The recent announcement of monetary policy changes by the Federal Reserve last week triggered significant volatility in financial markets, which continued into trading on Monday (December 15, 2025). The Federal Reserve lowered interest rates by 25 basis points to a range of 3.5%-3.75% and resumed its bond purchasing program (quantitative easing/QE) with a budget of $40 billion.
Additionally, the Fed released a dot plot indicating only one interest rate cut is expected next year. Despite this, with signs of a weakening labor market in the United States, market participants are optimistic that the Fed may reduce rates two to three more times in 2026.
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This sentiment will likely continue to influence market movements during today’s trading.
GOLD
Gold prices surged to $4,353 per troy ounce last Friday, nearing an all-time high before experiencing a profit-taking pullback that closed trading at $4,299.91 per troy ounce.
Today, Gold has risen again to around $4,329.87 per troy ounce, showcasing strong momentum fueled by the Fed’s policies, especially the QE initiative. Historically, since the global financial crisis of 2008, the Fed’s QE measures have generally driven Gold prices upward. This ongoing sentiment suggests potential further gains for Gold in today’s European trading session.
OIL
Oil prices (CLS10) declined by $0.39 to $57.50 per troy ounce during Friday’s session. Oil has seen a decrease for two consecutive days as traders perceive positive developments from the ongoing peace talks between Russia and Ukraine.
Should the conflict between the two nations conclude, it could lead to an increase in global oil supplies from Russia, which may push down oil prices.
EURUSD
EURUSD experienced a slight uptick to 1.17397 last Friday following a volatile period. However, today’s trading sees EURUSD trending downward due to profit-taking activity.
Nonetheless, this currency pair remains close to its highest level in over two months, supported by the pressure on the US dollar following the Fed’s interest rate cuts and QE measures. This situation offers the potential for a rebound in EURUSD during the European trading session.
GBPUSD
GBPUSD fell by 112 points (11.2 pips) to 1.33694 in last Friday’s trading. The decline in GBPUSD has persisted into today, dropping to 1.33544. The pair was pressured following data showing the UK’s economic growth (Gross Domestic Product/GDP) contracted by 0.1% month-on-month in October, which was below the forecast in Trading Central of 0%.
Given that GBPUSD is still near its 2-month high, there remains potential for profit-taking, which could further lower GBPUSD.
USDJPY
USDJPY rose by 318 points (31.8 pips) to 155.819 in trading last Friday. However, today, it has decreased by 63 pips to 155.181. This movement indicates the US dollar remains under pressure as a result of the Fed’s monetary policies.
Conversely, market participants are watching for the Bank of Japan (BoJ) to potentially raise interest rates this Friday. The interplay between these two factors might lead to continued declines in USDJPY.
Nasdaq
The Nasdaq index plunged by 631 points to 25,202 during trading last Friday, marking its most significant daily decline since November 20 and reaching its lowest level in two weeks.
This drop is attributed to investors rotating sectors within the US stock market, shifting away from previously booming artificial intelligence (AI) stocks to cyclical stocks sensitive to economic changes. There are expectations that the US economy may improve following the Fed’s rate cuts and QE.
In today’s trading, the Nasdaq briefly continued its downward trajectory to 25,132 before rebounding to around 25,283. Despite this recovery, the negative sentiment from sector rotation and concerns about an AI bubble still loom over the Nasdaq.
