Market volatility escalated during Wednesday night trading in response to the release of U.S. inflation data which came in lower than expected. Additionally, rising tensions between the U.S. and Iran led to significant market movements.
U.S. President Donald Trump expressed a loss of confidence that a deal could be reached with Iran regarding its nuclear program. The U.S. government is currently preparing to evacuate some of its staff from the U.S. embassy in Iraq due to security concerns.
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Furthermore, the UK Navy has issued a warning to its sailors indicating that the heightened tensions in the Middle East could potentially escalate into military conflict. This kind of warning is rare, heightening fears of war in the region.
These sentiments are likely to continue influencing market movements in European trading on Thursday (June 12, 2025), alongside the release of several economic data points. Here are the details from Trading Central:
- UK Gross Domestic Product (GDP) growth (month-on-month/April) at 13:00 WIB; forecast 0% vs previous 0.2%.
- UK industrial production (month-on-month/April) at 13:00 WIB; forecast -0.2% vs previous -0.7%.
GOLD
Gold prices (XAUUSD) surged by $32.26, or 322.6 pips, reaching $3,354.44 per troy ounce yesterday, and this morning they increased further to $3,377.79 per troy ounce.
Heightened geopolitical tensions in the Middle East have driven up demand for gold as a safe haven. Additionally, gold received a positive sentiment from U.S. inflation growth that was less than expected, raising hopes that the Federal Reserve may cut interest rates more aggressively.
Both sentiments are expected to continue affecting market movements during European trading.
OIL
Oil prices (CLS10) jumped by $3.55 to $68.28 per barrel, marking the highest level in over two months. This morning, oil prices further rose to $68.99 per barrel before declining to $67.01 per barrel due to profit-taking actions.
The risk of conflict escalation in the Middle East has been a driving factor for rising oil prices. Such conflicts could potentially disrupt supply from the region, leading to increased oil prices.
These sentiments are likely to continue impacting oil market movements during European trading.
EURUSD
EURUSD soared 626 points (62.6 pips) to 1.14861 in Wednesday’s trading, continuing to rise to 1.15293, the highest level in nearly two months.
The lower-than-expected inflation growth in the U.S. has ignited hopes that the Federal Reserve will act more aggressively in cutting interest rates, putting pressure on the dollar. Consequently, EURUSD was able to surge, and this sentiment will likely continue to affect movements in European trading.
GBPUSD
The pressure on the U.S. dollar led GBPUSD to rise by 495 points (49.5 pips) to 1.35418 in yesterday’s trading. Today, GBPUSD has again increased to 1.35930, reflecting the weakened state of the dollar.
However, given the economic data projections for the UK today, there is potential for GBPUSD to be pressured if GDP and industrial production data are released lower than forecast.
USDJPY
USDJPY fell by 298 points (29.8 pips) to 144.519 in Wednesday’s trading. Today, it decreased further by 79.8 pips to 143.721. This reflects significant pressure on the dollar following the release of U.S. inflation data that was lower than forecast, fostering hopes that the Federal Reserve may cut interest rates more aggressively.
This sentiment is expected to continue influencing USDJPY movements during European trading.
Nasdaq
The Nasdaq index dropped by 70 points to 21,880 during trading on Wednesday, following a previous increase to 22,092, which was the highest level since February 21.
Increased tensions between the U.S. and Iran prompted profit-taking actions in the Nasdaq. This trend may continue in European trading.
