On Wednesday, the market paid close attention to the slowdown in the US producer price index (PPI). Despite the lack of significant movement, the US dollar remained robust. Market participants are eagerly awaiting the release of the US consumer price index (CPI) later today.
The CPI will indicate whether the Federal Reserve will adopt an aggressive approach in reducing interest rates. The PPI serves as a leading indicator for the CPI, suggesting the possibility of a similar deceleration in the CPI. This sentiment is expected to influence market movements during the European trading session on Thursday, September 11, 2025.
Recommended
Recommended
Recommended
Recommended
Here are the data points scheduled for release tonight according to Trading Central:
- ECB interest rate announcement at 19:15 WIB; forecast at 2.15% compared to the previous 2.15%
- US CPI (year-on-year/August) at 19:30 WIB: forecast at 2.8% vs previous 2.7%
- US Core CPI (year-on-year/August) at 19:30 WIB: forecast at 3.1% compared to the previous 3.1%
GOLD
Gold (XAUUSD) price increased by $14.49 or 144.9 pips to settle at $3,640.38 per troy ounce on Wednesday. The yellow metal was able to maintain its gains after the PPI data for the US, which grew by 2.6% year-on-year (YoY) in August, came in significantly lower than the Trading Central forecast of 3.6% YoY and the previous month’s 3.2% YoY.
However, Gold did not display any substantial movement and faced a correction today. This indicates that market players are awaiting the CPI data release. Considering the PPI’s role as a leading indicator for the CPI, there is a chance that the CPI will also indicate slowed growth, resulting in continued positive sentiment surrounding Gold.
OIL
Oil prices (CLS10) rose by nearly $1 to $64.06 per barrel during Wednesday’s trading session.
The oil market received a boost after reports of Israel’s attack on Hamas in Qatar, a significant oil exporter, raising concerns over potential supply disruptions.
Yet, the oil stock data released last night from the US indicated an increase. Thus, there is potential for profit-taking in oil during the European trading session.
EURUSD
Profit-taking actions ahead of the US CPI data release affected the EURUSD, resulting in a drop of 151 points (15.1 pips) to 1.16922 during trading on Wednesday. Market participants are also looking forward to the European Central Bank’s interest rate announcement tonight.
As a result, EURUSD is expected to remain volatile, although positive sentiment is likely to maintain its dominance.
GBPUSD
GBPUSD closed trading flat at 1.35249 on Wednesday after briefly rising to 1.35639. The release of US PPI data continues to weigh on the US dollar. The expectation that the Fed may cut interest rates quite aggressively has strengthened following the PPI results.
Similar to EURUSD, positive sentiment is expected to support GBPUSD in the European trading session.
USDJPY
USDJPY experienced considerable volatility, closing trading on Wednesday at 147.386. The potential for further turbulence remains, and the direction of USDJPY is likely to become clearer following the CPI data release tonight.
During the European session, negative sentiment is expected to dominate this currency pair.
Nasdaq
Nasdaq slightly declined to 23,857 on Wednesday after briefly rising to 24,036, coming close to its all-time high. The drop in Nasdaq was triggered by profit-taking activities.
Growing market optimism regarding the Fed’s potential aggressive interest rate cuts continues to offer positive sentiment to the stock index, providing a chance for Nasdaq to rebound during the European session.
