The recent release of the producer price index (PPI) data from the United States has resulted in a surge for the dollar during Thursday’s trading session. The PPI for July showed an increase of 3.3% year-on-year (YoY), significantly surpassing the forecasted figure of 2.5% by Trading Central and the previous month’s rate of 2.4%.
Additionally, core inflation noted a growth of 3.7% YoY, far exceeding the expected 2.7% and the June increase of 2.6%.
Recommended
Recommended
Recommended
Recommended
This sharp rise in PPI could lead to accelerating inflation in the consumer price index (CPI). This situation may prompt the Federal Reserve to exercise caution regarding interest rate cuts. Market sentiment will likely continue to reflect these influences during European trading on Friday (15/8/2025).
GOLD
The price of gold (XAUUSD) fell by more than $20 or 200 pips, reaching $3,335.10 per troy ounce during Thursday’s trading, pressured by the strengthening US dollar following the PPI data release.
Such a high PPI diminishes expectations for aggressive interest rate cuts by the Fed (50 basis points or 0.5%). Additionally, the probability of a rate cut by the Fed decreased to 92% from a previous 100%, according to FedWatch data.
This sentiment is expected to continue influencing gold’s movement in the European trading session.
OIL
Oil prices (CLS10) increased by $1.18 to $63.91 per barrel during Thursday’s trading. The rise followed a statement from US President Donald Trump, who warned Russia of “severe consequences” if it does not halt its war with Ukraine. President Trump is scheduled to meet with Russian President Vladimir Putin in Alaska today.
This sentiment is likely to impact oil’s performance in the European trading session.
EURUSD
The reduction in expectations for a 50-basis-point interest rate cut led to a rise in the dollar on Thursday, causing the EURUSD pair to fall by 562 points (56.4 pips) to 1.16458.
With no significant economic data scheduled for release from the eurozone today, the potential for continued pressure on EURUSD remains in the European trading session.
GBPUSD
The GBPUSD pair dropped by 473 points (47.3 pips) to 1.35239 during Thursday’s trading. The decrease was attributed to profit-taking activities following a sharp increase earlier this month.
The GBPUSD is still benefiting from positive sentiment regarding the Bank of England (BoE) not expected to cut interest rates soon. Given that the Fed is projected to reduce rates by 25 basis points (0.25%), a rebound for GBPUSD could be anticipated.
USDJPY
The USDJPY pair rose by 366 points (36.6 pips) to 147.671 during Thursday’s trading after experiencing a drop to 146.212. The USDJPY reversed its downtrend following the PPI data release from the United States.
On the following day, the USDJPY retraced 627 points (62.7 pips) to 147.044 after data from Japan revealed a quarterly growth in gross domestic product (GDP) of 0.3% for Q2 2025, exceeding the forecast of 0.2% and growth from the prior quarter at 0.1%.
This data release has led market participants to speculate that the Bank of Japan (BoJ) may consider raising interest rates soon. This sentiment will likely continue to impact USDJPY movements in European trading.
NASDAQ
The Nasdaq index fell by 35 points to 23,891 during Thursday’s trading due to diminished expectations for a 50-basis-point interest rate cut by the Fed. The Nasdaq, which remains near its all-time high, faced profit-taking.
There is a possibility that profit-taking could extend into the European trading session due to the Nasdaq’s elevated position.
