Attention is turning to whether the U.S. dollar will continue to decline following comments from the FOMC last month suggesting a willingness to cut interest rates

Attention is turning to whether the U.S. dollar will continue to decline following comments from the FOMC last month suggesting a willingness to cut interest rates

25.08.2025

Last weekend, the U.S. dollar hit a sharp low after Federal Reserve Chair Powell, speaking at the Jackson Hole Symposium on the 22nd, acknowledged the threat of inflation but left the door open for a rate cut at the next FOMC meeting.The EUR/USD pair rose from 1.1583 to 1.1742. It surged from the -2σ to the +3σ levels on the hourly Bollinger Bands. On the 4-hour chart, the RSI soared from 30 to 65. On the daily chart, it broke through this month’s high, negating the triple top formation.

Among European currencies, the Swiss franc fell against the yen. The CHF/JPY pair dropped from 184.014 to 183.003. It fell from the +3σ to the -2σ levels of the hourly Bollinger Bands and dropped to just below the 200 EMA.On the 4-hour chart, the 200-period simple moving average (SMA) is acting as a resistance level, causing a pullback. On the daily chart, the pair attempted to move above the 20-period moving average (MA) but was rejected and has since retreated back to the 20-MA.

Today’s economic indicators include New Zealand retail sales at 7:45 a.m., Japan’s Economic Trends Survey at 2:00 p.m., Germany’s IFO Business Climate Index at 5:00 p.m., U.S. new home sales at 11:00 p.m., the U.S. Dallas Fed Manufacturing Activity Index at 11:30 p.m., and remarks by Logan, President of the Dallas Fed, at 2:15 a.m.We will be watching for further downside potential in the U.S. dollar, which fell following comments from the FOMC last month indicating a willingness to cut rates.