The financial markets are exhibiting a relatively stable trend as trading begins in the European session on Monday (August 11, 2025), with the only notable movement occurring in Gold. Uncertainty surrounding gold bullion import tariffs, along with the scheduled meeting between U.S. President Donald Trump and Russian President Vladimir Putin, is contributing to downward pressure on Gold.
Meanwhile, the ongoing discussion regarding a potential interest rate cut by the Federal Reserve in September is still impacting broader market movements.
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GOLD
Gold prices (XAUUSD) have dropped over $45, reaching $3,352.95 per troy ounce as the European session commences. As mentioned previously in the Macro Overview, Gold received negative sentiment after market players perceived that the U.S. government would likely exempt gold bullion from the import tariff policies.
In addition, the planned meeting between Trump and Putin this week could signify an end to the Russia-Ukraine conflict. The conclusion of this war is expected to improve the global economy, particularly in the West, thereby increasing market participants’ appetite for risk. This situation diminishes Gold’s appeal as a safe haven asset.
These two factors are likely to continue exerting pressure on Gold through tonight’s trading.
OIL
Oil prices (CLS10) have risen to $63.96 in European trading after experiencing seven consecutive days of decline. During this negative streak, Oil prices fell by $6.91, hitting a two-month low.
The sharp decrease, combined with the lower price levels, has triggered buying activity, leading to the price increase. However, the upcoming Trump-Putin meeting remains a focal point that casts a negative shadow over Oil, as there is a possibility that Russian energy sectors may not face sanctions, ensuring stable global Oil supplies.
EURUSD
EURUSD has retraced some gains after peaking at a daily high of 1.16757 during the European session. The pair is still underpinned by positive sentiment stemming from pressures on the U.S. dollar due to expectations of the Federal Reserve cutting interest rates in September.
Furthermore, the Trump-Putin meeting plans also foster optimism, as the Eurozone’s economy stands to benefit if the Russia-Ukraine war comes to an end.
GBPUSD
GBPUSD has retraced its earlier gains after hitting a daily peak of 1.34765. Compared to the close on Friday, GBPUSD has gained 277 points (27.7 pips) and reached its highest level in two weeks.
The positive sentiment surrounding GBPUSD follows the Bank of England (BoE) announcing a rate cut last Thursday, though the decision was not unanimous. Four out of nine monetary policy committee members opted to maintain the current rate, suggesting that the BoE may not further cut rates in the near future. This sentiment is expected to influence movements throughout the evening.
USDJPY
USDJPY is trading between 147.346 and 147.791 as the European session begins, following a significant increase last Friday. Throughout the previous week, this currency pair moved sideways within a range of 146.610-148.090, reflecting pressure on the U.S. dollar due to expectations of a Federal Reserve rate cut, while market participants await clarity on when the Bank of Japan (BoJ) will raise interest rates.
These two factors will likely keep USDJPY volatile, with a tendency for a downward movement as recent meeting minutes from BoJ policy meetings suggest that some officials are again considering raising interest rates.
Nasdaq
Nasdaq is trading within the range of 23,667 – 23,772 as the European session begins after a sharp increase last Friday. Nasdaq is once again approaching its all-time high of 23,844, driven by a surge in technology stocks, particularly with Apple shares soaring by 13%.
This remarkable rise in Apple’s stock follows the announcement that the iPhone manufacturer plans to invest $600 billion in the United States over the next four years.
However, given its elevated position, there’s a potential for Nasdaq to experience profit-taking actions.
