The sell-off of government bonds in Europe took many market players by surprise in trading on Tuesday. High volatility has gripped the market and is likely to persist through trading on Wednesday (September 3, 2025).
Fiscal issues and debt concerns triggered this sell-off. As a result, the yield on 30-year bonds in France and Germany surged to their highest levels since 2011. Meanwhile, the yield on 30-year UK bonds reached its peak since 1998.
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This sentiment is expected to continue influencing market movements today, in addition to the release of various economic data. Here are the upcoming data points from Trading Central:
- Eurozone Producer Price Index (PPI) (year-on-year/Aug) at 16:00 WIB; forecast 0.3% vs previous 0.6%
- US Job Openings (JOLTs) (Jul) at 21:00 WIB; forecast 7.3 million vs previous 7.44 million
GOLD
Gold prices (XAUUSD) hit an all-time high of $3,546 per troy ounce at the start of today’s trading. Compared to the closing price on Tuesday, Gold rose more than $13 or 130 pips, surpassing the previous record of $3,540 set yesterday.
As of Tuesday, Gold had increased for six consecutive trading days, supported by expectations of an interest rate cut by the Federal Reserve. According to data from CME Group’s FedWatch tool, market participants now anticipate that the Fed may cut rates twice this year, once this month and again in December.
Furthermore, recent turbulence in the European financial markets has provided a positive sentiment for Gold. This sentiment is expected to continue influencing Gold during the European trading session.
OIL
Oil prices (CLS10) rose by $1 to $65.60 per barrel, reaching a three-week high.
The increase in oil prices is attributed to Ukraine launching intensive airstrikes targeting Russian energy facilities. There are concerns about potential supply disruptions from Russia, leading to two consecutive days of price increases.
This sentiment will likely continue affecting oil movements during the European trading session.
EURUSD
The EURUSD pair dropped 694 points (69.4 pips) to 1.16392 during Tuesday’s trading. The sell-off in French and German bonds created a negative sentiment for the EURUSD pair.
The upcoming PPI data release could impact the EURUSD movement during the European trading session. If the data is reported lower than the forecast, the EURUSD may come under further pressure. However, the primary focus will be on bond yield movements; another increase could lead to a further decline in the EURUSD.
GBPUSD
The sell-off affecting the UK bond market caused the GBPUSD to plummet by 1,494 points, or nearly 150 pips, to 1.33896 during trading on Tuesday.
There is potential for further declines in GBPUSD during the European session if the UK bond market experiences additional sell-offs.
USDJPY
The USDJPY pair rose by 1.160 points (116 pips) to 148.261 during trading on Tuesday. The yen faced renewed pressure after Deputy Governor Ryozo Himino of the BoJ adopted a less hawkish stance.
This perspective has led market participants to believe that interest rates may not be raised in the near term. This sentiment may continue to influence USDJPY movements in the European trading session.
NASDAQ
The Nasdaq index initially fell to 23,026 before trimming its losses to close Tuesday’s trading at 23,379. Gains in Alphabet’s shares helped the Nasdaq rebound.
However, the turbulence in the European bond markets is still weighing on stock markets. As a result, there is potential for the Nasdaq to remain under pressure during the European trading session.
