The market exhibited considerable volatility at the start of the European trading session on Wednesday (March 19, 2025), as investors awaited the Federal Reserve’s monetary policy announcement. Typically, the market remains relatively stable leading to the Fed’s announcements, but this time the fluctuations hint at the possibility of larger movements ahead.
The Fed is set to unveil its monetary policy on Thursday at 1:00 AM WIB. A series of U.S. economic data have indicated signs of a slowdown, prompting the market to speculate that the Fed might adopt a more dovish stance.
Recommended
Recommended
Recommended
Recommended
GOLD
Gold’s price increase was halted after reaching an all-time high of $3,045.33 per troy ounce. Following this peak, Gold dipped to $3,022.67 per troy ounce before gradually starting to rebound.
This movement suggests that Gold has been impacted by profit-taking activities after setting the record high. However, there is potential for Gold to surge again if the Fed takes a relatively dovish approach in its midnight monetary policy announcement.
OIL
The price of Oil (CLS10) fell to $66.08 per troy ounce at the beginning of the European trading session. Oil faced downward pressure following discussions between the United States and Russia aimed at forging a ceasefire with Ukraine. If these negotiations succeed, it could lead to a relaxation of sanctions on Russia’s energy sector, increasing global supply.
This evening, the release of U.S. Oil stock data at 9:30 PM WIB might influence market movements. Estimates from Trading Central indicate that stock levels increased by 1.17 million barrels for the week ending March 14. A release exceeding these forecasts could add further pressure on Oil prices.
EURUSD
EURUSD fell sharply by 716 points (71.6 pips) to 1.08731 at the start of the European trading session. This currency pair was hit hard by the collapse of the Turkish lira, exacerbated by the political situation in the country.
The crash of the lira has favored the U.S. dollar, regarded as a safe haven, consequently putting downward pressure on EURUSD. This sentiment is expected to linger, but should the Fed lean toward a more dovish stance, EURUSD may experience positive momentum.
GBPUSD
Similar to EURUSD, this currency pair also declined to 1.29569 due to the Turkish lira’s collapse. Market participants have shifted their preferences towards the U.S. dollar, causing GBPUSD to retract from its four-month high.
Nonetheless, if the Fed adopts a more dovish approach, possibly signaling a faster rate cut, there is potential for GBPUSD to see an increase in positive sentiment.
USDJPY
USDJPY rose at the start of the European trading session, reaching 150.023, the highest level in the past two weeks.
Market expectations from the Bank of Japan (BoJ) suggest that the BoJ will maintain interest rates at 0.5%, contributing to the rise in USDJPY. However, there is a risk that USDJPY could experience downward pressure if the Fed signals an accelerated timeline for interest rate cuts.
Nasdaq
Nasdaq has remained relatively stable at the beginning of the European trading day, fluctuating between 19,455 and 19,591 after a significant drop on Tuesday. This behavior indicates that market participants are awaiting the Fed’s monetary policy announcement.
There is potential for Nasdaq to gain positive sentiment if the Fed provides indications of a possible interest rate cut in the near future.
