The global financial markets are experiencing renewed volatility as the Federal Reserve decided to maintain its benchmark interest rate at a high level of 4.5%. This decision comes in response to recent economic data from the United States which indicates an improvement, reinforcing the central bank’s cautious stance on inflation control. This environment is causing investors to remain alert, as a high interest rate typically suppresses liquidity and dampens interest in riskier assets.<\/p>\n
Simultaneously, geopolitical dynamics and trade policies are adding to the uncertainty. Former U.S. President, Donald Trump, announced plans to impose a 15% tariff on imports from South Korea as part of his trade pressure strategy. He also expressed optimism about reaching a trade agreement with China.<\/p>\n
Currently, market participants are focusing on the upcoming release of the U.S. PCE inflation data tonight at 7:30 PM WIB. Expected to increase from the previous period, this data could further solidify expectations for continued monetary tightening and might spur new volatility in the markets.<\/p>\n
Here are the data from Trading Central: Gold<\/strong><\/p>\n Gold prices have managed to rebound<\/em> from the lowest levels seen in recent trading around $3,268, reaching a peak of approximately $3,314 during the European session today (July 31, 2025). This increase is attributed to profit-taking against the U.S. dollar, indirectly supporting the strength of Gold as a safe haven<\/em> asset.<\/p>\n However, the potential for further rebounds appears limited. The Fed’s sustained high interest rates, combined with the anticipation of tonight’s PCE inflation data expected to be higher than before, could lead to renewed strength in the U.S. dollar, putting further pressure on Gold prices.<\/p>\n Oil<\/strong><\/p>\n Oil prices are correcting after a four-day surge, moving lower to $69.34 during the European session. This correction is triggered by an unexpected rise in U.S. crude oil inventories reported by the EIA.<\/p>\n Nonetheless, concerns about supply are resurfacing as President Trump has called for an end to the war in Ukraine through additional tariff pressures. This sentiment could potentially trigger a rise in Oil prices in the near term.<\/p>\n EURUSD<\/strong><\/p>\n Despite a brief rebound to 1.1461 during the European session, EURUSD remains under selling pressure. The weakening of monthly inflation in France, which only increased by 0.2%, along with stagnant unemployment rates, adds to the burden facing the Euro.<\/p>\n Additionally, the U.S. dollar may strengthen again as the Fed maintains high interest rates, and tonight’s inflation data from the U.S. is expected to show positive results. This could further exert downward pressure on EURUSD.<\/p>\n GBPUSD<\/strong><\/p>\n The selling pressure on GBPUSD continues into the early European session today. The currency pair has fallen to a daily low around 1.3209, marking a decline over the past week.<\/p>\n The selling may persist through tonight as the prospects for a stronger U.S. dollar emerge following the Fed’s decision to keep interest rates high and in anticipation of the PCE inflation data, which is expected to yield better results.<\/p>\n USDJPY<\/strong><\/p>\n USDJPY has strengthened to 149.996 during the European session, driven by the U.S. dollar gaining against the Japanese Yen. The Yen weakened after Bank of Japan Governor Kazuo Ueda dampened market expectations for a near-term interest rate hike.<\/p>\n The U.S. dollar’s potential for continued strengthening tonight, as the Fed signals it will not cut interest rates soon, could enhance the chances for further increases in USDJPY.<\/p>\n Nasdaq<\/strong><\/p>\n The Nasdaq index has hit an all-time high during today\u2019s trading (July 31, 2025), reaching 23,844. This surge is fueled by solid earnings reports from tech giants Microsoft and Meta Platforms.<\/p>\n The bullish trend for the Nasdaq remains strong, especially after Microsoft and Meta\u2014both part of the \u201cMagnificent Seven\u201d group\u2014each rose approximately 8% and 11% in pre-market trading following quarterly earnings reports that surpassed analysts’ expectations.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" The global financial markets are experiencing renewed volatility as the Federal Reserve decided to maintain its benchmark interest rate at a high level of 4.5%. This decision comes in response to recent economic data from the United States which indicates an improvement, reinforcing the central bank’s cautious stance on inflation control. This environment is causing […]<\/p>\n","protected":false},"author":4,"featured_media":21041,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5170,142],"tags":[5175,5174,5176,5178,5177,5168],"class_list":["post-79827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-summary","category-news","tag-cls10","tag-eurusd","tag-gbpusd","tag-nq","tag-usdjpy","tag-xauusd"],"yoast_head":"\n
U.S. PCE inflation data at 7:30 PM WIB; forecast<\/em> 2.8% vs previous 2.7%.<\/p>\n