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The dollar index continues to rise, waiting for Federal Reserve interest rate decision
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Hello everyone, today XM Foreign Exchange will bring you "【XM Group】: The US dollar index continues to rise, waiting for the Federal Reserve's interest rate decision". Hope it will be helpful to you! The original content is as follows:
On July 30, in the early trading of Asia on Wednesday, Beijing time, the US dollar index hovered around 98.74. On Tuesday, as investors awaited the Federal Reserve's interest rate decision, a series of important economic data and the results of U.S. trade negotiations, the U.S. dollar index continued to rise, standing above the 99 mark during the session, hitting a five-week high, and finally closing up 0.26% to 98.89. The yields of US Treasury collectively fell, with the benchmark 10-year U.S. Treasury yield closing at 4.326%, and the 2-year U.S. Treasury yield closing at 3.875%. Spot gold stopped falling four consecutive times, touching the $3330 mark for a time, but failed to stand firm and finally closed up 0.35%, closing at $3327.37/ounce; spot silver fluctuated sideways and finally closed up 0.08%, at $38.175/ounce. International crude oil rose sharply as Trump increased its pressure on Russia to reach a peace agreement and the global trade situation showed signs of easing. WTI crude oil once rose 4%, and finally closed up 3.31%, at $68.878 per barrel, the largest single-day increase since June 17; Brent crude oil once stood above the $70 mark and finally closed up 3.14%, at $71.61 per barrel.
Analysis of major currencies
Dollar Index: As of press time, the US dollar index hovered at US$98.74. The Fed is starting a two-day policy meeting as the dollar rises, and no policy changes are expected this week. However, traders are closely watching for upcoming labor market data and June www.xmserving.commodity trade reports, both of which will provide the basis for the second-quarter GDP data released later this week. Technically, the most recent resistance level of the US dollar index is at 99.20–99.40 range. A breakout above the 99.40 level will push the US dollar index toward the next resistance level 100.40–100.55.
Analysis of gold and crude oil market trends
1) Analysis of gold market trends
In the Asian session on Wednesday, gold hovered around 3330.80. . The rebound came after the gold price plummeted to around $3,302 on Monday (the lowest point since July 9), showing a quick switch in market sentiment. Behind this violent fluctuation is the struggle of multiple key factors: the Federal Reserve's interest rate decision is imminent, the Sino-US trade negotiations have entered a critical stage, and global risk aversion sentiment is fluctuating.
2) Analysis of crude oil market trends
On Wednesday, crude oil trading was around 68.78. Oil prices rose more than 3% on Tuesday as U.S. President Donald Trump put more pressure on Russia over the Ukrainian war and optimism that the trade war between the U.S. and its major trading partners are waning. Supporting oil prices is also the trade agreement between the United States and the EU, which, while imposing a 15% import tariff on most EU goods, avoided a full-scale trade war between the two major allies, as the trade war would affect nearly a third of global trade and bleak the outlook for fuel demand. For investors, the next 24 hours need to be focused on: the Federal Reserve's policy statement's hints about the possibility of a rate cut in September, Powell's press conference's assessment of the economic outlook, and the subsequent progress of Sino-US trade negotiations. In addition, we need to pay attention to the Bank of Japan's interest rate resolution and the Bank of Canada's interest rate resolution, the second quarter GDP series of the United States and the July ADP employment data of the United States. The second quarter GDP data of Germany and the euro zone also need to be paid attention to.
Forex market trading reminder on July 30, 2025
09:30 Australia's second quarter CPI annual rate
09:30 Australia's June weighted CPI-year rate
13:30France's annual GDP annual rate in the second quarter
15:00Swiss' leading indicator for July KOF economy
16:00Germany's second quarter unrevised GDP annual rate in the second quarter
16:00Swiss' July ZEW Investor Confidence Index
17:00Eurozone's second quarter GDP annual rate
17:00Eurozone's July Industrial and Economic Prosperity Index
20:15U.S. ADP employment in July
20:30U.S. real GDP annual rate in the second quarter
20:30U.S. real personal consumption expenditure quarter
20:30 The initial value of the annualized quarterly rate of the core PCE price index in the second quarter
20:30 The U.S. Treasury Department released quarterly refinancing report
21:45 The Bank of Canada released interest rate resolution and monetary policy report
22:00 The monthly rate of the U.S. existing home signing sales index in June
22:30 The week from the U.S. to July 25
22:30 The week from the U.S. to July 25
EIA Cushing crude oil inventories
The next day at 02:00 The next day at 02:00 The Federal Reserve FOMC announced interest rate resolution
The next day at 02:30 The next day at 02:30 The next day at 02:30 The Federal Reserve Chairman Powell held a press conference
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