Fed Rate Cut and Trump-Xi Meeting Drive Markets This Week - 27.10.2025

Senior Analyst

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Todays’ Market Summary

Asian and G10 FX were cautious ahead of U.S. CPI and the Fed
Bitcoin Price: Bitcoin traded around $110k–$113k this week
Markets rallied on the soft CPI read and companies reporting earnings
Oil: New U.S. sanctions on Rosneft and Lukoil pushed oil up sharply
Spot gold traded around $4,110–$4,140 per oz after pulling back from a record

Top daily news

U.S. inflation (CPI) for September surprised to the downside for many forecasters, headline and core CPI both printed about 3.0% year on year. That pushed markets to price a near 2 bp Fed cut at the Oct. 29 meeting. At the same time, the White House announced that President Trump will meet Xi Jinping on the sidelines of APEC in Seoul on Oct. 30. New U.S. sanctions on Russia’s big oil firms (Rosneft and Lukoil) also shocked the oil market and lifted crude prices. Markets are now watching Fed wording, the Trump–Xi meeting, and oil-supply headlines for the next big moves.

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Forex news

Asian and G10 FX were cautious ahead of U.S. CPI and the Fed. The dollar was steady overall as markets moved to price in Fed easing next week.

Live dollar index, the dollar index was little changed on the day but finished the week a touch firmer as traders priced the Fed cut.
EURUSD: the euro slipped from mid-October highs and traded around $1.16 as U.S. yields and global risk weighed on the pair.
GBPUSD: sterling hovered near $1.33, testing support after mixed UK data and a risk-on move in global stocks.
USDJPY and AUDUSD: the yen weakened as Japanese stocks rallied and the dollar pushed higher; the Aussie moved with risk appetite and commodity flows.

Note: FX action this week will follow the Fed statement, any BoJ/ECB/BoC cues, and headlines from the Trump–Xi meeting.

Stock Market news

Markets rallied on the soft CPI read and companies reporting earnings that exceeded analyst expectations.

Dow Jones Index: closed above 47,000 for the first time, about 47,207 on the close.
Nasdaq Index: rallied and set fresh record closes, Nasdaq Composite around 23,204–23,260 area.
S&P 500 Index: also hit record close near 6,791 -6,800.
Nikkei Index: surged on local strength and political news, trading near 49,300.
Hang Seng Index: gained, finishing around the 26,100–26,200 area.
Australian Stock Index: ended the week a little softer, around 9,019 after profit-taking in miners and banks.

Cooler U.S. inflation plus strong earnings equals more appetite for stocks, at least short term. Watch for any change in Fed messaging or the oil story that could shift sentiment.

Commodity Market news

Oil: New U.S. sanctions on Rosneft and Lukoil pushed oil up sharply during the week before some profit-taking. Brent and WTI both jumped; headline Brent moved into the mid-$60s, and WTI into the low $60s on the shock supply talk. This is the single biggest commodity story: sanctions created a fast squeeze in market sentiment about near-term supply.

Gold Market News

Spot gold traded around $4,110–$4,140 per oz after pulling back from a record earlier in the week. Weak CPI helped support gold, but profit-taking pushed it off the peak. Reuters spot quotes showed gold near $4,118 with futures in the same area.

Gold is reacting to three things right now

Fed easing hopes, makes non-yielding gold more attractive,
Geopolitics - sanctions, Trump–Xi tensions, and
Profit-taking after a big run earlier in October. Lower real rates remain a key gold tailwind if the Fed signals easing.

After a short correction from record highs, gold is consolidating. If Fed messaging is dovish, gold has room to retest highs; if policy looks less easy, gold could fall back toward the $4,000 area.

Crypto

Bitcoin Price: Bitcoin traded around $110k–$113k this week, with intraday strength tied to risk-on flows and hopes for improved U.S.–China relations. CoinDesk and other market feeds show BTC back above $110k on the week. BTC moves now react to macro - rates, dollar, stocks and big flows: institutional, ETF-related. This week, risk appetite and the APEC meeting talk helped bids.

BTC is range-trading after a strong run; a break above the consolidation range would likely attract large follow-through buying.

Ethereum Price: ETH was trading roughly $3.8k–$4.0k, inside a clear consolidation range that traders are watching closely. CoinDesk and Yahoo price pages show ETH around the high-$3k to low-$4k zone. ETH is consolidating between $3.5k support and around 4.1k resistance. Macro easing expectations favor risk assets and could support ETH; but until a decisive breakout or breakdown, volatility will likely stay compressed.

Note: Bitcoin Core released v30.0 and disclosed several low-severity CVEs fixed in recent updates (CPU DoS from unconfirmed tx processing; disk/log filling issues; one rare 32-bit crash case). Node operators should upgrade to v30.0 / v29.2 / v28.3 as recommended to close these issues. These are low-severity but important maintenance patches.

Crypto is moving with stocks and macro news. Security fixes were released and should be applied, but they are not a market-breaking event.