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As the U.S. government continues to shut down, a large number of Democratic Party projects will be frozen
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Hello everyone, today XM Forex will bring you "[XM Group]: The US government continues to be shut down, and a large number of Democratic Party projects will be frozen." Hope this helps you! The original content is as follows:
On October 20, spot gold was trading around US$4,268/oz in the Asian market on Monday. The price of gold dropped by nearly 2% after hitting a record high of US$4,379.38/oz last Friday. Suppressed by the strength of the US dollar and US President Trump’s tariff remarks, Trump Trump's tariff tone has softened; U.S. crude oil is trading around $57.17/barrel. U.S. oil hit a low since early May on Friday to $56.15/barrel. The International Energy Agency (IEA) predicted a growing supply glut and U.S. President Trump and Russian President Vladimir Putin agreed to meet again to discuss the Ukraine issue.
The dollar rose on Friday but posted weekly losses against the Swiss franc and Japanese yen last week on worries about trade tensions and jitters at some regional U.S. banks. The U.S. federal government shutdown has also hampered the release of key macroeconomic data, leaving investors with less certainty than usual about economic conditions.
Standard Chartered Bank's global head of G10 foreign exchange research Steve Englander said that there was some safe-haven selling in the U.S. dollar. In addition, news about regional banks and broader credit also suppressed the U.S. dollar to a certain extent.
The dollar fell to its weakest level against the Swiss franc in a month, while the yen erased earlier gains after Bank of Japan Governor Kazuo Ueda discussed factors that could lead to a rate hike this month.
USD/CHF fell 0.08% to 0.7925, falling to its lowest level since mid-September and recording its largest weekly decline since June. Amo Sahota, director of KlarityFX in San Francisco, said the market's reaction to this week is that the U.S. government has been closed for 17 days and we missed it.The jobless claims and employment data -- we were flying with limited visibility, the Fed felt that way, and then, trade tensions escalated despite Trump's attempts to calm things down, which I believe is all game theory and negotiation tactics. "
St. Louis Federal Reserve Chairman Mussallem said on Friday that he may support the Federal Reserve's interest rate cut at the end of this month, but also warned that the Fed should not go too far in reducing credit costs because the risk of inflation has not yet been xmaccount.completely eliminated.
The euro fell 0.17% against the U.S. dollar to $1.16678, hitting a record high of nine The U.S. dollar index, which tracks the U.S. dollar against six currencies, fell 0.43% last week, but rose 0.17% to 98.43 on the day. A senior xmaccount.committee member said on Friday that the Japan House of Representatives Schedule xmaccount.committee has agreed to hold a parliamentary vote on October 21 to elect the next prime minister. The yen has been on the defensive since dovish Sanae Takaichi was elected leader of Japan's ruling Liberal Democratic Party. USD/JPY was flat at 150.49 yen in late New York trade, recording a weekly loss.
BoJ Governor Kazuo Ueda said in Washington last Thursday that the central bank is still prepared to raise interest rates if the likelihood of economic growth and price forecasts increasing.
Asian Markets
The latest data released by Statistics New Zealand on Monday showed that New Zealand’s consumer price index (CPI) increased by 3.0% year-on-year in the third quarter (Q3) of 2025, while the increase in the second quarter was 2.7%. The market consensus is for growth of 3.0% during the reporting period. Quarterly CPI inflation rate in the third quarter It rose to 1.0% from the previous 0.5%.
China’s central bank, the People’s Bank of China (PBOC), announced on Monday that it would keep the loan prime rate (LPR) unchanged. The 1-year and 5-year LPRs are 3.00% and 3.50% respectively.
Official data released by the National Bureau of Statistics on Monday showed that China’s annual economic growth rate in the third quarter (Q3) of 2025 was 4.8%, xmaccount.compared with 5.2% in the second quarter. This figure is in line with market consensus.
On a quarterly basis, China's gross domestic product (GDP) rate increased by 1.1% in the third quarter after growing by 1.1% in the previous quarter, which was higher than the market consensus of 0.8%.
中China's full-year retail sales in June increased by 3.0%, which was expected to be 2.9%, and the previous value was 3.4%. Industrial production was 6.5%, which was expected to be 5.0%, and it was 5.2% in August.
At the same time, fixed asset investment fell by 0.5% year-on-year in September, with an expected increase of 0.2% and a 0.5% increase in the previous value.
European Markets
Bank of England chief economist Hugh Peel said on Friday that Britain's inflation remains stickier than expected, reinforcing the case for slowing the pace of monetary easing.
In a speech, Peel said the "lack of progress" in reducing inflation was "disappointing". He warned that persistently above-target inflation, coupled with the increased sensitivity of businesses and households to price movements, has the potential to create "self-sustaining inflationary dynamics." The salience of food prices has a direct impact on households' perceptions of inflation and, if not carefully managed, may further embed inflation expectations.
In his view, this requires "a more cautious pace in removing monetary policy restrictions to ensure that deflation continues to move towards the 2% target. While Peel reiterated that if the outlook develops as expected, a rate cut is still possible in the next year, he emphasized the importance of "guarding against the risk of cutting rates too quickly or too quickly."
Eurozone inflation edged higher in September, with overall CPI ending up rising by 2.2% year-on-year, up from 2% in August. .0%. The core indicator, which excludes energy, food, alcohol and tobacco, also rose to 2.4% from 2.3%.
The main driver of growth xmaccount.comes from the service industry, which contributes +1.49 percentage points to the annual growth rate, followed by food, alcohol and tobacco (+0.58 percentage points) and non-energy industrial products (+0.20 percentage points). Energy continued to be a drag, falling -0.03 percentage points.
Across the EU, The inflation rate was finally set at 2.6% year-on-year, up from 2.4% in August, with wide differences among member countries. Cyprus (0.0%), France (1.1%) and Italy and Greece (1.8%) have the lowest rates, while Romania (8.6%), Estonia (5.3%) and Croatia and Slovakia (4.6%) have the highest rates. Inflation fell in eight countries, stabilized in four and increased in 15 .
U.S. Market
Trump signed an executive order to impose a 25% tariff on imported medium- and heavy-duty trucks.
Trump: The United States may not provide "Tomahawk" to Ukraine; the meeting with Putin will be a "bilateral meeting"
Federal Reserve Mussallem: If employment faces more risks and inflation is under control, I may support the path of another interest rate cut.
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