**Original Article Credit: Mitrade News Team**
*Source: [Mitrade Forex Live News](https://www.mitrade.com/insights/news/live-news/article-1-1090053-20250903)*
—
# Forex Market Update: September 3, 2025
The global Forex market continued its dynamic movement on September 3, 2025, influenced by a range of economic data releases, central bank announcements, and geopolitical developments. Traders closely monitored currency pairs as the market responded to evolving macroeconomic conditions, with particular attention given to the US dollar, euro, yen, and commodity-linked currencies amid shifting risk sentiment.
## Key Drivers of Forex Market Movements
### US Dollar (USD): Mixed Sentiment as Economic Data Proves Divisive
The US dollar experienced a volatile session as traders digested a mix of economic indicators:
– The latest Non-Farm Payrolls (NFP) report showed job growth slightly below expectations. While the headline number suggested ongoing resilience in the labor market, wage growth lagged projections, tempering optimism among dollar bulls.
– The ISM Manufacturing PMI remained in contractionary territory for the third consecutive month, raising concerns about the pace of US economic recovery.
– Federal Reserve speakers maintained a cautious tone, reiterating that future policy moves would be highly data-dependent. Several members cited the need to balance inflationary pressures with risks to economic growth.
Despite these mixed signals, the US dollar index (DXY) hovered near its recent highs, benefiting from its status as a safe-haven asset amid global uncertainty. The dollar’s performance against key counterparts, particularly the euro and yen, reflected ongoing divergences in growth and monetary policy outlooks.
### Euro (EUR): Struggles Amidst Weak Economic Indicators
The euro faced renewed pressure as eurozone economic data continued to underwhelm:
– The Eurostat release of the latest inflation numbers confirmed a persistent slowdown in price growth across major economies, with headline CPI well below the European Central Bank (ECB) target.
– German factory orders, a bellwether for the region’s manufacturing sector, declined for the fifth consecutive month, highlighting structural weaknesses within Europe’s industrial base.
– ECB policymakers adopted a cautious approach, with many signaling reluctance to consider rate hikes in the near future unless there is substantial evidence of inflationary persistence.
The EUR/USD pair spent much of the session below the 1.08 level, with traders remaining vigilant for further signs of economic deterioration or a shift in ECB rhetoric.
### Japanese Yen (JPY): Finding Support as Safe-Haven Demand Rises
The Japanese yen found support against both the dollar and the euro as risk sentiment soured:
– Investors rotated into traditional safe-haven assets such as the yen, Swiss franc, and gold amid renewed geopolitical tensions in the Asia-Pacific region.
– Bank of Japan (BoJ) Governor Ueda signaled that policy normalization would remain slow, but ongoing yen weakness prompted discussion of potential interventions.
– Data releases from Japan showed modest improvement in household spending, but inflation remains stubbornly below the BoJ’s 2 percent target.
USD/JPY traders observed resistance near the 149 level, with profit-taking and risk aversion providing near-term support for the Japanese currency.
### British Pound (GBP): Cautious Optimism Ahead of Bank of England Meeting
The British pound traded in a narrow range, bolstered by hawkish remarks from Bank of England (BoE) officials:
– While inflation in the UK has tempered, wage growth remains sticky, fueling concerns about future price pressures.
– Market participants looked ahead to the upcoming BoE policy meeting, with many expecting a pause in rate hikes followed by a prolonged restrictive stance.
– Political stability in the UK lent additional support to sterling, reducing downside volatility.
GBP/USD hovered near the 1.2600 region, as traders balanced optimism over a resilient UK economy against the prospect of protracted monetary tightening.
### Commodity-Linked Currencies:
Read more on GBP/USD trading.