Posted at 26 August 2025 / Categories Market Roundups
Market Roundup
• Japan BoJ Core CPI (YoY) 2.0% ,2.4%forecast, 2.3% previous
• Japan Corporate Services Price Index (CSPI) (YoY) 2.9%, 3.2%forecast,3.2% previous
Looking Ahead Economic Data (GMT)
• 11:00 Spanish Consumer Confidence (Jul) 76.1 previous
Looking Ahead Events and Other Releases (GMT)
• No Events Ahead
Currency Forecast
EUR/USD : The euro edged higher against the dollar on Tuesday after the greenback weakened following President Donald Trump’s unprecedented move to remove Federal Reserve Governor Lisa Cook. The dismissal raised concerns about political interference in monetary policy, unsettling investors.The dollar’s decline reflects speculation that a reshaped Fed could lean more dovish, though analysts cautioned that further weakness would likely hinge on softer upcoming U.S. economic data, particularly growth and inflation figures. Immediate resistance can be seen at 1.1679(38.2%fib), an upside break can trigger rise towards 1.1794(23.6%fib).On the downside, immediate support is seen at 1.1585(50%fib), a break below could take the pair towards 1.1493(61.8%fib ).
GBP/USD: The pound edged higher against the dollar on Monday as the U.S. currency weakened after U.S. President Donald Trump said he was removing Federal Reserve Governor Lisa Cook from her position. U.S. President Donald Trump on Monday said he was dismissing Federal Reserve Governor Lisa Cook over alleged improprieties in mortgage applications. In a letter, Trump claimed he had “sufficient cause” to remove her, citing 2021 loan documents in which Cook reportedly listed properties in both Michigan and Georgia as her primary residence. The move, targeting the first African-American woman to serve on the Fed’s board, is unprecedented and could spark a legal test of presidential authority over the central bank’s independence if challenged in court. 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).
AUD/USD: The Australian dollar traded in tight range on Tuesday as investors digested latest minutes from the Reserve Bank of Australia. Minutes from the RBA’s August 11–12 meeting showed policymakers backed a 25 bps cut to 3.6%, citing data pointing to inflation moving toward the midpoint of the 2–3% target range.The RBA said its board considered accelerating the rundown of government bond holdings but ultimately agreed to stick with the current strategy of allowing them to mature.Policymakers noted that sustaining full employment and keeping inflation low and stable would likely require additional rate cuts over the coming year. Investors expect the RBA to hold rates in September and cut in November to 3.35%, with markets pricing rates to settle near 3.10% and potentially as low as 2.85%.. Immediate resistance can be seen at 0.6517(38.2%fib), an upside break can trigger rise towards 0.6592(Higher BB).On the downside, immediate support is seen at 0.6486(SMA 20), a break below could take the pair towards 0.6404(50%fib).
USD/JPY: The U.S. dollar edged lower against the yen on Tuesday as the dollar eased following President Trump’s announcement of Fed Governor Lisa Cook’s removal over alleged mortgage fraud.Trump told Fed Governor Lisa Cook she was being fired over alleged mortgage improprieties, but Cook rejected the move, saying he lacks authority and she will not resign.The move marks an unprecedented escalation in Trump’s clash with the Fed over slow rate cuts, heightening investor concerns about the central bank’s independence. Investor attention is now centered on the upcoming Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation measure, for fresh guidance on the U.S. interest rate outlook. The report, scheduled for release on Friday, will be closely watched for signals on the timing and pace of potential Fed rate cuts. 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
Asian equities fell sharply on Tuesday after President Donald Trump’s surprise move to dismiss Federal Reserve Governor Lisa Cook rattled investor confidence in the independence of the U.S. central bank.
South Korea’s KOSPI was down 0.95% , Hang Seng was down 1.14, Japan’s Nikkei 225 was down`1.10%
Commodities Recap
Gold climbed to a two-week high on Tuesday after the dollar slipped in the wake of President Donald Trump’s announcement that he was removing Federal Reserve Governor Lisa Cook.
Spot gold gained 0.2% to $3,374.49 per ounce, as of 0644 GMT, after hitting its highest level since August 11 earlier in the session. U.S. gold futures for December delivery rose 0.1% to $3,421.50.
Oil prices edged lower on Tuesday, easing after nearly 2% gains in the previous session. Traders remained cautious as they monitored developments in the Ukraine war, with any escalation raising the risk of disruptions to Russian fuel supplies and adding volatility to the market.
Brent crude fell 37 cents, or 0.5%, to $68.43 per barrel at 0658 GMT, while West Texas Intermediate (WTI) crude also lost 40 cents, or 0.6%, to $64.40 per barrel.