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AI-Enhanced Forex News Archive

Professional trading insights from Tuesday, August 26, 2025

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News Statistics for Tuesday, August 26, 2025

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6
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Archive date: Tuesday, August 26, 2025

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nasdaq.com

USD Index Falls 0.22% as Trump Threatens Fed Independence

The US Dollar Index declined 0.22% today amid growing concerns over Federal Reserve independence after President Trump moved to fire Fed Governor Lisa Cook. This political interference in monetary policy operations has triggered risk-off sentiment in currency markets, with traders pricing in increased uncertainty around future Fed decisions. The dollar weakened against most major currencies, with EUR/USD gaining approximately 25 pips to 1.0875 and GBP/USD advancing to 1.3120. Markets are particularly sensitive to Fed independence issues as they could impact the central bank's ability to conduct effective monetary policy and maintain price stability. Technical indicators show the DXY breaking below the 103.50 support level, potentially opening the path to 103.00. Traders should monitor upcoming PCE inflation data and any further political developments that could exacerbate dollar weakness or prompt safe-haven flows back into USD positions.
EURUSD GBPUSD
Sentiment: Negative
Source: Marketaux
Forexlive

USD Safe-Haven Demand Rises on Ukraine Security Concerns

The US dollar strengthened across major pairs as geopolitical tensions escalated following Ukrainian President Zelenskyy's call for accelerated security guarantees after meeting with US Envoy Kellogg. Safe-haven flows pushed USD/JPY up 0.2% to 150.45, while EUR/USD declined 0.15% to 1.0835 as risk appetite waned. The developments come amid broader market uncertainty about the Russia-Ukraine conflict's potential escalation, prompting investors to reduce exposure to riskier currencies. European currencies showed particular weakness, with EUR and GBP under pressure as proximity to the conflict zone weighs on sentiment. Technical indicators suggest USD/JPY faces resistance at 150.80, while EUR/USD found support near the 1.0820 level. Traders are positioning defensively ahead of potential further geopolitical developments, with safe-haven currencies likely to remain bid if tensions persist through the week.
EURUSD USDJPY GBPUSD
Sentiment: Negative
Source: Finnhub
rttnews.com

Risk-Off Sentiment Pressures EUR/USD and Commodity Currencies

Global forex markets exhibited heightened risk aversion as multiple concerns converged, pushing EUR/USD down 0.25% to 1.0810 and commodity currencies significantly lower. Market participants cited uncertainty over Federal Reserve rate cut timing, escalating Russia-Ukraine tensions, potential trade tariff implementations, and French political instability as key drivers. AUD/USD dropped 0.4% to 0.6420, while NZD/USD fell 0.35% to 0.5880, reflecting classic risk-off positioning. The Swiss franc and Japanese yen outperformed as traditional safe havens, with USD/CHF declining to 0.8950. Technical analysis shows EUR/USD testing critical support at 1.0800, with a break below potentially accelerating losses toward 1.0750. Sentiment indicators suggest defensive positioning could persist until clearer signals emerge from central banks or geopolitical tensions ease, keeping pressure on risk-sensitive currencies.
EURUSD AUDUSD NZDUSD USDCHF USDJPY
Sentiment: Very Negative
Source: Marketaux
Forexlive

EUR/USD trapped in range as Fed rate cut expectations shift

EUR/USD remains confined within a tight 1.0820-1.0870 range during Monday's European session, struggling to find direction amid shifting Federal Reserve rate cut expectations. Major investment banks including Credit Agricole and Morgan Stanley now project only two Fed rate cuts by year-end, down from previous estimates of three or four cuts. The pair faces additional pressure from French political uncertainty, with the CAC 40 index declining 1.2% and consumer confidence dropping to 87 from 89 expected. Barclays notes weak dollar selling signals heading into month-end, suggesting potential downside pressure. Technical indicators show the pair testing resistance at 1.0870, with support established at 1.0820. Traders await fresh catalysts from upcoming US economic data releases to break the current consolidation phase.
EURUSD
Sentiment: Neutral
Source: Finnhub
financefeeds.com

EUR/USD Volatility Spikes After Powell's Dovish Fed Comments

EUR/USD experienced significant intraday volatility, initially surging 0.6% to 1.0920 following Fed Chair Powell's unexpectedly dovish rhetoric on Friday, before retracing to 1.0865 as markets digested the implications. Powell's speech markedly increased market expectations for a September rate cut, with futures now pricing in a 75% probability of a 25 basis point reduction. The pair whipsawed between 1.0850 and 1.0920 as traders repositioned, with implied volatility measures jumping to two-month highs. Technical indicators show EUR/USD consolidating above the key 1.0850 support level, while resistance emerges at 1.0920 (Friday's high). The dovish Fed pivot could provide medium-term support for EUR/USD, particularly if ECB officials maintain their relatively hawkish stance. Traders should expect continued volatility ahead of this week's US economic data releases, which could either reinforce or challenge current rate cut expectations.
EURUSD
Sentiment: Positive
Source: Marketaux
investing.com

EUR/USD eyes breakout above 1.0900 on weakening US data outlook

EUR/USD is positioned for a potential breakout from its recent 1.0850-1.0900 trading range, with technical indicators suggesting upward momentum if US economic data continues to disappoint. The pair has consolidated near 1.0875 during early European trading, finding support from expectations of softer US economic indicators that could pressure the dollar. Recent US data releases have shown mixed signals, with manufacturing PMI remaining in contraction territory and consumer confidence wavering. Analysts highlight that a sustained break above the 1.0900 psychological resistance could open the path toward 1.0950, the next major technical level. Key support remains at 1.0850, coinciding with the 20-day moving average. The upcoming US employment and inflation reports will be crucial in determining whether the euro can maintain its recent strength against the greenback.
EURUSD
Sentiment: Positive
Source: Marketaux
investing.com

USD/JPY rebounds as yen pares gains despite US political concerns

USD/JPY has recovered 0.4% to 145.80 during Monday's Asian session, as the yen retreated from earlier gains driven by US political uncertainty. The pair initially dropped to 145.20 amid concerns over Federal Reserve independence following political statements, triggering safe-haven flows into the Japanese currency. However, the dollar found support as traders reassessed the immediate impact of political rhetoric on monetary policy. Bank of Japan officials remain cautious about further policy tightening, providing limited support for sustained yen strength. Technical analysis shows USD/JPY facing resistance at 146.20, while immediate support lies at 145.50. Market participants remain wary of potential volatility from ongoing political developments in the US, which could reignite safe-haven demand for the yen in coming sessions.
USDJPY
Sentiment: Neutral
Source: Marketaux
investing.com

Gold surges to $2,040 as Fed independence concerns trigger haven flows

Gold prices have jumped 1.2% to $2,040 per ounce during Monday's trading session, driven by mounting concerns over Federal Reserve independence amid political turmoil. The precious metal benefited from increased safe-haven demand as traders worried about potential political interference in monetary policy decisions. EUR/USD traded sideways near 1.0865, while AUD/USD declined 0.3% to 0.6540 as risk sentiment deteriorated. Gold futures for December delivery climbed to $2,055, reflecting strong forward demand. Technical indicators show gold breaking above its 50-day moving average at $2,025, with next resistance at $2,060. The rally accelerated after political statements raised questions about central bank autonomy, prompting investors to seek traditional safe-haven assets. Further gains appear likely if political uncertainty persists through the week.
EURUSD AUDUSD
Sentiment: Very Positive
Source: Marketaux
investing.com

USD weakens across majors as Fed independence fears mount

The US dollar has declined 0.5% against major currencies during Monday's session, with the DXY index falling to 103.20 as concerns over Federal Reserve independence rattled markets. EUR/USD gained 0.4% to 1.0885, while USD/JPY dropped 0.6% to 145.50 as traders reassessed dollar positions amid political uncertainty. Market participants fear potential political interference could compromise the Fed's ability to conduct independent monetary policy, undermining dollar credibility. Additionally, renewed tariff threats have raised concerns about potential economic disruption and inflation pressures. Technical analysis shows the DXY testing support at 103.00, with a break below potentially accelerating dollar weakness. Near-term dollar sentiment remains fragile, with traders monitoring political developments closely for signs of escalation or resolution.
EURUSD USDJPY
Sentiment: Negative
Source: Marketaux
investing.com

GBP/USD Tests Key 1.3585 Resistance Amid Technical Battle

GBP/USD approached the critical 1.3585 resistance level during Asian trading, gaining 0.15% to 1.3570 as bulls attempted to break through this key technical barrier for the third time this month. The psychological level has capped advances since early August, creating a well-defined ceiling that traders are closely monitoring. Market structure analysis reveals strong buying interest above 1.3520 support, with momentum indicators showing positive divergence on the 4-hour timeframe. A decisive break above 1.3585 could trigger stop-loss orders and accelerate gains toward 1.3650, while failure might prompt a retracement to 1.3500. Volume patterns suggest accumulation near current levels, though conviction remains limited ahead of UK economic data releases later this week. Technical traders are positioning for a potential breakout, with the pair's ability to sustain moves above resistance likely determining near-term directional bias.
GBPUSD
Sentiment: Positive
Source: Marketaux
Forexlive

EUR/USD steady as France confidence data awaits, light calendar ahead

EUR/USD trades near 1.0850 in early European hours, showing minimal movement as markets await France's consumer confidence report at 06:45 GMT. The pair remains range-bound between 1.0820-1.0880 as traders face another sparse economic calendar day. French consumer confidence for July could provide minor directional cues, though significant volatility is unlikely given the absence of major data releases. The euro has found support above the 1.0820 level, coinciding with the 50-day moving average, while resistance persists at 1.0880. With no ECB officials scheduled to speak and US markets quiet until later in the week, EUR/USD may continue consolidating within its current range. Traders are positioning cautiously ahead of Thursday's eurozone inflation data and Friday's US PCE report, which could break the pair out of its current sideways pattern.
EURUSD
Sentiment: Positive
Source: Finnhub
investing.com

NZD/USD Drops 0.5% on RBNZ Dovish Shift and US Dollar Strength

NZD/USD declined sharply to 0.5845, falling 0.5% as the Reserve Bank of New Zealand's increasingly dovish stance combined with robust US economic data to pressure the Kiwi dollar. The RBNZ's recent communications suggest potential rate cuts as early as Q4 2024, contrasting with the Fed's more measured approach to policy easing. US data showed consumer confidence rising to 103.3, exceeding forecasts and reinforcing dollar strength across the board. Technical analysis reveals NZD/USD broke below the 0.5880 support level, opening the path toward 0.5800 psychological support. The 50-day moving average at 0.5920 now acts as dynamic resistance, capping any recovery attempts. With New Zealand's economic outlook weakening amid global growth concerns and the RBNZ's pivot toward accommodation, the pair faces continued downside pressure unless US data significantly disappoints or risk sentiment improves markedly.
NZDUSD
Sentiment: Negative
Source: Marketaux
investing.com

EUR/USD Volatility Expected on PCE Data and Fed Uncertainty

EUR/USD faces heightened volatility risks as markets await crucial US PCE inflation data while digesting news of Fed Governor Cook's potential dismissal. The pair currently trades near 1.0850, showing modest gains as dollar sentiment weakens on political uncertainty surrounding the Federal Reserve. The upcoming PCE deflator, the Fed's preferred inflation gauge, could significantly impact rate expectations and dollar strength. Additionally, Nvidia earnings later this week add another volatility catalyst, potentially affecting risk sentiment across currency markets. S&P 500 futures indicate gap risk at the open, which typically correlates with dollar movements. Technical analysis shows EUR/USD testing resistance at 1.0875, with support holding at 1.0820. A break above resistance amid weak PCE data could propel the pair toward 1.0900-1.0920. Traders should prepare for increased volatility and consider tighter risk management as multiple high-impact events converge, potentially creating sharp directional moves in major currency pairs.
EURUSD
Sentiment: Neutral
Source: Marketaux
forexlive.com

USD rebounds as Fed's Cook dismisses removal attempts, political tensions rise

The US dollar index recovered 0.2% to 101.50 after Fed Governor Lisa Cook publicly rejected removal attempts, asserting the independence of Federal Reserve governors. Markets initially sold dollars on concerns about potential Fed instability, pushing USD/JPY down to 149.20 before recovering to 149.85. Cook's firm stance reassured investors about Fed continuity, with traders pricing in reduced political interference risk. The dollar's recovery accelerated as European currencies weakened, with EUR/USD falling back to 1.0845 from intraday highs of 1.0875. Technical indicators show the dollar index defending crucial support at 101.20, with momentum indicators turning positive. The political tensions highlight ongoing concerns about central bank independence, though immediate market impact remains contained. Traders are monitoring developments closely, with any escalation potentially triggering renewed volatility in dollar pairs.
USDJPY EURUSD
Sentiment: Positive
Source: Marketaux
forexlive.com

USD/JPY whipsaws as Trump-Fed tensions spark gold rally to $2,520

USD/JPY experienced significant volatility, dropping from 150.20 to 149.30 before recovering to 149.85 as reports of Trump's attempt to remove Fed Governor Cook rattled markets. Gold surged 1.2% to $2,520 per ounce, benefiting from safe-haven flows amid political uncertainty surrounding Federal Reserve independence. Asian equity markets showed mixed reactions, with Nikkei falling 0.8% while Shanghai Composite gained 0.4%. The yen initially strengthened on risk-off sentiment but pared gains as Cook's resistance to removal calmed immediate concerns. Trading volumes remained elevated across major pairs, with implied volatility in USD/JPY options jumping to three-week highs. Technical analysis shows USD/JPY testing support at 149.50, with resistance at 150.50. The gold rally reflects growing hedging demand against potential central bank instability and political interference in monetary policy decisions.
USDJPY
Sentiment: Neutral
Source: Marketaux
Forexlive

USD/JPY volatility spikes as Japan warns against speculative yen trading

USD/JPY has experienced heightened volatility with intraday swings exceeding 150 pips as Japanese Finance Minister Kato expressed alarm over recent foreign exchange movements, particularly those driven by speculators. The yen has seen wild fluctuations over recent trading sessions, prompting official concern about currency stability. Kato's comments signal potential intervention readiness from Japanese authorities if excessive volatility persists. The minister also addressed domestic fiscal matters, noting discussions on new tax proposals and gasoline surcharge elimination, while emphasizing close monitoring of JGB market movements. Market participants are now on high alert for possible Ministry of Finance intervention, particularly if USD/JPY approaches recent highs. The pair faces immediate resistance at psychological levels, while support may emerge from intervention concerns. Traders should expect continued volatility as Japanese officials maintain verbal intervention efforts to curb speculative positioning against the yen.
USDJPY
Sentiment: Negative
Source: Finnhub
forexlive.com

AUD/USD dips 0.2% as RBA signals more rate cuts ahead in 2025

AUD/USD declined to 0.6725, falling 0.2% after RBA minutes revealed expectations for additional rate cuts in the coming year. The August meeting minutes, where the RBA cut rates by 25bp to 4.10%, indicated board members see 'some further reduction in cash rate likely to be needed' to support economic growth. Markets are now pricing in a 70% probability of another 25bp cut at the September meeting, up from 55% before the minutes' release. The Australian dollar faces additional pressure from weakening iron ore prices, down 1.5% overnight. Technical indicators show AUD/USD breaking below the 0.6740 support level, with next support at 0.6700. Resistance is seen at 0.6760, coinciding with the 20-day moving average. The dovish RBA stance contrasts with other major central banks' cautious approach, potentially limiting AUD upside through year-end.
AUDUSD
Sentiment: Negative
Source: Marketaux
thestockmarketwatch.com

Global FX markets brace for Fed uncertainty, mixed signals from central banks

Currency markets face heightened volatility as political tensions surrounding the Federal Reserve clash with diverging central bank policies globally. The dollar index hovers near 101.50, caught between safe-haven demand and concerns over Fed independence following reported attempts to remove Governor Cook. EUR/USD trades in a tight 1.0840-1.0860 range as traders await clearer signals from both the Fed and ECB. Asian currencies showed mixed performance, with USD/JPY recovering from 149.30 lows while AUD/USD weakened on dovish RBA minutes. Gold's surge to $2,520 reflects growing uncertainty about monetary policy stability. Market positioning remains cautious, with reduced leverage across major pairs as traders hedge against potential policy surprises. The week ahead features limited economic data, keeping focus on central bank communications and any developments in the Fed leadership situation.
EURUSD USDJPY AUDUSD
Sentiment: Neutral
Source: Marketaux

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