The release of the Purchasing Managers’ Index (PMI) data for manufacturing and services from Europe has sparked significant volatility in the European currency markets during the trading session on Monday (March 24, 2025). Further substantial movements are likely to occur at the start of today’s trading.
GOLD
The price of Gold (XAUUSD) has exhibited volatility within a range of $3,013 to $3,030 per troy ounce at the beginning of the European trading session. Last Friday, Gold faced a slight decline over two consecutive days due to profit-taking activity.
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This profit-taking followed Gold’s record-setting peak of $3,057 per troy ounce and an appreciating US dollar. With European currencies currently strong and putting pressure on the US dollar, Gold could receive a positive sentiment during tonight’s trading.
OIL
The price of Oil (CLS10) climbed back to $68.73 per barrel during the European trading session after previously dipping to $67.94 per barrel.
US sanctions on oil products related to Iran have contributed to this uptick. Additionally, Israel’s renewed attacks on Gaza following a two-month ceasefire have raised concerns about escalating Middle Eastern conflicts that could disrupt supplies.
This sentiment is expected to continue affecting Oil prices during tonight’s trading session.
EURUSD
The EURUSD pair experienced a correction from its daily peak of 1.08583 following the release of German service PMI data, which reflected a decline. However, EURUSD has slowly begun to rebound, suggesting renewed pressure on the US dollar.
Tonight’s trading may see further upward momentum for EURUSD.
GBPUSD
GBPUSD rose at the start of the European session, reaching a level of 1.29723. This represents an increase of 545 points (54.5 pips) compared to Friday’s close.
UK data indicated a service PMI of 53.2, significantly surpassing the forecast of 51.1, which provided positive sentiment for GBPUSD.
Previously, this currency pair received a boost from the Bank of England (BoE) maintaining rates at 4.5% last week while adopting a more hawkish stance. The resurgence of inflationary pressure in the UK indicates that significant interest rate cuts are unlikely in the near future.
These factors are expected to influence GBPUSD’s movements as trading continues tonight.
USDJPY
USDJPY retraced some of its gains at the beginning of the European session after reaching a daily high of 149.954. This movement suggests a potential weakening of the US dollar.
The dollar has been under pressure following the Fed’s downward revision of the US economic growth forecast for this year. This sentiment is likely to continue impacting USDJPY during tonight’s trading.
Nasdaq
The Nasdaq index continued its upward trend at the start of the European trading session, reaching a level of 20,229. Compared to Friday’s closing figures, the Nasdaq gained 260 index points.
The sentiment surrounding US stocks has turned positive after the Fed indicated its intention to implement two rate cuts this year. This sentiment is likely to influence the Nasdaq’s movements in tonight’s trading session.
