Asset Summary – Monday, 18 August
GBPUSD is exhibiting upward momentum driven by unexpectedly positive economic data from the UK. Stronger-than-anticipated GDP figures for the second quarter and the month of June have reduced the likelihood of further interest rate cuts by the Bank of England in the near term. Concurrently, a weaker US dollar, influenced by recent inflation data that increased speculation about a potential Federal Reserve rate cut in September, is further contributing to the pound’s relative strength against the dollar. This combination of factors suggests a bullish outlook for the currency pair.
EURUSD’s direction is influenced by several competing factors. The meeting between the US and Russian presidents regarding the Ukraine conflict, without Ukrainian participation, introduces uncertainty that could impact the euro. Growing expectations for US Federal Reserve rate cuts tend to weaken the dollar, potentially boosting the euro. However, the possibility of another ECB rate cut, even after ending its easing cycle, could offset that gain. Eurozone economic growth is modest and inflation is stable, providing limited support. Furthermore, the looming threat of US tariffs on European goods poses a significant risk to the euro’s strength, potentially offsetting any positive impact from US monetary policy.
DOW JONES is positioned to potentially continue its upward trajectory, buoyed by positive sentiment surrounding anticipated Federal Reserve rate cuts and recent record highs achieved by major market indexes. This optimistic outlook is tempered by the need for investors to closely monitor upcoming economic data and any signals regarding monetary policy emerging from the Federal Reserve’s Jackson Hole symposium. Significant corporate earnings reports from major retailers will also likely influence market movements. Furthermore, geopolitical developments, particularly the US President’s meeting with the Ukrainian President, could introduce volatility and affect investor confidence.
FTSE 100 experienced a slight dip, closing at 9139 points with a 0.42% decrease on August 15, 2025. Despite this recent setback, the index demonstrates positive performance when viewed over a longer period. It has seen growth of 2.38% over the last month, and a more substantial increase of 9.96% compared to its value a year prior, based on CFD trading data. This suggests overall upward momentum, even with the daily fluctuations.
GOLD is experiencing upward price pressure as investors react to geopolitical developments and anticipate potential shifts in US monetary policy. Uncertainty surrounding the outcome of the meeting between President Trump, President Zelenskiy, and key European leaders regarding the Russia-Ukraine conflict is prompting some investors to seek safe-haven assets. The lack of a concrete ceasefire agreement from the Trump-Putin summit further contributes to this uncertainty. Simultaneously, expectations of a future interest rate cut by the Federal Reserve, spurred by upcoming remarks from Jerome Powell and the release of the Fed meeting minutes, are also boosting gold’s appeal, as lower interest rates typically make non-yielding assets like gold more attractive.