UK Summer Bank Holiday (25-26 August 2025)

Global markets entered the week as investors reassessed the Federal Reserve's outlook after a surprisingly weak US employment report signaled further deterioration in labor market conditions. The Dollar Index fell toward a two-month low, while gold and silver held onto strong weekly gains as expectations for a September Fed rate hike dropped sharply. At the same time, uncertainty surrounding the Strait of Hormuz continued to influence oil prices and global inflation expectations, with Iran and Oman reporting progress toward a transit agreement but no broader resolution yet reached.

Global markets opened the week with the dollar under pressure after unexpectedly weak U.S. employment data reduced expectations for a September Federal Reserve rate hike. 

Global markets traded cautiously ahead of the U.S. Nonfarm Payrolls report, with recent weak labor data keeping pressure on the dollar and lowering expectations for a September Federal Reserve rate hike.