The market’s movement appeared relatively stable at the start of trading during the European session on Monday (December 15, 2025). However, some assets exhibited significant volatility. There have been no fundamental changes; market sentiment continues to be influenced by the monetary policy announcements made by the Federal Reserve last week.
As is well-known, the Fed reduced interest rates by 25 basis points, bringing the range to 3.5%-3.75%, and also resumed purchasing bonds as part of their quantitative easing (QE) program at a value of $40 billion.
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Additionally, the Fed released a dot plot indicating only one rate cut is expected next year. Nevertheless, due to signs of a weakening labor market in the United States, investors remain optimistic that the Fed will make 2 to 3 rate cuts in 2026.
This sentiment will continue to influence market movements today, alongside the release of economic data from the U.S. Below are data points from Trading Central:
- New York manufacturing index (December) at 20:30 WIB; forecast at 11 versus a previous 18.7.
ذهب
The price of Gold (XAUUSD) soared at the beginning of the European trading session, reaching a daily high of $4,350.50 per troy ounce. Compared to Friday’s closing, Gold increased by over $40 or 500 pips.
Gold continues to benefit from positive sentiment stemming from the policies implemented by the Fed, especially QE. Since the global financial crisis of 2008, the Fed’s QE has typically served as a catalyst for rising Gold prices.
Additionally, market participants remain hopeful that the Fed will opt for 2 to 3 interest rate cuts in 2026, despite Fed Chair Jerome Powell and colleagues projecting only one cut.
This sentiment will likely influence Gold’s movements in tonight’s trading session. If U.S. economic data is worse than the forecast, expectations for more aggressive cuts next year will strengthen, potentially leading to higher Gold prices.
زيت
Oil prices (CLS10) showed little movement at the start of the European session, trading within the range of $57.37 to $57.78. Oil prices are under pressure from positive developments in the Russia-Ukraine peace negotiations.
If the conflict between the two nations ends, oil supply from Russia to global markets is expected to increase, potentially lowering oil prices.
اليورو مقابل الدولار الأميركي
EURUSD exhibited volatility, trading between 1.17264 and 1.17449 at the onset of the European session, with an upward trend. EURUSD benefited from favorable sentiment due to the dollar’s weakness following the Fed’s rate cut and the introduction of QE.
Given this, EURUSD is likely to continue rising if today’s U.S. economic data falls short of forecasts.
الجنيه الاسترليني مقابل الدولار الأميركي
GBPUSD rebounded to 1.33871 after briefly dropping to 1.33544. This movement reflects the pressure on the dollar owing to the Fed’s policies. Conversely, market participants are also awaiting the Bank of England’s interest rate announcement this upcoming week.
This could lead to continued volatility in GBPUSD, with a potential increase if U.S. economic data underperforms forecasts.
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The significant pressure on the dollar is evident in the drop of USDJPY by 886 points (88.6 pips) to 154.933 at the start of the European session. This downward movement is driven by the monetary policy measures taken by the Fed last week.
On the other hand, market participants anticipate that the Bank of Japan (BoJ) will raise interest rates this Friday. These two factors open up the possibility of continued declines for USDJPY, with downward pressure potentially increasing if tonight’s U.S. economic data is worse than forecasted.
ناسداك
The Nasdaq reversed its direction at the beginning of the European trading session, reaching a daily high of 25,332. During the Asian session, Nasdaq had dropped to approximately 25,132, following a significant decline of 631 index points last Friday.
Although there has been a rebound, Nasdaq is still shadowed by negative sentiment as investors rotate sectors in the U.S. stock market. Investors are exiting stocks related to artificial intelligence (AI) that have surged this year, moving towards cyclical stocks sensitive to economic conditions. There is an expectation that the U.S. economy will improve following the Fed’s rate cut and QE measures.
This sentiment could further pressure Nasdaq in U.S. trading sessions.
