Created
: 2025.08.25
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Forex Today: US Dollar stabilizes after Powell-inspired selloff
World FX news
Breaking news
Forex Today: US Dollar stabilizes after Powell-inspired selloff
New
2025.08.25 16:32
2025.08.25 16:32
2025.08.25 16:32
Here is what you need to know on Monday, August 25:
The US Dollar (USD) holds its ground early Monday but finds it difficult to gather recovery momentum following the intense selloff seen in the American session on Friday. Later in the day, Chicago Fed National Activity Index and New Home Sales data for July will be featured in the US economic calendar. Additionally, the Federal Reserve Bank of Dallas will publish the Texas Manufacturing Survey for August.
While delivering a speech on "Economic Outlook and Framework Review" at the annual Jackson Hole Economic Symposium on Friday, Fed Chair Jerome Powell said that they will adopt a new policy framework of flexible inflation targeting and eliminate 'makeup' strategy for inflation. Powell acknowledged that downside risks to the labor market were rising, while noting that it would be reasonable to expect that inflation effects of tariffs will be short-lived. These comments triggered a USD selloff heading into the weekend and the USD Index fell nearly 1% on the day, erasing all of its weekly gains in the process. In the meantime, Wall Street's main indexes rose more than 1% on Friday. US stock index futures were last seen losing between 0.1% and 0.2%.
EUR/USD rose sharply on Friday and closed the week marginally higher. The pair stays in a consolidation phase above 1.1700 in the European morning on Monday. IFO - Current Assessment and Business Climate data from Germany will be watched closely by market participants.
GBP/USD gained more than 0.8% on Friday and snapped a four-day losing streak. The pair stays relatively quiet and fluctuates above 1.3500 in the European session.
USD/JPY corrects higher and trades above 147.00 after losing about 1% on Friday. The data from Japan showed that the Leading Economic Index declined to 105.6 in June from 106.1 in May.
After spending the majority of the week below $3,350, Gold gathered bullish momentum on Friday and climbed to a two-week-high above $3,370. XAU/USD fluctuates in a narrow channel early Monday and holds comfortably above $3,360.
Fed FAQs
Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed's 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money. When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.
The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. The FOMC is attended by twelve Fed officials - the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.
In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed's weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.
Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.
Last updated
: 2025.08.25
Related articles
Forex Today: Greenlight for a Fed cut, UK GDP in focus
3 minutes agoNZD/USD climbs to near one-month high as Greenback weakens after US CPI data
2025.09.12 03:27Canadian Dollar finds a foothold on Thursday, paring losses on a technical bounce
2025.09.12 02:22Dow Jones Industrial Average soars to new highs after CPI inflation meets expectations
2025.09.12 01:39EUR/JPY steadies at 172.65 as ECB hawkish hold offsets BoJ hike risks
2025.09.12 00:21USD/CAD tumbles from three-week high as sticky US inflation fails to lift the Greenback
2025.09.12 00:05
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Forex Today: Greenlight for a Fed cut, UK GDP in focus
Inflation prints in the producer and the consumer side in the US further cemented the case for the first interest rate cut by the Federal Reserve, since December 2024.
New
2025.09.12 04:30NZD/USD climbs to near one-month high as Greenback weakens after US CPI data
The New Zealand Dollar (NZD) edges higher against the US Dollar (USD) on Thursday, with NZD/USD extending gains for the second straight session after reversing earlier losses as the Greenback softened in the wake of the latest US inflation release.
New
2025.09.12 03:27Gold slips as traders book profits despite increasing Fed dovish bets
Gold price trimmed some of its earlier losses on Thursday, yet it remains negative in the day, down over 0.14% as the latest print of consumer inflation was aligned with estimates.
New
2025.09.12 03:24Canadian Dollar finds a foothold on Thursday, paring losses on a technical bounce
The Canadian Dollar (CAD) found firm bids on Thursday, springing back from a three-week low and chalking in another technical rejection from the 200-day Exponential Moving Average (EMA) against the US Dollar (USD).
New
2025.09.12 02:22Dow Jones Industrial Average soars to new highs after CPI inflation meets expectations
The Dow Jones Industrial Average (DJIA) found a new record high on Thursday, climbing nearly 600 points at its peak and tapping 46,093 for the first time ever.
New
2025.09.12 01:39WTI Crude Oil plunges as OPEC and IEA warn of oversupply risks
West Texas Intermediate (WTI) Crude Oil comes under renewed selling pressure on Wednesday, paring most of the gains registered earlier this week, as investors respond to back-to-back bearish signals from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency
New
2025.09.12 01:19EUR/JPY steadies at 172.65 as ECB hawkish hold offsets BoJ hike risks
The Euro advances against the Japanese Yen during the North American session, up a modest 0.10% after the European Central Bank (ECB) held rates unchanged, as expected.
New
2025.09.12 00:21USD/CAD tumbles from three-week high as sticky US inflation fails to lift the Greenback
The Canadian Dollar (CAD) strengthens against the US Dollar (USD) on Thursday, with USD/CAD retreating sharply after testing its highest level since August 22 earlier in the European session.
New
2025.09.12 00:05United States FX Today: USD under pressure ahead of the Michigan Consumer Confidence Index
The US Dollar (USD) retreated on Thursday with the US Dollar Index (DXY) down 0.3% over the session, weighed down by the publication of US inflation data.
New
2025.09.11 23:53USD/JPY drops below 147.50 on renewed USD weakness
After rising above 148.00 earlier in the day, USD/JPY made a sharp U-turn and turned negative on the day below 147.50. At the time of press, the pair was trading at 147.35, losing about 0.1% on a daily basis.
New
2025.09.11 23:07Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
