The release of the Purchasing Managers’ Index (PMI) for manufacturing and services from Europe and the United States had a notable impact on financial market movements at the start of last week, alongside remarks made by U.S. President Donald Trump regarding import tariff policies.
This sentiment is expected to continue influencing market movements during the European trading session on Tuesday (March 25, 2025).
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GOLD
Gold prices (XAUUSD) decreased by $11.72, settling at $3,011.82 per troy ounce in early trading last week. The drop marks a three-day decline for gold, due to profit-taking activities along with the strengthening of the U.S. dollar.
Additionally, U.S. service sector PMI data indicating stronger growth this month put further pressure on gold prices. Thus, there remains a possibility for continued profit-taking during the European session.
OIL
Oil prices (CLS10) rose by $0.86, reaching $69.15 per barrel on Monday, hitting the highest level in three weeks.
The increase came after President Trump threatened to raise import tariffs on countries purchasing crude oil from Venezuela. This sentiment is likely to continue influencing oil price movements in the European trading session.
EURUSD
EURUSD experienced a four-day decline, closing Monday’s trading at 1.07985. The pair faced pressure following reports from Germany indicating a slowdown and near contraction in the service sector PMI.
This release supported the European Central Bank’s (ECB) view that the U.S. economy could slow down significantly, primarily due to the ongoing trade war between the U.S. and the European Union. During the European session, the release of German consumer sentiment data at 14:00 WIB could act as a potential mover for EURUSD.
Forecast from Trading Central indicates that consumer sentiment for this month is expected at 87.9, an increase from February’s 85.2. If the actual data surpasses this forecast, it may generate positive sentiment for EURUSD.
GBPUSD
GBPUSD remained relatively stable at 1.29191 at the start of last week after peaking at 1.29738. The currency pair increased following the release of U.K. service sector PMI, showing an uptick. However, a strong dollar in response to U.S. economic data led to a reduction in its earlier gains.
With the U.K. economy appearing robust, as confirmed by the service PMI, this may bolster the Bank of England’s (BoE) relatively more hawkish stance, providing positive sentiment for GBPUSD.
USDJPY
USDJPY surged by 1.362 points (136.2 pips), reaching 150.661, marking the highest level since early March. The release of U.S. economic data imparted positive sentiment to USDJPY. However, given the prevailing economic uncertainties, there exists a potential for profit-taking to hit USDJPY at the beginning of the European session.
Nasdaq
The Nasdaq soared by 387 index points to 20,356 in early trading last week. The surge was fueled by positive sentiment following reports indicating that President Trump planned to implement more flexible import tariff increases under a reciprocal policy.
This sentiment is expected to continue affecting Nasdaq movements during the European session.
