Skip to content
Risk warning: Our products are leveraged and carry a high level of risk, which can result in the loss of your entire capital. Such products may not be suitable for all investors. It is crucial to understand the risks involved fully.
  • Support
  • For Institutionals
  • Trading

    Trading Platforms

    • MetaTrader 4 Terminal
    • MetaTrader 5 Terminal
    • PAMM Accounts
    • Equinix Trading Server

    Markets coverage

    • Forex Currencies
    • Spot Metals
    • Commodities

     

    • CFDs on Stocks
    • Indices
    • CFDs on Crypto

    Start Trading

    • Standard Accounts For individuals
    • Institutional Account For professionals
    • Deposits & Withdrawals
  • Conditions

    Trading Conditions

    • Spreads Overview
    • Swap-Free
    • Leverage Information

     

    • CFD Specifications
    • Full Trading Conditions

    Invest on your terms

    Transparent pricing, reduced trading costs, and leverage that adapts to your strategy.

    Explore conditions
  • Tools
    • Weekly Outlook
    • Daily Technical
    • Market Commentary
    • Economic Calendar
    • Blog
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
  • Trading
    • Markets Coverage
    • MetaTrader 5 Platform
    • MetaTrader 4 Platform
    • Standard Accounts
    • Institutional Account
    • PAMM Accounts
    • Equinix Trading Server
    • Deposits & Withdrawals
  • Conditions
    • Spreads Overview
    • Leverage Information
    • Swap-Free Trading
    • CFD Specifications
    • Full Trading Conditions
  • Tools
    • Daily Technical
    • Weekly Outlook
    • Market Commentary
    • Economic Calendar
    • Blog
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
  • Client Portal
  • Open Account
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
Open Account
Client Portal
Currencies, Markets

Dollar Rises Slightly Before the Fed’s Decision, The Euro Remains Resistant

May 7, 2025 OnEquity

The U.S. dollar edged higher on Wednesday, trading within narrow ranges as markets awaited the outcome of the Federal Reserve’s latest policy meeting and digested news of renewed trade negotiations between the U.S. and China.

At 04:45 ET (08:45 GMT), the U.S. Dollar Index, which tracks the greenback against a basket of six major currencies, was up 0.2% at 99.225, rebounding after a series of steep losses earlier in the month.

Dollar Finds Support on Trade Developments

The greenback received a modest boost following reports that Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer are scheduled to meet China’s top economic official in Switzerland on Saturday. The announcement has rekindled hopes of easing trade tensions between the world’s two largest economies.

The dollar had previously come under significant pressure in April after President Donald Trump rolled out his “reciprocal” tariff strategy, targeting key trading partners—including China.

While a comprehensive trade deal remains a longer-term prospect, the mere resumption of dialogue has helped stabilize the dollar for now.

“In April, the yen and Swiss franc gained the most from the spike in trade tensions and broad selling of U.S. assets. With talks back on the table, we expect USD/JPY and USD/CHF to lead the dollar’s rebound,” analysts at ING wrote in a client note.

Still, upside potential remains capped ahead of the Fed’s policy decision later today.

Market Eyes Fed Comments for Economic Signals

The Federal Reserve is widely expected to leave interest rates unchanged. As a result, investor attention will turn to Chair Jerome Powell’s remarks for insights into the central bank’s outlook, particularly regarding the economic impact of the Trump administration’s trade agenda and the likely path of future rate moves.

“We don’t anticipate major surprises,” said ING. “The Fed continues to push back against political pressure to cut rates. Markets seem content to wait for a likely rate cut in July, pending confirmation from upcoming economic data.”

Euro Holds Ground Despite German Political Surprise

In Europe, the euro was little changed, with EUR/USD trading at 1.1367. German industrial orders surprised to the upside in March, rising 3.6%—the first increase this year and stronger than expected.

The single currency briefly dipped after Friedrich Merz was confirmed as Germany’s new chancellor on his second attempt Tuesday, marking the first time in postwar history that a chancellor candidate failed to win a first-round parliamentary vote.

“EUR/USD dipped to 1.1310 following the initial political shock, but has since shown resilience,” ING noted.

Sterling Softens Ahead of BoE Decision

GBP/USD slipped 0.2% to 1.3352, with traders cautious ahead of the Bank of England’s upcoming policy meeting. Markets broadly expect the central bank to cut rates by 25 basis points.

Yuan Eases After PBOC Policy Moves

The USD/JPY climbed 0.6% to 143.33, as safe-haven demand for the yen waned amid renewed U.S.-China trade dialogue.

Meanwhile, the USD/CNY edged up 0.1% to 7.2257 after the People’s Bank of China announced a 10-basis point cut to its benchmark repurchase rate, lowering it to 1.40%. Additionally, the central bank reduced the reserve requirement ratio by 50 basis points to 6.2%.

The policy adjustments are aimed at injecting further monetary support into China’s economy, which continues to face pressure from the ongoing trade dispute with the United States.

  • Currencies
  • Dollar
  • Euro
  • Pound
  • Yuan

Post navigation

Previous
Next

Search

Categories

  • Analysis (227)
  • Beginner (26)
  • Cryptos (150)
  • Currencies (196)
  • Daily Market Watch (6)
  • Daily Technical (152)
  • Education (67)
  • Expert (23)
  • Intermediate (18)
  • Markets (464)
  • News & Releases (22)
  • Stocks (308)
  • Uncategorized (1)
  • Weekly Outlook (72)

Recent posts

  • Japan’s finance minister supports cryptocurrencies as portfolio diversifiers
  • Today’s stocks to watch: Intel, Disney, and PDD
  • U.S stock futures dip after Wall Street rally on Powell’s dovish comments; Nvidia results pending

Tags

Analysis Beginner Bitcoin Cardano company news Crypto Cryptocurrencies Currencies Daily daily market watch Dollar Education Elections ETF ETFs Ethereum Euro Fed Index inflation Japan market commentary Markets oil Outlook Pound Ripple SEC Solana Stablecoin Stock Market Stocks Stocks Market Stocks today Technical Technical Analysis Technology Tether Trading Trump Wall Street Weekly Weekly Outlook Yen Yuan

Related posts

Currencies, Markets

Dollar rises marginally prior to the Fed minutes; the pound sterling gains ground following the CPI increase

August 20, 2025 OnEquity

The U.S. dollar edged higher on Wednesday as traders looked ahead to the release of the Federal Reserve’s July meeting minutes, followed by the annual Jackson Hole symposium, both expected to provide fresh signals on the central bank’s monetary policy outlook. At 04:55 ET (08:55 GMT), the Dollar Index, which tracks the greenback against six […]

Currencies, Markets

Dollar Falls Modestly Ahead of Jackson Hole, Euro Gains Momentum

August 19, 2025 OnEquity

The U.S. dollar edged lower Tuesday, giving back early gains as caution prevailed following the White House summit on Ukraine. At 04:40 ET (08:40 GMT), the Dollar Index, which measures the greenback against six major peers, slipped 0.1% to 97.920 after modest overnight gains. Dollar Trades in Narrow Range U.S. President Donald Trump assured President […]

Currencies, Markets

Dollar Rises Slightly Ahead of Washington Summit; Jackson Hole Seen as Key Event

August 18, 2025 OnEquity

The U.S. dollar inched higher Monday as markets turned their focus to diplomatic efforts aimed at ending the war in Ukraine and the closely followed Federal Reserve’s Jackson Hole symposium. At 03:00 ET (08:00 GMT), the Dollar Index, which measures the greenback against a basket of six major currencies, was up 0.2% at 97.890, recovering […]

  • Privacy policy
  • Client agreement
  • Legal
  • Support
  • +2484671965
  • [email protected]
  • Chat with us
Company
  • About us
  • Regulation
  • Safety of funds
  • Company news
  • Blog
  • FAQ
Account options
  • Standard accounts
  • Institutional account
  • PAMM accounts
  • Swap-free account
Conditions
  • Spreads overview
  • Leverage tiers
  • CFD specifications
  • Markets coverage
Trading tools
  • MetaTrader 5
  • MetaTrader 4
  • Equinix trading server
  • Economic calendar
  • Daily technical
  • Weekly outlook
  • Market commentary
OnEquity Ltd is incorporated in Seychelles as a Securities Dealer with License No. SD154, authorized by the Seychelles Financial Services Authority (FSA), adhering to the Consolidated Securities Act, 2007. Registration No. 810588-1.

The website is operated and provides content by the OnEquity group of companies, which include:

OnEquity SA (Pty) Ltd, incorporated in South Africa, Company reg. 2021/321834/07, regulated by the Financial Sector Conduct Authority (FSCA) with FSP No. 53187.

OnEquity LLC, recognized by the Registrar of International Business Companies and the Financial Services Authority in St. Vincent and the Grenadines, Registration No. 286 LLC 2020.

ONEQ Global Ltd, registered in Cyprus, Company reg. HE 435383, located at Agias Zonis 22, Limassol, focusing on comprehensive service solutions within the OnEquity Group.
Risk Disclosure: Trading in financial instruments involves substantial risk and may not be suitable for all investors. The value of investments is volatile and can result in total loss of capital. Investors should consider their financial situation, investment experience, and risk tolerance, and may seek professional advice. Past performance is not indicative of future results.

Eligibility: Services are available to individuals 18 years or older.

Restricted Jurisdictions: The content provided by OnEquity is not intended for residents of the United States, Canada, North Korea, Yemen, Iran, Belgium, Syria, or any jurisdiction where such distribution or use would be contrary to local law or regulation.

All trademarks™ and brand names belong to their respective owners and are used here for identification purposes only. Use of these names does not imply endorsement.
© OnEquity. All Rights Reserved.