Posted at 26 August 2025 / Categories Market Roundups
Market Roundup
• Canada Corporate Profits (QoQ) -1.7%, 2.7% previous
• French 12-Month BTF Auction 1.994%, 1.980% previous
• French 3-Month BTF Auction 1.974%, 1.963% previous
• French 6-Month BTF Auction 1.963%, 1.973% previous
• Belgium NBB Business Climate (Aug) -8.9, -10.8 previous
• US New Home Sales (Jul) 652K, 656K forecast, 635K previous
•US New Home Sales (MoM) (Jul) -0.6%, 4.1% previous
•US Dallas Fed Mfg Business Index (Aug) -1.8, 0.9 previous
•US 3-Month Bill Auction 4.100%, 4.130% previous
•US 6-Month Bill Auction 3.915%, 3.945% previous
Looking Ahead Economic Data (GMT)
• 05:00 Japan BoJ Core CPI (YoY) 2.4% forecast, 2.3% previous
Looking Ahead Events and Other Releases(GMT)
• 01:30 RBA Meeting Minutes
Currency Forecast
EUR/USD : The euro edged higher on Monday as investors continued to digest the implications of Federal Reserve Chair Jerome Powell’s dovish remarks on Friday. Powell signaled on Friday that the Fed may lower rates at its September 17 meeting, citing rising risks to the labor market while cautioning that inflation remains a concern and no decision has been finalized. Data ahead of the Fed’s September 16-17 meeting could influence policy, with Friday’s U.S. personal consumption prices report the Fed’s preferred inflation gauge is in focus. Markets are now pricing in an 80% chance of a quarter-point cut in September and a total of 48 basis points of easing in 2025. Immediate resistance can be seen at 1.1792(23.6%fib), an upside break can trigger rise towards 1.1829(Higher BB).On the downside, immediate support is seen at 1.1631 (38.2%fib), a break below could take the pair towards 1.1488(50%fib ).
GBP/USD: The pound held onto its gains on Monday as investors reacted to Federal Reserve Chair Jerome Powell’s dovish comments, which raised expectations of a potential rate cut in the near term. as investors reacted to Federal Reserve Chair Jerome Powell’s dovish comments, which raised expectations of a potential rate cut in the near term. The dollar’s recent weakness stemmed from Fed Chair Jerome Powell’s dovish remarks at Jackson Hole on Friday, where he signaled the possibility of a rate cut at next month’s meeting. Attention now turns to key U.S. data, with the Fed’s preferred inflation gauge, the PCE deflator, due Friday, followed by the August payrolls report next week. Immediate resistance can be seen at 1.3509(Aug 20th high), an upside break can trigger rise towards 1.3583(38.2%fib).On the downside, immediate support is seen at 1.3435(50%fib), a break below could take the pair towards 1.3403(Lower BB).
USD/CAD: The Canadian dollar weakned against its U.S. counterpart on Monday as dollar recovered after a steep fall last week that following dovish remarks from Federal Reserve Chair Jerome Powell .At the Fed’s annual Jackson Hole symposium on Friday, Chair Jerome Powell highlighted rising risks to the labor market while also warning that inflation remains a concern, stopping short of committing to a decision on a potential rate cut.The Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge, is set for release on Friday and will serve as a key barometer for market expectations around rate cuts.In Canada, second-quarter GDP data due on Friday will be closely watched to assess the economic impact of tariffs. Immediate resistance can be seen at 1.3833(38.2% fib), an upside break can trigger rise towards 1.3916 (Higher BB).On the downside, immediate support is seen at 1.3762(SMA20), a break below could take the pair towards 1.3742(38.2%fib).
USD/JPY: The U.S. dollar strengthened against the Japanese yen on Monday, rebounding from last week’s sharp decline triggered by remarks from Federal Reserve Chair Jerome Powell that raised expectations of a rate cut next month. Powell indicated that while risks to the labor market were increasing, inflation remained a concern and no decision on interest rates had been made.Investors are now awaiting Friday’s U.S. personal consumption expenditures (PCE) report, the Fed’s preferred gauge of inflation, to gain further clarity on potential policy moves. Meanwhile, hotter-than-expected U.S. producer price data last month has fueled some uncertainty about the timing of any rate cut.On the trade front, U.S. President Donald Trump said on Monday he hopes to meet North Korean leader Kim Jong Un this year and remains open to further trade talks with South Korea, despite criticizing the visiting Asian ally. Immediate resistance can be seen at 148.72(38.2%fib) an upside break can trigger rise towards 147.70(Higher BB) .On the downside, immediate support is seen at 146.64(50%fib) a break below could take the pair towards 145.93 (Lower BB).
Equities Recap
European stocks closed lower on Monday, reversing Friday’s gains that were driven by optimism over potential U.S. monetary policy easing.
UK's benchmark FTSE 100 closed up by 0.13 percent, Germany's Dax ended down by 0.37 percent, France’s CAC finished the day down by 1.59 percent.
Wall Street closed lower Monday as investors weighed U.S. interest rate prospects and awaited Nvidia’s earnings, following Friday’s Dow record high.
Dow Jones closed down by 0.77% percent, S&P 500 closed down by 0.43% percent, Nasdaq settled down by 0.22% percent.
Commodities Recap
Gold prices remained steady on Monday as investors awaited the upcoming U.S. PCE report for guidance on the Federal Reserve’s policy direction.
Spot gold was flat at $3,372.67 per ounce, as of 0145 p.m. ET (17:44 GMT), after hitting its highest level since August 11 on Friday. U.S. gold futures for December delivery settled 0.03% lower at $3,417.5.
Oil prices climbed about 2% on Monday, extending last week’s gains, as traders weighed the potential impact of additional U.S. sanctions on Russian oil and Ukrainian attacks on Russian energy infrastructure, both of which could tighten global supply.
Brent crude futures settled up $1.07, or 1.58%, at $68.80, while West Texas Intermediate crude futures gained $1.14, or 1.79%, to $64.80.