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The dollar missed the 99 mark, and Fed Governor Milan called for a quick interest rate cut.
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Hello everyone, today XM Forex will bring you "[XM Forex Platform]: The US dollar missed the 99 mark, and Fed Governor Milan called for a rapid interest rate cut." Hope this helps you! The original content is as follows:
On October 16, in early Asian trading on Thursday, Beijing time, the U.S. dollar index was hovering around 98.49. On Wednesday, the U.S. dollar index fell for the second consecutive trading day. After falling below the 99 mark, it continued to decline and finally closed down 0.4% at 98.664, a new weekly low. U.S. bond yields consolidated at low levels, with the benchmark 10-year U.S. bond yield finally closing at 4.0335%, and the 2-year U.S. bond yield, which is sensitive to the Federal Reserve's policy interest rate, closed at 3.51%. Driven by expectations of an interest rate cut by the Federal Reserve and geopolitical tensions, spot gold continued its record-breaking rally, breaking through $4,200, continuing to hit new highs. It finally closed up 1.6% at $4,208.28 per ounce, a cumulative gain of nearly $200 this week. Spot silver rebounded strongly, approaching historical highs again, and finally closed up 3.11% at $52.99 per ounce. International crude oil is still hovering near five-month lows amid concerns about oversupply. WTI crude oil fluctuated near the 58 mark and finally closed up 0.05% at US$58.26/barrel; Brent crude oil finally closed up 0.26% at US$62.23/barrel.
Analysis of major currency trends
U.S. dollar index: As of press time, the U.S. dollar is hovering around 98.49. The Federal Reserve's Beige Book shows that U.S. economic activity has barely changed recently, and employment is basically stable. However, there are signs of weakness such as increased layoffs and low- and middle-income households cutting spending. The U.S. Dollar Index (DXY) continued its downward trend and fell below the key Fibonacci support level of 98.714. There are two reasons behind this: First, traders' expectations for the Federal Reserve to cut interest rates have continued to strengthen, and second, the rebound in global risk sentiment has boosted demand for high-risk currencies. Technically, currently the United StatesThe yuan index is testing the key retracement level, and there is no immediate support before the 50-day moving average of 98.025. Market sentiment has clearly turned negative. Unless the dollar can find support at the 50-day moving average and rebound, the possibility of a further pullback to 97.412 remains. Especially in the context of continued consolidation of interest rate cut expectations and high risk appetite, this correction trend is more likely to form.
Gold and crude oil market trend analysis
1) Gold market trend analysis
On Thursday, gold hovered around 4,223.10. Gold’s feat of breaking through $4,200 was due to the www.xmmen.combination of interest rate cut expectations, geopolitical tensions and economic weakness. This risk aversion storm not only reshaped the global financial landscape, but also provided investors with valuable opportunities. With the Federal Reserve's possible continuous interest rate cuts and the continuation of international trade frictions, gold's march towards $5,000 will become more determined. However, the market also needs to be wary of short-term overheating risks - if there are signs of easing trade frictions, or the Federal Reserve releases a hawkish signal, gold prices may face correction pressure. But in the long term, against the backdrop of spreading global economic uncertainty, gold's "safe haven" role remains irreplaceable.
2) Crude oil market trend analysis
On Thursday’s Asian session, crude oil was trading around 58.28. Oil price gains were capped by escalating trade tensions and the International Energy Agency (IEA) forecasting a supply glut in 2026. Many officials from the Federal Reserve spoke during the day, and Mann, the monetary policy member of the Bank of England, gave a speech.
Foreign exchange market trading reminder on October 16, 2025
14:00 UK monthly GDP rate for the three months in August
14:00 UK www.xmmen.commodity trade after seasonally adjusted AugustAccount
14:00 UK industrial and manufacturing output monthly rate in August
17:00 Euro zone August seasonally adjusted trade balance
20:30 US initial jobless claims for the week to October 11
20:30 US September retail sales monthly rate
20:30 US September PPI annual rate and monthly rate
2 0:30 US October Philadelphia Fed Manufacturing Index
21:00 Federal Reserve Governor Waller speaks
21:00 Federal Reserve Governor Barr speaks
21:00 Federal Reserve Governor Milan speaks
22:00 US October NAHB Housing Market Index
22:00 US August www.xmmen.commercial Inventory Month Rate
22:00 Fed Governor Bowman delivers an online speech
22:30 EIA natural gas inventories in the United States for the week to October 10
00:00 EIA crude oil inventories from the United States for the week to October 10 the next day
00:00 EIA Cushing crude oil inventories from the United States for the week from October 10 the next day
00 the next day: 00 EIA Strategic Petroleum Reserve Inventory from the United States to the week of October 10
At 01:30 the next day, Bank of Canada Governor MacCallum delivered a speech
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