Asset Summary – Monday, 15 September
GBPUSD faces downward pressure given recent economic data indicating a sluggish start to the third quarter for the UK economy. Stagnant GDP and a surprise drop in industrial production raise concerns about the impact of tax increases and tariffs on economic activity. Further fiscal tightening expected in November adds to the negative sentiment. While the Bank of England is unlikely to adjust interest rates in the immediate term, the possibility of a rate cut at the November meeting, coupled with looming budget announcements, contributes to uncertainty surrounding the pound, potentially weakening it against the US dollar.
EURUSD experienced a slight decline in value on September 15, 2025, closing at 1.1722, which represents a decrease of 0.09% compared to the prior trading day. Examining a broader timeframe reveals a more positive trend, as the currency pair has appreciated by 0.46% over the preceding month. Furthermore, when considering a longer-term perspective, the EURUSD has exhibited substantial gains, increasing by 5.33% throughout the past year, suggesting an overall upward trend despite the recent minor dip.
DOW JONES is positioned to potentially maintain or slightly increase its value, influenced by expectations surrounding the upcoming Federal Reserve meeting. The high probability of a 25 basis point rate cut is already largely priced in, suggesting limited immediate impact. However, any surprise move, particularly a larger cut, could trigger a more significant rally. Stephen Miran’s potential appointment to the Fed could also introduce uncertainty. Given the Dow’s recent gains and hitting record highs last week, combined with ongoing AI optimism despite broader economic concerns, the index seems to have a positive but cautious outlook in the short term.
FTSE 100 experienced a slight dip in value, closing at 9283 points with a 0.15% decrease in a recent trading session. However, the broader trend suggests positive performance as the index has shown gains over the past month and significantly increased compared to its value a year prior. Based on contract for difference trading activity which mirrors this benchmark, this overall upward trajectory indicates growing investor confidence and potential for continued appreciation, though short-term fluctuations should be expected.
GOLD’s price is being heavily influenced by anticipation surrounding the upcoming Federal Reserve meeting. The expectation of a potential interest rate cut is supporting higher gold prices, as lower rates typically weaken the dollar and make gold more attractive. Key economic data releases regarding retail sales and industrial production will further shape expectations for future rate cuts and, consequently, gold’s direction. Political uncertainty, stemming from the Trump administration’s actions towards the Federal Reserve and the ongoing US-China trade negotiations, adds another layer of complexity, potentially increasing demand for gold as a safe-haven asset.