Trusted by over 15 Million Traders
The Most Awarded Broker
for a Reason
market news
The market situation has changed suddenly! Trade dawn + Fed turns to crash CPI cooling
Wonderful introduction:
Spring flowers will bloom! If you have ever experienced winter, then you will have spring! If you have dreams, then spring will definitely not be far away; if you are giving, then one day you will have flowers blooming in the garden.
Hello everyone, today XM Foreign Exchange will bring you "[XM Official Website]: The market situation suddenly changes! The dawn of trade + the Federal Reserve turns to crash CPI cooling down". Hope it will be helpful to you! The original content is as follows:
Earlier this week, as China and the United States reached an important consensus on the trade agreement, market risk appetite began to recover, and major Wall Street stock indexes ended this week with a positive trend. The S&P 500 is expected to achieve its fifth consecutive trading day. The three major U.S. stock indexes closed up weekly. The S&P 500 recovered all lost ground this year, only about 4% lower than its historical high.
Although the US dollar rose at the beginning of the week due to the trade war truce, it was suppressed by data on Thursday and Friday and still closed higher for the fourth consecutive week.
In terms of xmserving.commodities, as safe-haven funds began to gradually flow out this week, risk appetite rose, and risk assets were suppressed, especially gold. Gold continued to fall this week, and approached the $3,100 mark on Thursday. At the end of Friday, gold rebounded to near the $3,200 mark due to Moody's downgrade in the United States rating.
Although oil prices rose sharply at the beginning of the week, it failed to hold on to most of the gains, as the market expected that the U.S. and Iran would likely reach a new nuclear agreement and the oil market could fall into oversupply.
Looking forward next week, the US data will be relatively cold, but many Fed officials will speak out, and be sure to pay attention to whether they will support Bostic's statement that the Fed will only cut interest rates once this year. In addition, Moody's downgrade of the US rating may cause a "bloody" at the opening of the market next Monday...
Foreign Exchange Market:The US dollar index this week is affected by the interweaving of trade favorable trade and economic data, showing a trend of rising first and then falling. At the beginning of the week, market confidence boosted, and the US dollar rose sharply, even approaching the 102 mark at one point. Subsequently, the US CPI data was lower than expected and the retail sales and PPI data weakenedInfluence, the US dollar fell and closed near the 101 integer mark this week, and closed higher for the fourth consecutive week. Non-US currencies continue to be affected by the trend of the US dollar. The euro and pound sterling fell first against the US dollar and then rebounded. The volatility during the week was significant, and Europe and the United States closed down for the fourth consecutive week; the US dollar continued to fall after rising at the beginning of the week, closed down this week, stopping in three consecutive weeks.
Gold Market:The volatility intensifies after the initial consolidation of the spot gold week, and the overall decline will be recorded this week. Optimism about the trade situation and the delay in the expected time for the Federal Reserve to restart interest rate cuts have all suppressed the gold price trend, and it was approaching $3,120/ounce during the session on Thursday. Although there were signs of a deep V rebound, it was still lower than the previous high and closed at $3,202/ounce this week.
Crude oil market: International oil prices rose first and then fell this week. Oil prices rose at the beginning of the week due to trade optimism, but oil prices turned to decline due to market expectations that the United States and Iraq would reach a nuclear agreement, and EIA data showed that U.S. crude oil inventories increased last week, which triggered investors' concerns about oversupply, and oil prices turned to decline. But overall, the two oils closed higher for the second consecutive week this week.
Review of the news this week Feder Chairman Powell warned at a research meeting on May 15 that the US economy is facing the challenge of normalizing supply shocks and intensifying inflation fluctuations. For the first time, he publicly expressed his support for the re-evaluation of the "average inflation target system", emphasizing that stabilizing inflation expectations is crucial to the effectiveness of policies. Although Powell revealed that the Federal Reserve is promoting the revision of the policy framework to adapt to economic changes in the post-epidemic era, it has made it clear that the interest rate decision mechanism will not change in the short term, and the evaluation results may be announced in the third quarter. The latest economic data cast a shadow on expectations of interest rate cuts: the US CPI fell to 2.3% year-on-year in April (2.4%), and the core CPI stabilized at 2.8%, but the Fed's PCE indicator that is more concerned about is still higher than the 2% target. Chicago Fed Chairman Goulsby pointed out that more data is needed to eliminate tariff interference and the market should not over-interpret single-month data. Wall Street therefore postponed its interest rate cuts. Goldman Sachs and Barclays are expected to postpone the time point for the first time from September to December, while Atlanta Fed Chairman Bostic expects to cut interest rates only once in 2025. China and the United States have reached phased results after the talks in Geneva. The two sides announced that they would cancel 91% of the additional tariffs and suspend 24% of the remaining 34% of the tariffs (for 90 days), and retain 10% as bargaining chips. China simultaneously suspends non-tariff countermeasures, including export controls. The Ministry of Foreign Affairs stressed on the issue of fentanyl tariffs that the US should stop "passing the blame" and restart dialogue with an equal attitude. On May 16, the Russian-Ukraine delegation's negotiations in Istanbul did not make any substantial progress, and the meeting lasted only two hours and broke down. Russia insists on Ukrainian armyWithdrawal from the four states of Donbas and recognizing the ownership of Crimea, it was denounced as "unacceptable" by Ukrainian representatives. The two sides reached an agreement on exchanges of thousands of prisoners of war, and the intensity of firefighting on the battlefield increased instead of falling: the Russian army shot down 65 Ukrainian drones in a single day, and the Ukrainian army claimed to intercept 73 Russian drones. U.S. President Trump signed a business agreement with a total value of over US$840 billion during his visit to Saudi Arabia, Qatar and the UAE. Saudi Arabia promised to invest $600 billion in the United States, covering technology, arms and other fields, of which US$142 billion in arms sales set a record; Qatar signed a contract for US$243.5 billion in Boeing passenger aircraft and drone procurement; the UAE reached US$200 billion in energy and data center cooperation. Trump also put pressure on Apple CEO Cook to dissuade him from expanding India's production scale. Trump revealed in Doha that the US-Iran nuclear agreement is "close to reach", but Iran refused to xmserving.completely stop uranium enrichment activities and only agreed to lower it to the level of the 2015 agreement. Iranian political adviser Shamhani proposed to "permanently abandon nuclear power" in exchange for a xmserving.complete lifting of the ban, but Revolutionary Guard xmserving.commander Salami criticized the US for "destructing regional stability." The two sides still have disputes over the location where the enriched uranium is transferred. The 13F report in the first quarter of 2025 shows that Bridgewater Fund significantly increased its holdings of Chinese stocks such as Alibaba, Baidu, and JD.com, and also established new positions in gold ETFs; Hillhouse Capital increased its holdings in nearly 20 Chinese stocks such as Baidu and Ideal Auto, but reduced its holdings in Alibaba and BeiGene. Buffett's Berkshire cleared Citibank, reduced its holdings in Bank of America, and maintained Apple's position unchanged. Soros Fund has turned to AI, space xmserving.communications and cryptocurrency fields, increasing its holdings in Nvidia and ASTSpaceMobile. The Federal Reserve policy framework is brewing to adjust the path to interest rate cuts and add variables
The Sino-US economic and trade negotiations have now broken through the local easing of the tariff war
Russia-Ukraine peace talks are deadlocked, and the battlefield conflict continues to escalate
Trump's "gold-dollar diplomacy" in the Middle East won a trillion-dollar order
The US-Iran nuclear negotiations are turning around and key differences remain
The global institutional holdings are reshuffled: Bridgewater bets on Chinese stocks Buffett withdrew from the banking industry
The tariff game between the United States, Japan and India has escalated. The global trade pattern has changed. Trump announced that he will finalize the "stage tariff rate" in the next three weeks, requiring trading partners to "pay" for entering the US market. India has actively proposed a zero-tax plan for US goods, trying to resolve the steel and aluminum tariff dispute; Japan and the United States will launch the third round of negotiations, and Japan's strategy will turn to "focus on quality and neglect speed", focusing on automobile tariff reductions. Japan's GDP unexpectedly shrank by 0.2% in the first quarter, highlighting the urgency of negotiations.
IEA and OPEC have diverged in demand forecasts
OPEC maintains global oil demand growth expectations from 2025 to 2026 (1.3 million barrels per day, 1.28 million barrels per day), but the actual increase in production in April was only 25,000 barrels per day, far lower than the plan. The International Energy Agency (IEA) raised its 2025 demand forecast to 104 million barrels per day, believing that low oil prices will stimulate consumption, but warned of oversupply in non-OPEC countries in 2026. The US sanctions on Iran and Venezuela may become a key variable in the balanced market.
The above content is about "【XM official website】: market trendThe cloud suddenly changes! The entire content of the Dawn of Trade + the Fed's turn to crash CPI cooling" was carefully xmserving.compiled and edited by the editor of XM Forex. I hope it will be helpful to your transaction! Thank you for your support!
Spring, summer, autumn and winter, every season is a beautiful scenery, and it stays in my heart forever. I've slipped away~~~
Disclaimers: XM Group only provides execution services and access permissions for online trading platforms, and allows individuals to view and/or use the website or the content provided on the website, but has no intention of making any changes or extensions, nor will it change or extend its services and access permissions. All access and usage permissions will be subject to the following terms and conditions: (i) Terms and conditions; (ii) Risk warning; And (iii) a complete disclaimer. Please note that all information provided on the website is for general informational purposes only. In addition, the content of all XM online trading platforms does not constitute, and cannot be used for any unauthorized financial market trading invitations and/or invitations. Financial market transactions pose significant risks to your investment capital.
All materials published on online trading platforms are only intended for educational/informational purposes and do not include or should be considered for financial, investment tax, or trading related consulting and advice, or transaction price records, or any financial product or non invitation related trading offers or invitations.
All content provided by XM and third-party suppliers on this website, including opinions, news, research, analysis, prices, other information, and third-party website links, remains unchanged and is provided as general market commentary rather than investment advice. All materials published on online trading platforms are only for educational/informational purposes and do not include or should be considered as applicable to financial, investment tax, or trading related advice and recommendations, or transaction price records, or any financial product or non invitation related financial offers or invitations. Please ensure that you have read and fully understood the information on XM's non independent investment research tips and risk warnings. For more details, please click here
CATEGORIES
News
- 【XM Decision Analysis】--EUR/USD Forex Signal: Double Bottom Pattern Forms
- 【XM Group】--GBP/USD Forex Signal: Potential Bullish Head & Shoulders Forming
- 【XM Market Review】--GBP/USD Analysis: Under Pressure Before BoE
- 【XM Forex】--USD/RUB Analysis: Power of Dialogue Effecting Behavioral Sentiment
- 【XM Market Analysis】--Natural Gas Forecast: Natural Gas Up Big on Monday