The market experienced a turnaround last Friday, as the US dollar faced significant pressure after showing strength earlier. Consequently, the price of Gold surged upward.
This shift in market direction followed the release of disappointing US labor market data. The Non-farm payrolls (NFP) figures were reported lower than expected, and the unemployment rate in the US rose to 4.2% in July, up from 4.1% the previous month.
Recommended
Recommended
Recommended
Recommended
The poor labor market data increased the likelihood of a rate cut by the Federal Reserve in September to about 90%, up from a prior estimate of just 40%, according to the CME Group’s FedWatch tool.
This sentiment is expected to continue influencing market movements on Monday (August 4, 2025).
GOLD
The price of Gold (XAUUSD) skyrocketed by nearly US$73 or 730 pips to US$3,362.69 per troy ounce in last Friday’s trading. This sharp increase in Gold’s price led to a weekly gain, bouncing back after a significant drop that had reached a one-month low.
The weakened US labor market data served as a catalyst for the rise in Gold prices. With the Fed’s potential rate cut increasing, the US dollar was pressured, which provided a positive sentiment for Gold.
This sentiment is likely to influence market movements during the European trading session.
OIL
Oil prices (CLS10) fell by US$2.1 to US$67.25 per barrel in last Friday’s trading. The drop in Oil prices was prompted by market participants reassessing the impact of President Trump’s import tariff hike on the global economy, which took effect on August 1.
The pressure on Oil prices intensified after OPEC+ agreed on Sunday to increase production by 547,000 barrels per day starting in September. These two negative factors are expected to weigh on Oil markets during the European trading session.
EURUSD
The EURUSD pair soared by 1.754 points (175.4 pips) to 1.15872 in last Friday’s trading, bouncing back from a one-and-a-half-month low.
The increasing prospects of a rate cut by the Federal Reserve in September, now with nearly a 90% probability, contributed to the resurgence of EURUSD after a period of pressure. This sentiment is likely to continue impacting EURUSD movements during the European trading session.
GBPUSD
Anticipations of the Bank of England (BoE) cutting interest rates this week led GBPUSD to plummet to 1.31396, marking its lowest level in the past 2.5 months.
Despite the low position and poor data from the US economy allowing GBPUSD to recover and close Friday’s trading at 1.32775, the predicted rate cut by the BoE on Thursday may exert pressure on GBPUSD during the European trading session.
USDJPY
USDJPY dropped by over 3,300 points (330 pips) to 147.387 in last Friday’s trading. The disappointing US labor market data triggered a massive profit-taking action, as USDJPY had previously reached a four-month high.
Given this sharp decline, there is a possibility for USDJPY to rebound during the European trading session.
Nasdaq
The Nasdaq index plummeted by 460 points to 22,868 in last Friday’s trading, declining for two consecutive days and moving further away from its all-time high of 23,844.
The poor US labor data prompted a profit-taking trend in Nasdaq, which may continue through the European trading session. Furthermore, the market is still weighing the repercussions of the import tariff increases implemented by President Trump, which took effect on August 1.
