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US dollar index lowers under pressure, Milan "probably" taking office before the Fed meeting in September
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Market Analysis]: The US dollar index is under pressure and lower, and Milan is "very likely" to take office before the Federal Reserve meeting in September." Hope it will be helpful to you! The original content is as follows:
On September 2, early trading in the Asian market on Tuesday, Beijing time, the US dollar index hovered around 98.14. On Monday, the dollar index fell under pressure and finally closed down 0.17% to 97.68 as markets stakes on the Fed's interest rate cuts were rising and concerns about its independence increased. Spot gold rose for the fifth consecutive trading day, and once approached the $3490 mark during the session, hitting a new high since April 22, and finally closed up 0.82%, closing at $3476.39/ounce; spot silver rose even harder, breaking through the $40 mark for the first time since September 2011, and finally closed up 2.36%, at $40.68/ounce. As the situation in Russia and Ukraine tightens again, traders are closely watching Russia's energy supply, and international crude oil rises. WTI crude oil finally closed up 2.24% at $65/barrel; Brent crude oil finally closed up 1.04% at $68.03/barrel.
Analysis of major currencies
Dollar Index: As of press time, the US dollar index hovered at US$97.72. Currently, the market expects that the probability of the Federal Reserve cutting interest rates by 25 basis points this month is 90%, and the cumulative interest rate cut by 2026 will reach 100 basis points. The downside risks faced by the US dollar continue to become the focus of the market. This week's economic calendar contains a number of important data, including Job Vacancy and Labor Movement Survey (JOLTS), Automated Data Processing www.xmniubi.company (ADP) private sector employment data, and the highly-watched non-farm employment report on Friday. Analysts believe that if the labor market continues to be weak, it will support the Fed's dovish stance. Societe Generale ClausBard said that if the recent economic weakness proves to be true, the Fed may take a more radical policy response. Technically, if the US dollar index successfully closes below the 97.50 level, it will move towards its nearest support level, which is in the 97.10–97.30 range.
Analysis of gold and crude oil market trends
1) Analysis of gold market trends
On Tuesday, gold hovered around 3480.11. Gold rose above $3,450 and could challenge the $3,500 record on Monday as the U.S. market remained calm during Labor Day. Concerns about Fed independence and ongoing uncertainty in the trade war have kept gold down and increased capital flowing to the precious metals industry.
2) Analysis of crude oil market trends
On Tuesday, crude oil trading around 64.47. WTI fell slightly amid concerns that US President Donald Trump will double the existing 25% tariff on India's exports. Traders are ready for weekly crude oil inventories to be announced late Tuesday.
Forex market trading reminder on September 2, 2025
①17:00Eurozone August CPI annual rate initial value
②17:00Eurozone August CPI monthly rate initial value
③21:45Eurozone August S&P Global Manufacturing PMI final value
④22:00Eurozone August ISM Manufacturing PMI
⑤22:00Eurozone July construction expenditure monthly rate
The above content is about "[XM Foreign Exchange Market Analysis]: The US dollar index is under pressure and lower, and Milan "is likely" to take office before the Federal Reserve meeting in September" is carefully www.xmniubi.compiled and edited by the XM Foreign Exchange editor. I hope it will be helpful to your transactions! Thanks for the support!
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