The financial markets displayed relative stability at the beginning of the European trading session on Thursday (July 10, 2025), after experiencing high volatility earlier in response to the release of the Federal Reserve’s minutes from their monetary policy meeting.<\/p>\n
The minutes revealed that a majority of Federal Reserve board members believed a decrease in interest rates was warranted this year. However, the extent of any potential rate cut remains a topic of debate.<\/p>\n
President Trump’s import tariff policy was cited as the primary reason for the Fed’s hesitation to lower interest rates, due to the risk of inflation rising again. Nonetheless, some Fed officials suggested that any inflation increase might be temporary and moderate, while economic conditions and the labor market continue to weaken.<\/p>\n
This sentiment will likely influence market movements during tonight’s trading session, alongside developments regarding President Trump’s import tariff policies. The release of US unemployment claims data at 7:30 PM WIB could also impact the market. Forecast<\/em> from Trading Central indicates that claims for the week ending July 5 are expected to be around 245,000, an increase from the previous week\u2019s 233,000.<\/p>\n GOLD<\/strong> Additionally, the risk of a trade war between the US and Brazil has also contributed to the positive sentiment surrounding gold. Trump imposed a 50% import tariff on Brazil, which is expected to be met with retaliation from the South American nation, potentially sparking a trade conflict.<\/p>\n Gold could receive additional positive sentiment if US unemployment claims data is released higher than the forecast<\/em>; indicating weakness in the US labor market.<\/p>\n OIL<\/strong> Yesterday, the EIA reported a surge in US oil stocks, which jumped by more than 7 million barrels for the week ending July 4. This significant increase in stock could indicate a lack of demand from the United States, the world’s largest oil consumer, adding negative sentiment towards oil.<\/p>\n EURUSD<\/strong> Although the trade negotiations concluded yesterday, with new tariffs scheduled to take effect on August 1, discussions might still continue. This scenario provided a positive sentiment for the EURUSD, along with pressure on the US dollar following the release of the Fed’s minutes.<\/p>\n The pressure on the US dollar could intensify if unemployment claims data is released exceeding the forecast<\/em>. This scenario may provide additional positive sentiment for the EURUSD.<\/p>\n GBPUSD<\/strong> The pressure on the US dollar may increase further if unemployment claims data comes in higher than the forecast<\/em>. This could indicate a weakening US labor market and strengthen expectations for two rate cuts by the Fed this year.<\/p>\n USDJPY<\/strong> Nasdaq<\/strong> Thus, if the unemployment claims data reinforces the likelihood of Fed rate cuts, the Nasdaq could receive a boost in positive sentiment.<\/p>\n The financial markets displayed relative stability at the beginning of the European trading session on Thursday (July 10, 2025), after experiencing high volatility earlier in response to the release of the Federal Reserve’s minutes from their monetary policy meeting. The minutes revealed that a majority of Federal Reserve board members believed a decrease in interest […]<\/p>\n","protected":false},"author":4,"featured_media":21041,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5170,142],"tags":[5175,5174,5176,5178,5177,5168],"class_list":["post-76333","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-summary","category-news","tag-cls10","tag-eurusd","tag-gbpusd","tag-nq","tag-usdjpy","tag-xauusd"],"yoast_head":"\n
Gold prices (XAUUSD) continued to rise at the start of the European session, reaching a daily high of $3,329.40 per troy ounce. Positive sentiment for gold stemmed from the Fed’s minutes, which indicated a desire among its members to lower interest rates.<\/p>\n
Oil prices (CLS10) turned down at the beginning of European trading, hitting a daily low of $67.89 per barrel. Earlier this morning, oil briefly climbed to around $68.55 per barrel, but negative sentiment weighed it down.<\/p>\n
The EURUSD pair trimmed gains at the beginning of the European session after previously reaching a daily high of 1.17497. The dynamics of US-EU trade negotiations played a significant role in the movement of the EURUSD.<\/p>\n
GBPUSD maintained its upward trend into the early European trading session, approaching a daily high of 1.36193. Despite negative sentiment arising from ongoing political dynamics in the UK, the significant pressure on the US dollar allowed this currency pair to rise.<\/p>\n
USDJPY reduced its earlier losses at the start of the European session after previously dropping 481 points (48.1 pips) to 145.751. However, if US unemployment claims data is released higher than the forecast<\/em>, the pressure on USDJPY could increase significantly. The market will interpret it as the Fed becoming increasingly confident in the need to lower interest rates.<\/p>\n
The Nasdaq index recovered from its decline after previously dropping to 22,978 due to profit taking<\/em>. The release of the Fed’s minutes had previously driven the Nasdaq to an all-time high of 23,110 on Wednesday before being affected by profit taking<\/em>.<\/p>\n