Asset Summary – Monday, 8 September
GBPUSD experienced upward pressure as the dollar weakened following US jobs data that suggested a cooling labor market, increasing expectations of Federal Reserve rate cuts. The market is anticipating significant easing by the Fed in the coming year. However, despite this boost, the pound is facing headwinds. Concerns about fiscal policy and the upcoming Autumn Budget are creating uncertainty in the UK. Furthermore, comments from the Bank of England Governor indicating doubt about the timing of UK rate cuts are adding to the downward pressure. These conflicting factors suggest a potentially volatile period for the currency pair, with the strength from US data potentially offset by domestic economic anxieties in the UK.
EURUSD is experiencing upward pressure as dollar weakness intensifies following disappointing US jobs data, solidifying expectations for Federal Reserve interest rate cuts. This outlook contrasts with the Eurozone, where the European Central Bank is anticipated to hold rates steady amidst a stable economic environment, with inflation near its target. However, fiscal concerns in Europe, driven by potential increases in defense spending and German infrastructure projects, introduce some uncertainty. The upcoming French confidence vote adds a layer of political risk that could influence the currency pair.
DOW JONES’s short-term direction is uncertain, influenced heavily by upcoming inflation reports. Recent losses, despite initially reaching record highs, reflect investor anxiety following weaker-than-expected jobs data, suggesting potential economic slowdown. The anticipation of these inflation figures is creating volatility, as traders are adjusting their expectations regarding the Federal Reserve’s next interest rate decision. A stronger-than-expected inflation reading could lead to further declines, particularly if the market anticipates a more aggressive rate hike, while weaker inflation could provide some support.
FTSE 100 experienced a slight dip, closing at 9208 points, which represents a minimal decrease of 0.09% on September 5, 2025. Looking at recent performance, the index demonstrates an upward trend, having gained 0.48% over the preceding month. Furthermore, when viewed year-over-year, the FTSE 100 exhibits substantial growth, showing an increase of 12.55%, suggesting positive overall market sentiment in the United Kingdom.
GOLD is exhibiting bullish signals, supported by a confluence of factors. The likelihood of a Federal Reserve rate cut, spurred by weaker-than-anticipated US employment data, is placing downward pressure on the dollar, indirectly boosting gold’s appeal as a safe haven and alternative investment. Moreover, consistent purchasing by central banks, particularly the People’s Bank of China, reinforces demand and upward price momentum. Ongoing global economic and political instability further strengthens the investment case for gold, contributing to its substantial year-to-date gains and suggesting potential for continued appreciation. Investors are now closely watching upcoming US inflation data for further cues on the Federal Reserve’s monetary policy stance, which will likely influence gold’s near-term trajectory.