Asset Summary – Monday, 1 September
GBPUSD’s trajectory appears mixed. While potential tax increases proposed by the Chancellor and concerns over fiscal policy are weighing on the pound, creating downward pressure, stronger-than-expected UK economic data and a shift in market expectations regarding Bank of England interest rate cuts are providing support. The reduced likelihood of near-term rate cuts, coupled with robust business activity, particularly in the services sector, suggests underlying strength for the pound, potentially offsetting some of the negative impact from fiscal worries. The current market sentiment points toward a complex interplay of factors influencing the currency pair.
EURUSD is demonstrating positive momentum, having experienced an increase in value to 1.1719 on the specified date. This represents a noteworthy intraday gain, suggesting bullish sentiment in the market. The sustained appreciation over both the past month and the preceding year indicates a longer-term trend of Euro strength against the US Dollar. Traders may interpret this data as a signal to consider long positions or to reassess existing short positions on the EURUSD pair.
DOW JONES experienced a decline on Friday, shedding 92 points or 0.2%, contributing to a broader market retreat influenced by concerns over persistent inflation as indicated by the Core PCE data. While losses in tech stocks and specific company challenges like Caterpillar’s tariff concerns weighed on the index, it’s noteworthy that the Dow still managed to close out the month with a 3% gain, marking its fourth consecutive month of positive performance. The upcoming Labor Day holiday will result in market closure on Monday, giving investors a pause to consider the implications of the latest economic data and sector-specific pressures on future trading activity.
FTSE 100 experienced a slight dip in value, closing at 9187 points with a 0.32% decrease on August 29, 2025. While this single day saw a minor setback, the index has demonstrated positive growth recently. Examining the past month, the FTSE 100 has risen by 0.55%, and comparing it to the previous year, the index shows a substantial increase of 9.68%, suggesting overall positive performance for the leading UK companies represented within the index. This performance is reflected in the trading of CFDs linked to the benchmark index, showing a strong market interest from traders.
GOLD is experiencing upward price pressure, driven by a combination of factors. The uncertainty surrounding tariffs, particularly after a ruling against President Trump’s implementations, is creating economic anxiety that often benefits gold as a safe-haven asset. Simultaneously, increasing expectations for a US interest-rate cut, fueled by recent inflation data and dovish commentary from Fed officials like Mary Daly, are further bolstering gold’s appeal, as lower interest rates typically reduce the opportunity cost of holding the non-yielding metal. Traders are closely watching upcoming US labor market data, as these figures could significantly influence the Federal Reserve’s decision-making regarding the magnitude of any potential rate cut, thereby impacting gold’s near-term trajectory.