FPG：The US dollar surged while gold futures hit a new low, marking their weakest point in over six months. 1. Federal Reserve official Kashkali mentioned in a media interview that they might need to reduce the strength of monetary policy in the event of a government shutdown or labor strikes that could potentially drag down the U.S. economy. This reduction in monetary policy doesn't necessarily mean cutting interest rates but rather continuing to suspend interest rate hikes. Kashkali also noted that if interest rate hikes don't have the expected impact of slowing economic growth, they may have to consider further interest rate increases. 2. U.S. oil WTI saw a more than 2% increase, reaching $92.36 per barrel, while Brent crude oil rose by 1.8% to $95 per barrel. It's worth noting that the United States, now the world's largest oil producer, wields significant influence in the oil market. 3. Elderson, a member of the Executive Committee of the European Central Bank, suggested that interest rates might have reached their peak. However, he still sees upside risks for inflation. Recent developments, including the unexpected weakening of the euro and the unexpected rise in crude oil prices, could have adverse implications for the overall eurozone economy. 4. The approval of the Rosebank oil and gas field by the British government is significant. Rosebank is currently the largest undeveloped oil and gas field in the United Kingdom, with recoverable oil reserves of more than 100 million barrels. This move reflects the growing emphasis on energy stability over environmental concerns for European governments. 5. In a surprising turn, U.S. durable goods orders increased by 2% in August, contrary to market expectations of a 0.5% decline, especially considering the data was revised in July. This indicates that business equipment expenditure regained momentum after a decline at the beginning of the third quarter. Despite rising borrowing costs, strong investment sentiment persists, which is not favorable for gold prices overall. 6. The U.S. Energy Information Administration (EIA) reported a decrease of 2.169 million barrels in U.S. crude oil inventories for the week ending September 22. This reduction exceeded expectations by 320,000 barrels. Additionally, both U.S. crude oil futures delivery area and Cushing crude oil stocks in Oklahoma dropped by 943,000 barrels, reaching a new low since July 2022 and approaching their lowest operational level. The narrowing price difference between the two oil futures is noteworthy, as it is the highest level of the year. These factors suggest the potential for continued upward momentum in crude oil prices unless bearish developments emerge in the future. King notes that the price of gold has fallen to a new cyclical low due to rising U.S. Treasury yields and increased investment risks. This decline is attributed to the strengthening of the U.S. dollar and the rise in global bond yields. A stronger U.S. dollar typically disadvantages dollar-denominated commodities and makes them more expensive for users of other currencies. Additionally, higher bond yields increase the opportunity cost of holding non-yield assets. Dawson highlights that the U.S. dollar has reached a 10-month high, leading to a nearly nine-month low for the euro. This trend is driven by strong U.S. economic data that exceeded expectations of a slowdown. The Federal Reserve's recent warning about the possibility of further interest rate hikes and an extended period of high rates has also contributed to the dollar's strength. European Central Bank data reveals a slowdown in corporate sector credit growth in August, compared to July, and a decrease in the growth rate of household borrowing. Dave reports that WTI crude oil futures have surpassed the $95 mark for the first time since August 2022. This is partly due to the unexpected decline in U.S. crude oil inventories, as reported by the U.S. Energy Information Administration (EIA). Crude oil inventories in the primary delivery area have also continued to decline significantly. Additionally, a drone attack near the Yemen border in southern Saudi Arabia has raised concerns, and investors are advised to monitor the situation closely. Yue Lin notes that the three major U.S. stock indexes closed with mixed results. The Dow Jones Index closed down 0.20%, while the S&P 500 increased by 0.06%, and the Nasdaq Composite Index rose by 0.22%. The report suggests that the downside risk for U.S. stocks remains greater than the upside potential. The above analysis is only for the views of market researchers and is for reference only and is not Regarded as a specific investment suggestion. #Forex #trading #tradingforex