The pressure on the United States dollar intensified at the start of the European trading session on Tuesday (September 16, 2025). The reason behind this is the confirmation from the US Senate this morning regarding Trump’s appointment of Stephen Miran to the Board of Governors at the Fed, where he will participate in the monetary policy meeting scheduled for this week.
Miran, who serves as Trump’s Chair of the Economic Advisory Council, will retain his position there but will take an unpaid leave in order to take on his new role. He replaces Adriana Kugler, who unexpectedly resigned last August.
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Miran’s entry into the Fed is perceived as an attempt to influence the board towards a more aggressive interest rate cut. This sentiment is likely to impact market movements during tonight’s trading, alongside the release of US economic data. Here’s the data from Trading Central:
- US Retail Sales (year-on-year/September) at 19:30 WIB; forecast 3.2% vs. previous 3.9%
GOLD
The price of Gold (XAUUSD) surged over US$20 or 200 pips to US$3,698.70 per troy ounce as the European session commenced. This level marks an all-time high, nearing the US$3,700 per troy ounce milestone.
Gold’s momentum remains unyielding due to expectations of the Fed’s interest rate cuts. Currently, market participants anticipate a 25 basis point decrease to a range of 4%-4.25%.
Additionally, speculation about a possible 50 basis point cut has gained traction with Miran’s induction into the Fed’s elite circle. This sentiment could further bolster Gold prices tonight, especially if the retail sales data falls short of the forecast.
OIL
Oil prices (CLS10) exhibited volatility within a range of US$62.88 to US$63.54 per barrel as trading began in Europe. Oil has also benefited from the positive sentiment surrounding expected interest rate cuts from the Fed.
As interest rates are lowered, the US economy is likely to gain momentum, potentially increasing demand for Oil.
EURUSD
The EURUSD pair climbed to 1.18182, reaching the highest level in the past 2.5 months. Compared to Monday’s trading close, EURUSD rose by nearly 600 points (60 pips).
This positive sentiment for EURUSD stems from the German consumer sentiment report this month, which showed a figure of 37.3, significantly above the forecast of 26 and the previous month’s 34.7.
On the other hand, the US dollar is under pressure, meaning EURUSD could receive additional positive sentiment if tonight’s retail sales data falls below the forecast.
GBPUSD
With strong data from the UK labor market, GBPUSD saw an increase of 535 points (53.5 pips) to 1.36456 at the beginning of the European trading session, marking its highest level in two months.
A robust labor market raises the likelihood that the Bank of England (BoE) will keep interest rates on hold for a longer period, which positively affects GBPUSD, especially given the pressure on the US dollar due to the anticipated Fed rate cuts this week.
USDJPY
The significant downward pressure on the US dollar is also evident in the USDJPY pair, which dropped by 651 points (65.1 pips) to 146.687.
The downward trend for USDJPY may worsen if tonight’s retail sales data indicates a drop below the forecast of 3.2%, suggesting weakening consumer spending in the US.
NASDAQ
Similar to Gold, the Nasdaq index surged and reached an all-time high of 24,403 at the beginning of the European trading session. Anticipations of an interest rate cut by the Fed have propelled this increase in US stock indices.
US President Donald Trump’s positive remarks regarding US-China trade negotiations have further boosted Nasdaq’s momentum. This sentiment is likely to influence Nasdaq’s movements during tonight’s trading.
