The President of the United States, Donald Trump, has once again raised tariffs on imports from nations that have not reached a trade agreement. This time, products from both the European Union and Mexico face a 30% tariff increase.
Currently, the European Union and Mexico are focusing on negotiations rather than retaliatory tariff hikes. This is due to Trump’s import tariff policy set to take effect on August 1, providing a window for talks until the end of the month.
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This sentiment is expected to influence market movements during the European trading session on Monday (July 14, 2025).
GOLD
The price of Gold (XAUUSD) surged over $18 or 180 pips to reach $3,373.99 per troy ounce, marking the highest level in three weeks. Following this, Gold briefly dipped to $3,353.72 per troy ounce before experiencing a rebound.
This price movement indicates an increased demand for Gold as a safe haven due to the heightened risk of a trade war. However, Gold’s ascent is somewhat restrained as the countries facing tariff increases are actively pursuing negotiations.
Nevertheless, the growing threat of a trade conflict may still yield positive sentiment towards Gold.
OIL
Oil prices (CLS10) rose over $1.8 to $68.69 per barrel last Friday, and this morning saw a further increase to $68.88 per barrel before dropping to $68.39.
The oil price increase is attributed to rising demand outpacing supply, alongside the potential for the United States to impose sanctions on the Russian energy sector, which adds to the positive sentiment around Oil and will continue to influence trading in the European session.
EURUSD
The EURUSD pair was on a downward trend last week, and this morning it gapped down to around 1.16631. Although there was a brief rebound, by midday, EURUSD had once again declined, hovering around that level.
The EURUSD faced pressure following Trump’s tariff increase on imports from the European Union. This negative sentiment is likely to persist in the European trading session.
GBPUSD
GBPUSD plummeted last week and today further declined to 1.34692. The pair is under scrutiny after data revealed that the United Kingdom’s economic growth (Gross Domestic Product/GDP) contracted for two consecutive months in April and May.
This suggests a deteriorating UK economy for the second quarter, leading to expectations that the Bank of England may cut interest rates soon.
This sentiment is expected to continue influencing GBPUSD movements during the European session.
USDJPY
USDJPY surged by 1.239 points (123.9 pips) in trading last Friday, reaching 147.407. Today’s trading has seen USDJPY fluctuate within a range of 146.850 – 147.571. This movement signifies a strengthening US dollar, as the yen remains under pressure following Trump’s imposition of a 35% import tariff on Japan last week, effective August 1.
This sentiment will likely continue to affect USDJPY movements in the European session.
Nasdaq
The Nasdaq experienced a gap down to 22,826 in today’s trading after suffering two consecutive days of losses up to last Friday. The increasing risks of a trade war have led to profit-taking activity on the Nasdaq.
Given its proximity to recent highs, there is potential for further profit-taking to persist in the European trading session.
