Attention may turn to the downside potential of the U.S. dollar, which fell following comments suggesting the FOMC may cut rates next month

Attention may turn to the downside potential of the U.S. dollar, which fell following comments suggesting the FOMC may cut rates next month

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 while leaving the door open for a rate cut at the next FOMC meeting.The EUR/USD pair rose from 1.1583 to 1.1742. On the hourly chart, prices surged from the -2σ to the +3σ Bollinger Bands. On the 4-hour chart, the RSI soared from 30 to 65. On the daily chart, prices 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 on the hourly Bollinger Bands and dropped just below the 200-period EMA.On the 4-hour chart, the 200-SMA has acted as a resistance level, triggering a pullback. On the daily chart, the pair attempted to move above the 20-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.

Past Market Reports

1. 17.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

2. 16.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

3. 15.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

4. 14.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

5. 13.04.2026New

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

6. 10.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

7. 09.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

8. 08.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

9. 07.04.2026

   Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran

10. 06.04.2026

    Investors should be wary of sudden spikes in volatility while major markets are closed