Gold remains near a record high. How long will its rally last? Find the full breakdown below.
- Events. Gold remains around $4,340 per ounce, supported by U.S. rate cut expectations and the ongoing U.S. government shutdown.
- Background. Paused government activity in the U.S. continues to fuel uncertainty. Investors are also watching U.S.–China trade talks closely as they will affect the market sentiment.
- Possible outcome. Traders await the delayed September CPI report, which is critical for Federal Reserve rate decisions next week. If the CPI report shows higher-than-expected inflation, it could strengthen the U.S. dollar and pressure gold.
Wait for Friday’s report—a softer inflation could keep supported. Watch for changes in U.S. dollar strength based on economic data and trade developments.
Euro Struggles as Dollar Gains on Shutdown Hopes. What Does This Mean for Traders?
EURUSD continued its two-day decline on Tuesday, driven by a stronger dollar. With the U.S. government shutdown potentially ending soon, could it be the end for the euro’s gains? Find out in our analysis.
- Events. EURUSD fell to 1.1630 amid hopes that the U.S. government shutdown will resolve soon.
- Background. The U.S. dollar strengthened from expectations that the shutdown will end this week. Traders are also watching for U.S. inflation figures on Friday, as these could influence the rate cut decision next week. Meanwhile, the European Central Bank has maintained a cautious stance, with no major changes to policy.
- Possible outcome. If U.S. inflation comes out stronger than expected, it could boost the U.S. dollar, putting further pressure on EURUSD.
Watch for the U.S. inflation report on Friday. Also, any positive news about U.S.–China trade talks could weaken the dollar, providing some support for the euro, so keep abreast of the news.
Australian Dollar Drops Despite $8.5 Billion Deal. Here’s What Happened
The Australian dollar fell despite a significant agreement between the U.S. and Australia. Learn what happened in our analysts’ breakdown below.
- Events. The U.S. and Australia signed a $8.5 billion deal on Monday to secure access to Australia’s rare earth resources. However, the AUD still got under pressure.
- Background. The deal, signed by President Trump and Australian Prime Minister Albanese, aims to counter China’s tightening export controls on critical minerals. The U.S. and Australia will invest heavily in mining and processing projects.
- Possible outcome. Trump hinted at a potential easing of U.S.–China trade tensions, which could impact China’s economic conditions. However, given Australia’s close trade ties with China, this move could weaken the AUD as well.
Watch for news on U.S.–China trade relations as AUD may remain sensitive to China’s economic health.
