Market Watch: The Week Ahead

The dollar held mostly flat Friday after softer-than-expected inflation data reinforced Fed rate cut expectations, while all eyes turn to next week's Trump-Xi meeting. Here's where key assets stand. USD: Modest Weekly Gain Despite Soft CPI The dollar index fell 0.021% to 98.934 Friday but remained on track for a modest weekly gain. Consumer prices rose 0.3% in September versus the 0.4% expected, with annual inflation at 3.0% against forecasts of 3.1%. "The headline was a bit softer than expe

The dollar held mostly flat Friday after softer-than-expected inflation data reinforced Fed rate cut expectations, while all eyes turn to next week's Trump-Xi meeting. Here's where key assets stand. USD: Modest Weekly Gain Despite Soft CPI The dollar index fell 0.021% to 98.934 Friday but remained on track for a modest weekly gain. Consumer prices rose 0.3% in September versus the 0.4% expected, with annual inflation at 3.0% against forecasts of 3.1%. "The headline was a bit softer than expected," notes Marc Chandler at Bannockburn Capital Markets. "The dollar was sold on the news, even though the market had nearly 100% confidence before the report that the Fed would cut rates, not only next week, but in December." The CPI report was published despite the government shutdown's economic data blackout, giving markets crucial visibility into inflation trends. Stocks loved the news, with all three major U.S. indexes posting record closing highs. EUR: Faster Growth Than Expected The euro rose 0.06% to $1.163 Friday as business activity in the euro zone grew faster than expected in October, led by services. The EURO is trading in recovery mode after having a huge drop to the downside. Price managed a short-term retracement to 1.16330 before closing last week. Expectations are that price could make a buy move toward 1.1700 in the coming week as the single currency benefits from improving economic data and dollar softness. GBP: Short-Term Move Up Sterling fell 0.15% to $1.33 Friday despite stronger-than-expected retail sales boosted by online gold jewelry demand. The POUND closed out the week with a short-term move to the upside, although expectations of price reaching 1.32800 remain before a rally could possibly be seen. The pound was down about 1% for the week after soft inflation data had investors adding to expectations for another BoE rate cut this year, creating near-term headwinds. GBPJPY: Ripe for Bullish Move The pound-yen rallied through last week and, although making a short pull, has maintained its bias above the 200.00 level, making it ripe for a bullish move in the coming week. This technical setup looks promising for bulls as the cross consolidates recent gains above key support. The yen weakened to a two-week low at 152.85 per dollar despite data showing Japan's core consumer prices stayed above the BoJ's 2% target. New Prime Minister Sanae Takaichi is preparing an economic stimulus package likely to exceed last year's $92 billion. As a widely viewed fiscal and monetary dove, Takaichi's policies are weighing on the yen despite inflation keeping alive expectations of a near-term rate hike. New U.S. sanctions on Russian oil suppliers also pushed up oil prices, pressuring currencies tied to oil imports like the yen. GOLD: Consolidating After First Major Drop Gold fell 0.57% to $4,101.29 an ounce Friday. Gold took its first significant drop after months of rally, making a move into the lower $4,000 level. Price has since been in short consolidation, with the chance of continuation if bias remains strong to the upside. The precious metal's pullback appears healthy after such an extended rally, but underlying support from Fed easing expectations remains intact. BITCOIN: Above $110K But Mixed Bias Bitcoin finally traded above the $110,000 level, but with chances of a bullish run less than 50%, this could be a short-term rally before price makes another play to the downside. For now, bias remains mixed as the cryptocurrency consolidates in this elevated range. The lack of conviction suggests traders are cautious about chasing prices higher at these levels. Week Ahead: Trump-Xi Meeting "I think expectations are quite high for the Trump-Xi meeting, with the upside risk of a significant de-escalation following the face-to-face meeting," says Ben Bennett at L&G Asset Management. The proposed South Korea summit has spurred hopes for resolution to the on-again-off-again trade war. Will Trump and Xi deliver a breakthrough, or will high expectations set markets up for disappointment? ATTENTION: Triangle Traders — Your Tool Has Arrived” We built the tool that traders have been begging for. TriSignal Scanner draws the pattern, confirms the breakout, and sends you Entry → TP → SL on autopilot. It JUST launched — and this launch discount won’t ever be repeated. Get in now while everyone else is still asking, “Where do I get it?” Kind Regards, FindBetterTrades Trading Strategy Guides © 2025 – Unsubscribe