Market Sector Scanner: Fed Rate Cut Lifts Stocks to Records as Gold Hits New Highs
The Fed’s 0.25% rate cut and dovish outlook drove U.S. stocks and gold to fresh records. USD/JPY, GBP/JPY, and EUR/USD stay range-bound, while key U.S. data and global manufacturing reports this week could spark higher volatility and break the dollar’s narrow range.
Markets were steady as investors awaited key central bank moves. U.S. retail sales beat forecasts, U.K. inflation stayed high at 3.8%, and the Bank of England kept rates unchanged, saying cuts need clear proof of easing prices. The U.S. Federal Reserve then cut rates by 0.25% and hinted at two more cuts before late 2025, citing slower job growth and a softer labor market while noting inflation remains elevated. The dollar dipped then rebounded, and U.S. stocks hit record highs on the cut and strong tech gains. In Japan, the Bank of Japan held rates but surprised by planning slow sales of its large ETF and J-REIT holdings; the Nikkei briefly fell then recovered as Governor Kazuo Ueda left the door open for a rate hike if economic and inflation trends stay favorable.
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Key Events Calendar for September 22 – 26
Market Sector Scanner
Forex Market
Last Week Recap
After the U.S. Federal Reserve’s 0.25% rate cut and dovish comments from Fed Chair Powell, USD/JPY briefly slipped below 146 support. However, with few new sellers emerging, the market rebounded and ended the week near the middle of its recent 146–149 range.
Technical Picture
Bollinger Bands remain flat and narrow, and the 10-day moving average is also flat, suggesting that range-bound trading conditions are likely to persist in the short term.
Outlook This Week
The rebound from support is encouraging, but with the Bank of Japan moving closer to a potential rate hike, further upside may be limited. Range trading between 146 and 149 remains the preferred strategy.
GBP/JPY
Last Week Recap
GBP/JPY moved above the key 200 resistance as U.K. inflation stayed high and the Bank of England kept interest rates unchanged. However, a rebound in the U.S. dollar pressured the pound, pulling the pair back below 200 by the end of the week.
Technical Picture
The upper Bollinger Band acted as resistance and triggered a sell signal on Thursday, leading to Friday’s sharp pullback. GBP/JPY has now slipped below the 10-day moving average, suggesting it may struggle to regain and hold above the 200 level.
Outlook This Week
The reversal back below 200 and the close under the 10-day moving average are bearish signals, making selling opportunities the preferred strategy for the week ahead.
EUR/USD
Last Week Recap
EUR/USD started the week strongly as traders bought ahead of the expected FOMC rate cut. Although the cut was widely anticipated, the market became overbought and profit-taking set in, leaving only a small weekly gain as the U.S. dollar recovered.
Technical Picture
Prices briefly moved above the upper Bollinger Band, which acted as resistance and triggered a sell signal when the market slipped back below it. With prices now also below the 10-day moving average, further gains may be difficult in the near term.
Outlook This Week
Last week’s price action was somewhat disappointing and indicates that range trading is now more likely in the short term, with the recent uptrend showing signs of having broken.
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Equities
U.S. Stock Market
Last Week Recap
The Nasdaq faced selling pressure ahead of the FOMC meeting as profit-taking pulled prices back below the upper Bollinger Band. However, a dovish Fed statement and strong support at the 10-day moving average reignited buying, lifting the index to new record highs as demand for technology stocks remained strong.
Technical Picture
The market has returned to the upper Bollinger Band as strong equity demand continues, indicating short-term overbought conditions. At the same time, the 10-day moving average continues to point higher, confirming a strong medium-term uptrend.
Outlook
With U.S. monetary policy still supportive for equities, medium-term traders may look to buy on pullbacks toward the 10-day moving average, while short-term traders could consider selling if the market slips back below the upper Bollinger Band.
Commodities
Gold
Last Week Recap
Gold posted new record highs again after the U.S. interest rate cut, with a volatile week showing that demand for the metal stayed strong. Buyers kept stepping in even when prices pulled back, helping gold hold firm despite the big recent rise.
Technical Picture
The uptrend remains very strong, with prices holding above the 10-day moving average as buyers stay aggressive. Bollinger Bands remain wide, reflecting high volatility and suggesting that further gains are possible.
Outlook This Week
There is a growing chance of short-term weakness. While following the uptrend can still be profitable, waiting for a break below the 10-day moving average to sell may offer the best near-term trading opportunity given how far prices have already climbed.
Last week’s central bank meetings brought no major surprises, but volatility could rise as markets position for the next policy decisions. Key data include manufacturing reports from Europe, the U.K., and the U.S., plus Thursday’s U.S. durable goods orders and GDP and Friday’s Core PCE inflation and Michigan consumer sentiment. With summer trading over, volatility is set to pick up and the U.S. dollar’s narrow range may soon break.
