The US dollar experienced renewed pressure in trading on Monday (September 15, 2025) following comments from President Donald Trump regarding the Federal Reserve’s interest rates.
The world’s most influential central bank is set to announce its monetary policy early Thursday, with market participants anticipating a cut of 25 basis points (0.25%). However, Trump predicted a more significant rate cut from the Fed this week.
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“I believe there will be a substantial reduction in interest rates,” Trump stated as reported by Bloomberg.
If a large-scale cut occurs as Trump suggests, it would mean that the Fed could lower rates by at least 50 basis points (0.5%) this week.
This statement is likely to continue influencing market movements during tonight’s trading, along with the release of US economic data. Here are the details from Trading Central:
- US Manufacturing Index (September) at 7:30 PM WIB; forecast 10 versus previous 11.9
GOLD
The price of Gold (XAUUSD) displayed volatility near the daily peak level of $3,645 per troy ounce at the start of European session trading.
Gold dipped to $3,626 per troy ounce earlier this morning before recovering in response to Trump’s remarks. Should the Fed indeed cut rates by 50 basis points, the implications would be substantial. Market perceptions could view the Fed as lagging in rate reductions amidst a significant slowdown in the US economy. This scenario would likely provide a positive sentiment boost to Gold.
The positive sentiment could strengthen further if US economic data released this evening falls short of expectations.
OIL
The price of Oil (CLS10) rose to $63.22 per barrel at the beginning of European session trading before retracting. Oil also responded to Trump’s comments, indicating that if the Fed cuts rates by 50 basis points, the US economy might accelerate, potentially boosting Oil demand.
This sentiment is expected to continue to influence Oil movements during tonight’s trading.
EURUSD
As noted earlier, Trump’s statements have put pressure on the US dollar, causing EURUSD to rise to 1.17544. Compared to Friday’s trading close, EURUSD increased by 192 points (19.2 pip).
The pressure on the US dollar could increase if the US economic data released tonight is weaker than projected. This suggests that the sentiment for EURUSD could become increasingly positive.
GBPUSD
GBPUSD increased by 536 points (53.6 pip) to 1.36110 at the beginning of European session trading. GBPUSD has been rising as market forecasts indicate that the Fed may cut interest rates this week, with the possibility of a significant reduction as highlighted by Trump.
On the other hand, the Bank of England is expected to maintain interest rates this week, providing GBPUSD with positive sentiment that may continue to impact its movements this evening.
USDJPY
USDJPY dropped to 147.245 at the start of the European session after reaching a high of 147.757. The reversal in USDJPY indicates increasing pressure on the US dollar following Trump’s statements.
The pressure may intensify if the Manufacturing Index from New York is released below the forecasted figure of 10, according to Trading Central.
Nasdaq
Nasdaq is trading close to its all-time high of 24,158 at the start of the European session, buoyed by positive sentiment regarding the Fed’s anticipated rate cut.
The release of US data tonight has the potential to add further positive sentiment, potentially breaking the record again if the figures are weaker than expected. This scenario would reinforce expectations of aggressive rate cuts by the Fed.
