of stagnating the peace process and earlier U.S. data showed signs of strong demand from the largest oil consumer. WTI crude oil returned to above $63 and finally closed up 0.98% at $63.38/barrel; Brent crude oil finally closed up 0.86% at $67.00/barrel.
Analysis of major currency trends
Dollar Index: As of press time, the US dollar index hovered at $98.58. The market's response to the minutes of the FOMC meeting was relatively flat, because the meeting was held before the release of the latest employment and inflation data. Additionally, investors are choosing to wait for Fed Chairman Powell to speak at Jackson Hall Economics Symposium before building large positions on the Fed’s possible policy outlook. Technically, the support level is currently clearly defined between 98.317 and 97.859, and the key volatility low of 97.626 marks downside risk. The daily chart shows room for further upside, especially forIf Powell avoids overturning growing expectations of interest rate cuts.
Analysis of gold and crude oil market trends
1) Analysis of gold market trends
On Friday, gold hovered around 3339.56. Federal Reserve Chairman Powell is scheduled to deliver economic outlook and Fed policy stance at the annual global central bank meeting held in Jackson Hall on Friday, and Powell's speech is expected to trigger a major market trend. Gold prices fell on Thursday after mixed data released by the United States, with gold falling 0.3% on Thursday, while traders prepared for the Jackson Hall seminar, waiting for Fed Chairman Powell's speech on Friday.
2) Analysis of crude oil market trends
On Friday, crude oil trading was around 63.39. WTI crude oil rose to near a two-week high due to signs of strong U.S. demand and uncertainty in efforts to end the Ukrainian war. Data released by the U.S. Energy Information Administration (EIA) on Wednesday showed that crude oil inventories fell more than expected last week. The weekly report notes strong demand in the world's largest oil consumer and supports WTI prices. U.S. crude oil inventories fell by 6.014 million barrels in the week ending August 15, up 3.036 million barrels the previous week. The market is consistently estimated that inventory will be reduced by 1.3 million barrels.
Forex market trading reminder on August 22, 2025
14:00 Germany's second quarterly unrevised GDP annual rate final value
20:30 Canada's June retail sales monthly rate
22:00 Federal Reserve Chairman Powell delivered a speech
01:00 the next day to the total number of oil drilling rigs from the United States to August 22
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