The release of the U.S. labor market data last Friday showed a robust performance, with the non-farm payrolls (NFP) for May reporting an increase of 140,000, which is slightly below the previous month but surpasses the forecasted figures in Trading Central.
This solid labor market data indicates that the U.S. economy remains strong, leading market participants to believe that the Federal Reserve is unlikely to cut interest rates in the near future. Additionally, a phone conversation between U.S. President Donald Trump and President Xi Jinping has also impacted market sentiment. Their communication was described as smooth, and teams from both countries are expected to resume negotiations in London.
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This sentiment will likely affect market movements during the European trading session on Monday (June 9, 2025).
GOLD
The price of Gold (XAUUSD) decreased by $42.82 or 428.2 pips, settling at $3,309.53 per troy ounce during last Friday’s trading session. Today, Gold fell further to $3,293.48 per troy ounce before slowly recovering some of the losses.
The anticipation that the Federal Reserve will not cut interest rates soon places additional pressure on Gold prices. Moreover, Gold’s appeal as a safe haven is diminishing due to rising hopes for a U.S.-China trade agreement.
These sentiments are expected to continue influencing Gold’s movements in today’s trading.
OIL
Oil prices (CLS10) surged by $1.53 to reach $64.78 per barrel, marking the highest level in six weeks.
Expectations around a U.S.-China trade agreement have positively impacted Oil prices. If an agreement materializes, the risk of a global economic slowdown may decrease, potentially boosting Oil demand.
This positive sentiment is also likely to affect market conditions during today’s European trading session.
EURUSD
EURUSD fell by 476 points (47.6 pips), dropping to 1.13941 during trading last Friday. The strengthening U.S. dollar followed the release of NFP data and Trump’s conversation with Xi Jinping.
The previous day, EURUSD had risen to a five-week high after the European Central Bank (ECB) announced a rate cut but did not indicate that further cuts would happen soon.
Both sentiments are expected to continue influencing market movements during the European trading session, with potential stronger sentiments from the ECB.
GBPUSD
GBPUSD decreased by 400 points (40 pips), closing at 1.35251 during last Friday’s trading session, after reaching a peak not seen since February 2022. The robust U.S. dollar prompted profit-taking in GBPUSD, leading to a decline.
However, GBPUSD continues to be underpinned by positive sentiments regarding the solid condition of the U.K. economy and accelerating inflation. This situation suggests that the Bank of England (BoE) is unlikely to cut rates in the near future. This sentiment is expected to persist in influencing GBPUSD movements during the European trading session.
USDJPY
The release of NFP data combined with increasing chances of a U.S.-China trade deal has caused USDJPY to surge by 1.335 points (133.5 pips), reaching 144.838.
Robust labor market figures suggest that the Federal Reserve is unlikely to reduce interest rates soon. Furthermore, if a trade agreement is achieved, it would enhance the economic outlook for the United States. Both factors will continue to play a role in influencing USDJPY movements during the European trading session.
Nasdaq
Expectations surrounding a potential U.S.-China trade deal propelled the Nasdaq index to gain nearly 300 points, reaching 21,089 during last Friday’s trading. Positive sentiments also emerged from Trump’s discussion with Canadian Prime Minister Mark Carney.
The easing of trade war tensions and the hope for a deal are expected to maintain positive sentiment for Nasdaq during the European trading session.
