The Federal Reserve has officially reduced interest rates by 25 basis points to a range of 3.75% to 4% on Thursday (October 30, 2025) early in the morning. Governor Jerome Powell indicated that the likelihood of a further rate cut in December is diminishing due to the government shutdown in the United States, which has limited data availability.
On another note, U.S. President Donald Trump and Chinese President Xi Jinping recently met in South Korea. Trump stated that he anticipates having a fantastic long-term relationship with China. Although no official outcomes from the meeting have been announced, this has fostered a positive sentiment regarding the absence of a trade war.
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In the European trading session, these sentiments are expected to influence market price movements. It’s crucial to pay attention to the economic data being released today. The following are data points from Trading Central:
- Germany’s Gross Domestic Product (GDP) growth (year-on-year) for September is expected at 16:00 WIB; forecasted at 0.2% vs. the previous -0.2%
- The Eurozone’s GDP growth (year-on-year) for September at 17:00 WIB; expected at 1.1% compared to the previous 1.5%
GOLD
Gold (XAUUSD) prices are under pressure after peaking at $4,030.10 per troy ounce during yesterday’s trading. This downward pressure is attributed to Jerome Powell’s comments indicating reduced potential for a rate cut in December. Consequently, Gold closed Wednesday’s trading at $3,912.73 per troy ounce.
Moreover, the meeting between Trump and Xi Jinping appeared to be smooth and opened significant possibilities for a trade agreement. This could reduce the demand for safe-haven assets, leading to further pressure on Gold prices during the European session. Even though Gold showed signs of strength at the beginning of today’s trading, it remains susceptible to reversal.
OIL
Oil prices (CLS10) exhibited volatility and posted a slight increase to $60.34 per barrel during Wednesday’s trading. The uptick was driven by actual stock data showing a significant reduction in U.S. oil inventories, falling well below forecasts set by Trading Central. Additionally, the U.S.-China meeting is a central focus for investors who hope that tensions from the trade conflict ease, improving global economic conditions and boosting oil demand.
These sentiments are likely to continue influencing oil prices during the European trading session.
EURUSD
EURUSD has shown a sharp increase at the start of today’s trading, following a drop of 514 points (51.4 pips) in the previous session, as the U.S. dollar strengthened on Powell’s comments about diminishing chances for a December rate cut.
As we approach the European trading session, EURUSD continues to hover near the daily high of 1.15967 ahead of the German and Eurozone GDP releases. Should the actual data fall short of expectations, there is potential for the currency pair to reverse direction.
GBPUSD
GBPUSD fell sharply by 852 points (85.2 pips) to 1.31893 in yesterday’s trading. This was driven by a stronger U.S. dollar and market players anticipating a possible interest rate cut from the Bank of England (BoE) in the near future due to slowing inflation and worsening economic conditions, which have reduced productivity growth forecasts in the UK.
As the European session approaches, GBPUSD has slightly recovered to 1.32187. However, with the Federal Reserve adopting a cautious approach to rate cuts, there exists potential for GBPUSD to face renewed pressure.
USDJPY
USDJPY rose by 621 points (62.1 pips) to 152.655 in yesterday’s trading, benefiting from positive sentiment regarding the Fed’s cautious outlook on interest rates heading into December. Today, USDJPY is trading in a volatile range of 152.154-153.132 after the Bank of Japan (BoJ) held interest rates steady.
Additionally, investors are watching Japan’s Prime Minister Sanae Takaichi, who favors a more lenient monetary policy and substantial fiscal spending, which could lead to yen depreciation. These sentiments will continue to impact USDJPY in the European session.
NASDAQ
The Nasdaq continues to experience upward momentum, breaking its all-time high, despite the Fed’s cautious stance on interest rate cuts. Today, the Nasdaq set another record at 26,397.
The Nasdaq benefits from positive sentiment as Powell suggests that the AI boom will not trigger a crash similar to the dot-com bubble. This viewpoint reinforces the idea that the impressive rise of the Nasdaq this year is indeed supported by solid fundamentals. These sentiments are likely to affect the movement of the Nasdaq during the European trading session.
