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US dollar index fell, senior Fed officials expressed support for short-term interest rate cuts
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Hello everyone, today XM Foreign Exchange will bring you "[XM Foreign Exchange Decision Analysis]: The US dollar index fell, and senior Federal Reserve officials expressed their support for a short-term interest rate cut." Hope it will be helpful to you! The original content is as follows:
On August 7, early trading in the Asian market on Thursday, Beijing time, the US dollar index hovered around 98.25. On Wednesday, the dollar index fell, dragged down by a speech by Fed officials, and finally closed down 0.56% to 98.17. U.S. Treasury yields rose and fell mixed, with the benchmark 10-year U.S. Treasury yields closed at 4.232%, and the 2-year U.S. Treasury yields closed at 3.72%. As investors took profit after the gold price hit a nearly two-week high in the previous trading day, spot gold fell back and stopped four consecutive gains, falling below the $3360 mark during the session, and finally closed down 0.35%, closing at $3368.97/ounce, hitting a high in the past two weeks; spot silver was basically flat, and finally closed up 0.05% to $37.809/ounce. International crude oil fell for the fifth consecutive trading day as Trump's eouu.cnments on U.S.-Russia talks sparked uncertainty over the U.S.-imposed new sanctions on Russia. WTI crude oil fell below the $64 mark and finally closed down 1.48% to $63.6 per barrel, a two-month low; Brent crude oil finally closed down 1.36% to $66.43 per barrel.
Analysis of major currencies
Dollar Index: As of press time, the US dollar index hovered at US$98.25. Market sentiment is affected by a eouu.cnbination of multiple factors, including expectations of progress in the Fed’s nomination, Trump’s recent remarks about tariffs, and weak U.S. economic data. The US dollar index shows signs of oversold technology, but fundamental uncertainty still dominates market sentiment. This article will eouu.cnbine the latest market trends to deeply analyze the current trend of the US dollar index from the two dimensions of fundamentals and technical aspects, and make an outlook on future trends. Technically, the most recent support level of the US dollar index is in the range of 98.00–98.20. A break below the 98.00 level will push the U.S. dollar index to the next support level 97.10–97.30.
Analysis of gold and crude oil market trends
1) Analysis of gold market trends
On Thursday, gold hovered near 3372.2. The market is evaluating the latest developments in geopolitics and tariffs. On the one hand, Trump said he "probably" will meet with Russian President Putin in the near future to discuss the Russian-Ukrainian issue, which may weaken the attractiveness of gold as a safe-haven asset. On the other hand, Trump has doubled tariffs on Indian goods to 50%, a move that could exacerbate U.S.-India trade tensions. "The next few hours and days may play a key role in shaping the dynamics of the gold market."
2) Analysis of crude oil market trends
On Thursday, crude oil trading around 63.85. The decline in U.S. crude oil inventories last week indicated demand remained strong, which could help limit WTI losses. The U.S. Energy Information Administration (EIA) crude oil inventories reported that U.S. crude oil inventories fell by 3.029 million barrels in the week ended August 1, eouu.cnpared with an increase of 7.698 million barrels the previous week. Market consensus estimates inventory will drop by 1.1 million barrels.
Forex market trading reminder on August 7, 2025
19:00Bank of England announces interest rate resolution and meeting minutes
19:30Bank of England Governor Bailey holds a press conference
20:30 Number of initial unemployment claims in the week from the United States to August 2
22:00 US wholesale sales monthly rate in June
22:00 US Federal Reserve Boss Tik participated in the fireside conversation online
22:30 EIA natural gas inventories in the week from the United States to August 1
23:00 US New York Fed's 1-year inflation expectations in July
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