The United States dollar (USD) underwent a correction at the beginning of last week’s trading session. Focus is on the ongoing trade discussions between the United States and China, which are taking place in London.
These negotiations are set to continue on Tuesday (June 10, 2025), potentially impacting market movements. Additionally, the release of the UK labor market data will play a significant role in influencing trends. Here are the details from Trading Central:
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UK Employment Change (April) at 1:00 PM WIB; forecast 80K compared to previous 112K
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UK Unemployment Rate (April) at 1:00 PM WIB; forecast 4.5% vs previous 4.5%
GOLD
The correction in the USD has led to an increase in Gold prices (XAUUSD) by $15.53, bringing it to $3,325.06 per troy ounce at the beginning of last week. This rise due to the USD’s correction leaves Gold susceptible to price drops, as shown when it hit a daily low of $3,301.84 per troy ounce today.
Gold remains overshadowed by negative sentiment stemming from data indicating that the US labor market remains robust, leading markets to believe that the Fed is unlikely to cut interest rates soon. Should there be positive developments in the US-China trade talks, Gold’s appeal as a safe haven may diminish, potentially putting downward pressure on prices during European trading hours.
OIL
Oil prices (CLS10) increased by $0.59, reaching $65.41 per barrel at the start of last week’s trading session. This level marks the highest since April 4th.
Optimism surrounding a US-China trade agreement has propelled oil prices upward since last Friday. A deal between the two countries could enhance the global economy, leading to increased demand for oil. This positive sentiment is likely to continue influencing oil market movements during European trading hours.
EURUSD
The EURUSD pair rose by 238 points (23.8 pips) to 1.14179 at the beginning of last week. The volatility of EURUSD heightened during the day, moving within the range of 1.13861 – 1.14357 as European trading began.
This fluctuation suggests that market participants are awaiting the outcome of the US-China trade negotiations. If a deal is reached, the implications for the USD may be mixed. Improved US economic conditions could positively impact the dollar, but a stronger global economy may increase appeal for currencies other than the dollar. Therefore, heightened volatility could occur in the forex market.
Until the results of the negotiations are confirmed, EURUSD is likely to experience downward pressure.
GBPUSD
GBPUSD also exhibited significant volatility today, climbing by 204 points (20.4 pips) to 1.35455. In European trading sessions, the release of UK labor market data may trigger substantial movements in GBPUSD.
If the employment change data is reported lower than the forecast, alongside an increase in the unemployment rate, there is potential for GBPUSD to face downward pressure.
USDJPY
The USDJPY pair fell by 316 points (31.6 pips) to 144.522 at the beginning of last week, while earlier today it spiked to 145.287 before retracting.
The high volatility observed in USDJPY indicates the significant impact that US-China trade discussions will have on the USD. Until outcomes are definitively known, USDJPY will likely continue to exhibit high volatility. With the USD experiencing positive sentiment from robust US labor market data, it may still garner favorable sentiment.
Nasdaq
The Nasdaq index closed flat at 21,821 at the start of last week after experiencing volatile trading. Today, the Nasdaq has continued to show volatility within the range of 21,756 – 21,972.
The US-China trade talks are the primary focus and could lead to significant movements in the Nasdaq. Prior to the announcement of negotiations results, there is a risk that Nasdaq may encounter profit-taking actions due to its relatively high positioning.
