Global financial markets are currently overshadowed by geopolitical tensions in the Middle East. United States President Donald Trump is reportedly contemplating military support for Israel and the potential for strikes against Tehran. This situation heightens concerns among investors regarding the region’s stability. On another note, the Federal Reserve opted to maintain its benchmark interest rate. This decision reinforces the view that the Fed remains hawkish, amid persistent fears of high inflation and signals that any rate cuts will be slower than previously anticipated.
GOLD
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The price of Gold has seen a decline for three consecutive days. On Friday, June 20, 2025, Gold dropped around $15, reaching a new daily low of $3,344, primarily driven by expectations that the Federal Reserve would implement rate cuts at a slower pace than initially thought.
The Fed’s tight monetary policy outlook has been a significant factor weighing on Gold prices, alongside escalating conflicts in the Middle East. As of this afternoon, downward pressure on Gold is expected to continue.
OIL
Oil prices have remained steady over the past two days. On Thursday, Oil closed slightly lower yet the market outlook still leans bullish. A key factor continually influencing price movement is President Trump’s contemplation of military backing for Israel and the possibility of strikes on Tehran.
Should this scenario unfold, tensions in the Middle East are projected to intensify, potentially disrupting global oil supplies and further increasing Oil prices.
EURUSD
The EURUSD pair rose by 45 pips, hitting a peak of 1.1532 during Friday’s trading. This increase was fueled by profit-taking against the US dollar, which had strengthened due to its status as a safe-haven asset.
Currently, market attention is focused on the upcoming German inflation data, which is expected to show a slowdown, possibly stalling the EURUSD’s upward momentum during the European trading session.
GBPUSD
Similarly to the EURUSD, the British Pound also managed to gain against the US dollar on Friday, aided by sell pressure on the dollar. This scenario provided temporary support for the GBPUSD’s strength.
However, market participants are watching the UK’s retail sales data, which was released lower than anticipated, potentially leading to selling pressure on GBPUSD during the European session.
USDJPY
The rising tensions in the Middle East, coupled with persistently high inflation in Japan, have spurred demand for the Yen in financial markets. The Yen’s status as a safe-haven asset, combined with relatively robust domestic economic data, are key reasons for this strengthening.
As of this afternoon, USDJPY still has the potential to continue its decline, given that market sentiment is inclined towards safe assets amid uncertain geopolitical and economic conditions globally.
NASDAQ
The Nasdaq index experienced a rebound at the opening of Friday’s trading, reaching a new daily high of 21,934 after a sharp decline in the previous session.
However, this positive sentiment is likely to be short-lived, as market attention remains focused on the ongoing conflict between Israel and Iran and the potential involvement of the United States.
