The United States (US) and the European Union reaching a trade agreement triggered significant market movements at the start of trading on Monday (July 28, 2025).
The newly established agreement imposes a 15% import tariff on the European Union, starting from August 1. This percentage is a decrease from the previous 30%. As the largest trading partner of the United States, this trade deal helps avoid a trade war that could harm the global economy.
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Such developments have improved market sentiment and affected market movements during European trading sessions.
GOLD
The price of Gold (XAUUSD) has dropped for three consecutive days, closing Friday’s trading at $3,336.98 per troy ounce. In this span, Gold has fallen more than $94, equivalent to 940 pips.
Today’s trading saw Gold gap down to around $3,323.12 per troy ounce before bouncing back to approximately $3,343 per troy ounce.
With better market sentiment, the appeal of Gold as a safe haven has decreased, leading to price pressure. This trend is expected to continue influencing Gold’s movement during the European trading session.
Oil
Oil prices (CLS10) fell by more than $1 to $65.05 per barrel during Friday’s trading. However, this morning, it rebounded to $65.61 per barrel.
Oil received a positive sentiment boost from the US-EU trade agreement as it mitigates the risks of a potential trade war. This condition enhances the overall outlook of the global economy, indicating that the demand for Oil could remain high.
This positive sentiment is likely to impact Oil’s movements during the European trading session.
EURUSD
EURUSD recorded a slight decline to 1.17414 during Friday’s trading, but today it briefly rose to 1.17704 before dropping back to 1.17399.
The US-EU trade agreement created volatility in the EURUSD currency pair today. While this trade deal provided a positive sentiment for the euro, the US dollar also stands to benefit. The potential improvement in the US economy contributes to the volatility of the EURUSD.
As a result, EURUSD movements remain volatile, with significant pressure likely persisting.
GBPUSD
GBPUSD has decreased for two consecutive days, closing Friday’s trading at 1.34379. Over this two-day period, this currency pair has declined by 1.374 points (137.4 pips). The pressure on GBPUSD is attributed to expectations of an imminent interest rate cut by the Bank of England (BoE).
This sentiment will likely continue to influence GBPUSD movements during the European trading session.
USDJPY
USDJPY increased by 883 points (88.3 pips) to 147.650 on Friday, while today, it climbed to 148.017. As previously mentioned, the US-EU trade agreement has provided a positive boost to the dollar.
Given that the European Union is the largest trading partner of the United States, avoiding a trade war improves the economic outlook for the US. This sentiment is expected to affect USDJPY’s performance during the European trading session.
Nasdaq
The US-EU trade agreement has positively influenced the American stock index, with Nasdaq hitting an all-time high of 23,582 today.
Market participants’ risk appetite has increased in response to this trade agreement, thus positively impacting Nasdaq.
