Financial market volatility remains elevated as European trading begins on Wednesday (September 3, 2025). European currencies are rebounding despite the ongoing sell-off in the bond market.
As previously highlighted in the Macro Overview, fiscal and debt issues have sparked this selling trend. Consequently, the yields on 30-year bonds for both France and Germany have surged to their highest levels since 2011. Meanwhile, the 30-year UK bond yield has climbed to heights not seen since 1998.
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The bond market’s movements will be a focus during tonight’s trading. Additionally, the release of data from the United States is expected to serve as a significant market mover.
Here is data from Trading Central:
- US Job Openings (JOLTs) (July) at 21:00 WIB; forecast 7.3 million vs previous 7.44 million
GOLD
Gold (XAUUSD) prices corrected at the start of European trading after reaching an all-time high of $3,546 per troy ounce earlier today.
Nevertheless, market participants are optimistic about the possibility of the Fed lowering interest rates twice this year, creating positive sentiment for Gold. This positive sentiment could strengthen further if the US JOLTs data comes in lower than the forecast.
Moreover, the European bond market continues to be in focus. If another sell-off occurs, Gold’s appeal as a safe haven is likely to increase.
OIL
Oil (CLS10) prices plunged during the early European trading session, falling to a daily low of $64.14 per barrel. Compared to Tuesday’s close, Oil has dropped by $1.46.
This decline followed reports that OPEC+ is reconsidering increasing production levels in October.
This sentiment is expected to continue influencing Oil prices throughout tonight’s trading session.
EURUSD
EURUSD reversed course and rose during the early European trade, reaching a daily high of 1.16649. Earlier today, the currency pair had dipped to 1.16080, continuing a sharp decline from Tuesday.
Data released from the Eurozone indicated a slowdown in producer price inflation. This report may instigate negative sentiment for EURUSD. Furthermore, should a sell-off resume in the bond market, EURUSD could face additional pressure.
GBPUSD
Similarly, GBPUSD also recovered, rising to 1.34172 after dipping to 1.33327 earlier today.
Attention remains on the UK bond market, where renewed selling could pressure GBPUSD once again.
USDJPY
USDJPY surged over 100 pips yesterday and briefly continued to rise to 149.131 during early European trading before pulling back.
This movement indicates that traders still see potential dollar weakness, should the Fed opt for two rate cuts this year. Therefore, if the JOLTs data comes in lower than predicted, USDJPY is likely to come under pressure.
NASDAQ
The Nasdaq index rebounded to 23,447 at the start of European trading after dipping to 23,299 this morning. The Nasdaq demonstrated resilience as the European bond market stabilized.
However, if another sell-off occurs in the bond market, stock markets could receive negative sentiment, putting pressure on the Nasdaq once again.
