US Session’s Market Drivers: Investors Brace for PMI Data as Dollar Softens

The US dollar kicked off the trading week of September 22, 2025, on a weaker note, pulling back from its recent gains after the Federal Reserve’s latest moves. Investors adopted a cautious stance, eyeing a slew of key economic data and upcoming remarks from Fed officials. With global markets in a holding pattern, Tuesday’s release of preliminary business activity data is set to steer the direction of currencies, oil, and precious metals.

The dollar’s retreat gave a lift to other major currencies. The euro climbed close to the 1.1800 level, buoyed by expectations for manufacturing and services activity reports from Germany and the broader Eurozone. Similarly, the British pound surged past the 1.3500 mark, supported by the dollar’s dip and anticipation for the UK’s own business activity data. Meanwhile, the Australian dollar snapped a three-day slide, nearing the 0.6600 level as investors awaited Australia’s manufacturing and services updates.

The Japanese yen also gained ground, with the dollar-yen pair slipping below the 148.00 mark after a brief pullback. Japan’s upcoming business activity reports are expected to provide further clues about the yen’s path, as the country’s central bank maintains its steady policy stance. Across markets, focus remains on these critical data points, which could signal whether global economic momentum is holding up or faltering.

In commodities, crude oil prices faced renewed pressure, testing monthly lows near $61.00 per barrel as concerns about oversupply overshadowed geopolitical tensions. Gold, however, shone brightly, hitting record highs near $3,730 per ounce, fueled by expectations of further rate cuts and mixed movements in US Treasury yields. Silver also rallied, nearing $44.00 per ounce for the first time in over a decade, riding the wave of optimism in precious metals. As markets await Tuesday’s data, the stage is set for potential shifts in sentiment and price action.