The Fed's interest rate cut appears to have had an impact on gold, with gold trending higher for three consecutive days. However, high volatility could lead to a significant correction.
GBPUSD plummeted to a break of the lower band, which has been at a historical support level since early March 2025. A correction is expected after the sharp decline.
Current scenario: modify stop-loss to lock in profit. Today, we're waiting for the release of US economic data, the ISM services PMI, and NFP, but the US government shutdown could disrupt the data releases.
The USD strengthened when Fed officials stated that interest rate cuts would be conducted cautiously, reducing expectations of a rate cut. XAGUSD dropped afterward, but silver remains a safe-haven asset and a good hedge in the long term.
The USD weakened slightly amid expectations of a Fed interest rate cut later this year. The EURUSD pair attempted to rise again amid a slightly weaker US dollar.
Today, the market is focused on the Fed's interest rate policy, which is expected to see a 25 bps cut. If the actual data matches expectations, it could weaken the USD. Short-term speculation on GBP/USD
