Markets Slip as Powell Warns on Inflation Risks; Gold Near Record Highs - 25.9.2025

The live dollar index rose slightly to 97.36 after touching its lowest level in nearly a week, as Powell avoided signaling any aggressive easing.The EUR/USD slipped 0.1% to 1.1800, while GBP/USD also lost 0.1% at 1.3510. The yen weakened, with USD/JPY climbing 0.2% to 147.88. 

In Australia, the AUD/USD gained 0.3% to 0.6620 after headline inflation came in hotter than expected, complicating the Reserve Bank’s upcoming policy call. Meanwhile, New Zealand’s dollar held steady as Anna Breman was named the country’s next central bank governor.

Asian shares followed Wall Street lower after Powell said equity valuations looked fairly high. Japan’s Nikkei 225 fell 0.33%, Australia’s ASX 200 lost 0.61%, and South Korea’s Kospi dipped 0.11%. 

However, defense stocks in Seoul outperformed, boosted by U.S. commitments to NATO support for Ukraine.

Hong Kong’s Hang Seng Index was flat, with Alibaba jumping over 6% after unveiling a new AI model and signaling bigger investment in artificial intelligence. In the U.S., the S&P 500 slipped 0.55%, the Nasdaq dropped almost 1%, and the Dow edged down 0.19%, with tech stocks leading the pullback.

Oil prices extended gains after U.S. inventories dropped more than expected and a deal to resume Kurdish exports stalled. Brent crude rose 0.4% to $67.88, while WTI gained 0.4% to $63.68. The API reported a draw of 3.82 million barrels in U.S. crude stocks, stronger than forecasts.

Geopolitical risks added support, with the U.S. signaling tougher measures against Russia and reports suggesting Moscow could restrict diesel exports.

BTC/USD bounced 0.5% to $112,628 after sliding to a two-week low. Powell’s comments added uncertainty over the Fed’s October decision, keeping pressure on risk assets.

ETH/USD struggled to hold above $4,200, trading below its key moving average. Drop under $4,125 could push Ethereum toward the $4,000 or even $3,880 level, though a rebound above $4,315 could open the way back to $4,450–$4,550.