In the early trading session on Wednesday (12/10/2025), market participants are primarily focused on the Federal Reserve’s interest rate decision expected to be announced early Thursday morning. The Job Openings and Labor Turnover Survey (JOLTs) data released yesterday showed 7.67 million job openings in the United States for October, surpassing the forecast of 7 million and slightly above the previous figure of 7.658 million. This number indicates a strengthening in the U.S. labor market, leading traders to speculate on how aggressively the Fed might cut interest rates in 2026.
However, market sentiment remains optimistic that the Fed will indeed announce a rate cut on Thursday morning, backed by core PCE inflation data that met expectations.
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These sentiments are expected to continue influencing market movements during the European trading session. Significant data releases to watch for will be presented early Thursday. Here are the details from Trading Central:
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Federal Reserve interest rate announcement (Thursday, 12/11/2025) at 2:00 AM WIB; forecast 3.75% vs. previous 4%
GOLD
Gold prices (XAUUSD) rose by US$17.53 to US$4,207.90 per troy ounce in trading on Tuesday, even as the JOLTs data significantly exceeded predictions, indicating a stronger labor market. The optimism surrounding the Fed’s potential rate cut early Thursday remains the primary driver behind the increase in Gold prices.
This mix of opposing sentiments may lead to volatile movements in Gold during the European session, especially with the market’s primary focus on the FOMC announcement early Thursday. There is a possibility that Gold could experience profit-taking.
OIL
Oil prices (CLS10) fell by US$0.45 to US$58.38 per barrel, marking a two-day decline. This pressure arises from developments in the Russia-Ukraine peace negotiations and increasing concerns about oversupply, particularly after reports indicated that global oil production is recovering in various regions.
These sentiments are likely to continue to weigh on Oil during the European session.
EURUSD
The EURUSD pair dropped by 105 points or 10 pips to 1.16239 after previously climbing to 1.16573 in the last trading session. The strong JOLTs data indicating improvements in the labor market led to a strengthened U.S. dollar, causing the EURUSD to reverse direction.
In the absence of significant data releases from the Eurozone, the EURUSD movements during the European session will still be largely influenced by the dynamics of the U.S. dollar. There may still be downward pressure on EURUSD.
GBPUSD
The GBPUSD followed a similar pattern to the EURUSD, briefly rising to 1.33558 before closing down 233 points or 23 pips to 1.32924. The strengthening of the U.S. dollar due to better-than-expected JOLTs data was the primary factor for this decline.
With no significant data releases from the UK, the GBPUSD will remain sensitive to the U.S. dollar’s direction during the European session, indicating that pressure on GBPUSD remains quite strong.
USDJPY
The USDJPY pair increased by 968 points or 96.8 pips to 156.819, marking three consecutive days of gains. The U.S. dollar strengthened after the solid JOLTs data, while the yen continues to face pressure from weaker economic data in Japan, raising doubts about the potential for a Bank of Japan (BoJ) interest rate hike.
These sentiments are expected to continue supporting USDJPY’s ascent during the European session.
NASDAQ
The Nasdaq index fell by 31 points to 25,675, recording a two-day decline. Profit-taking ahead of the Fed’s interest rate decision is the primary reason for this drop. The market’s attention today is fully directed towards the FOMC announcement early Thursday.
This sentiment is likely to continue impacting the Nasdaq during the European session.
