Volatile movements were observed at the beginning of the European trading session on Monday (March 10, 2025), with the US dollar continuing to face pressure, paralleled by declines in US stock indices. This pressure is attributed to increasing signs of an economic slowdown in the United States.
GOLD
Gold prices (XAUUSD) fell below $2,900 per troy ounce before rebounding to approach the daily high of $2,915 per troy ounce.
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This movement emphasizes the sideways trend of Gold observed since last week. Gold continues to receive positive sentiment from indications of an economic slowdown in the US.
The US Gross Domestic Product (GDP) is projected to contract in Q1 2025, as reflected in the GDPNow data from the Atlanta Fed. As of March 6, GDPNow forecasts a -2.4% GDP for the US in the first quarter of 2025. The GDPNow model updates its US economic growth projections in real time based on the latest economic data releases, leading to continuous adjustments.
This sentiment is likely to provide a positive backdrop for Gold in tonight’s trading, especially if the US dollar remains under pressure.
OIL
Oil prices (CLS10) increased to $67.30 per barrel after previously dipping to $66.47 per barrel.
Oil rebounded due to short covering, as its current positioning is near the lowest levels since May 2023. Additionally, President Donald Trump has threatened to impose sanctions on Russia’s oil industry if a ceasefire agreement with Ukraine is not reached.
However, the sentiment of a US economic slowdown continues to loom over Oil prices, especially with OPEC+ planning to increase production next month. This indicates that pressure on Oil may still be significant in tonight’s market.
EURUSD
EURUSD displayed volatility at the start of the European trading session, nearing the highest level in four months. Data released earlier today indicated that Germany’s industrial production in January was reported to be 2% month-on-month (MoM) higher than the 1.5% forecast by Trading Central.
This data provides additional positive sentiment for EURUSD. The currency pair previously benefited from favorable sentiment stemming from Germany’s fiscal reform plans. Analysts view these steps as potentially transformative, marking a turning point for Germany’s struggling economy.
Such sentiment will likely continue to influence EURUSD’s movements in tonight’s trading.
GBPUSD
GBPUSD exhibited volatile fluctuations within a wide range of 1.28737 – 1.29455 at the onset of the European trading session. GBPUSD is currently hovering near its four-month peak.
With the US dollar under strain due to fears of economic contraction and a sense of optimism surrounding improvements in Europe’s economy due to Germany’s fiscal reforms, GBPUSD is likely to maintain positive sentiment in tonight’s trading.
USDJPY
USDJPY fell at the start of the European trading session, reaching a daily low of 146.924. Compared to Friday’s closing, USDJPY declined by 1.113 points (111.3 pips), marking its lowest level in five months.
Concerns over US economic contraction have placed additional pressure on USDJPY. This sentiment is expected to continue affecting USDJPY’s performance in tonight’s market.
Nasdaq
The Nasdaq composite has yet to recover by the start of the European trading session, lingering near its daily low of 19.923. Compared to Friday’s close, Nasdaq has fallen by 266 index points.
Concerns over trade war risks and a slowing US economy continue to cloud the Nasdaq’s outlook. This sentiment will likely persist and influence movements throughout the evening.
