High volatility has once again hit the financial markets during the European trading session on Tuesday (May 27, 2025). The United States Dollar is strong this afternoon, with various economic data likely to influence trading movements later tonight. Below are some details from Trading Central:
- The US durable goods orders data (month-on-month/April) will be released at 19:30 WIB; forecast -6.8% compared to the previous 7.5%
- The US consumer sentiment data (May) is set for release at 21:00 WIB; forecast 84 against the previous 86
GOLD
The price of Gold (XAUUSD) plummeted to $3,290.79 per troy ounce at the start of the European trading session due to the strong US dollar. Compared to the closing price on Monday, Gold has dropped by over $51 or 510 pips.
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Gold was under pressure after the decision by President Donald Trump to postpone the increase in import tariffs on products from the European Union until July 9. This decision diminished Gold’s appeal as a safe haven asset.
Increasing pressure on Gold came from the strengthened dollar. However, should the US economic data released tonight be worse than forecast, there may be potential for the dollar to weaken again, providing a chance for Gold to rebound.
OIL
Oil prices (CLS10) have been fluctuating as trading begins in Europe, within the range of $61.06 – $61.86 per barrel.
Oil is struggling to gain ground as market participants await the upcoming OPEC+ meeting this week. The oil cartel plans to increase production by 411,000 barrels per day starting in July.
This situation has created a negative sentiment overshadowing Oil.
EURUSD
The sudden strength of the US Dollar has caused EURUSD to drop to 1.13373 at the opening of the European session. Compared to the closing on Monday, EURUSD has fallen by 479 points (47.9 pips).
Despite the pressure, should the US economic data tonight be released lower than anticipated, there is a chance for EURUSD to rebound. A disappointing US economic result may raise concerns among market participants about the long-term economic outlook.
GBPUSD
GBPUSD has declined at the start of the European trading, hitting a daily low of 1.35213. Compared to Monday’s closing price, GBPUSD is down 359 points (35.9 pips).
GBPUSD is experiencing profit taking as it is positioned near its highest level in over three years. The currency pair still benefits from positive sentiment regarding the UK’s economy, as rising inflation indicates the Bank of England (BoE) is unlikely to cut interest rates in the near future.
Therefore, if US economic data is worse than the forecast, GBPUSD could experience a rebound.
USDJPY
USDJPY surged at the beginning of the European session, reaching a daily high of 144.145. Compared to Monday’s close, USDJPY has risen dramatically by 1.383 points (138.3 pips).
The Yen is currently under pressure due to declining Japanese bond yields, which has driven USDJPY higher. News that the Japanese government plans to reduce the issuance of very long-term bonds has led to a decrease in those yields.
This sentiment is expected to continue influencing USDJPY’s movements later tonight.
Nasdaq
The Nasdaq index has rebounded to around 21,358 at the start of the European trading session after previously dropping to 21,141. This movement indicates that Nasdaq is still receiving positive sentiment from the extended trade negotiations between the US and the European Union, increasing the likelihood of a forthcoming agreement.
This sentiment is anticipated to impact Nasdaq’s performance in tonight’s trading.
