Heightened volatility returned to the markets at the start of trading on Friday (December 26, 2025). Market movements are still influenced by escalating geopolitical tensions between the United States and Venezuela, with the ongoing US blockade on oil shipments from Venezuela. Moreover, reports indicate that US President Donald Trump has directed armed forces to carry out an attack against ISIS at the request of Nigerian authorities.
These combined factors have increased global uncertainty, with the risk of military conflict escalating, leading to a defensive stance among market participants.
Conversely, market expectations suggest that the Federal Reserve will likely cut interest rates two to three times in 2026 remain robust. This comes despite actual unemployment claims data from the US (December 20) coming in at 214,000, lower than the forecast of 226,000 and the previous figure of 224,000, indicating that the US labor market remains relatively solid.
Such sentiments will continue to affect market movements during the European trading session.
金子
Gold prices (XAUUSD) dipped slightly by $4.55 or 45 pips to $4,479.61 per troy ounce due to profit-taking actions during Wednesday’s trading, following record-high levels previously at $4,525.60 per troy ounce.
However, at the start of today’s trading, gold again reached a new all-time high, surging $51.57 or 515.7 pips to $4,531.18 per troy ounce.
This increase was driven by heightened global geopolitical tensions. President Trump’s order to conduct strikes against ISIS, coupled with the continuation of the US blockade on oil shipments from Venezuela, has intensified market uncertainty, thereby increasing demand for safe-haven assets.
Additionally, expectations for a more aggressive Fed interest rate cut next year continue to support gold’s performance.
With these mixed sentiments, gold still has the potential to continue its bullish trend during the European session.
油
Oil prices (CLS10) saw a minor decrease of $0.08 to $58.38 per barrel due to profit-taking during Wednesday’s session after a three-day rally. As the European trading session approaches, oil prices are attempting to rebound.
Positive sentiment stems from the ongoing US blockade on Venezuelan oil shipment, alongside damage to Russian energy infrastructure due to Ukrainian attacks. These factors are limiting global oil supply and alleviating oversupply concerns.
With this backdrop, oil prices are likely to rise again during European trading.
欧元/美元
EURUSD fell 132 points or 13 pips to 1.17777 during Wednesday’s trading. Profit-taking appeared after the currency pair experienced a sharp rise for two consecutive days. Meanwhile, the US dollar strengthened temporarily following unemployment claims data indicating that the labor market remains quite robust.
As the European session approaches, EURUSD is trying to regain strength. The US dollar is still under pressure from expectations of more aggressive Fed interest rate cuts next year.
In the absence of any significant economic data releases from the eurozone, EURUSD’s movements will likely be dominated by the dynamics of the US dollar, with further strengthening potential during the European session.
英镑美元
GBPUSD slightly declined by 63 points or 6 pips to 1.35057 during Wednesday’s trading. The sharp increase over two previous days, bringing the currency pair to a two-month high, triggered profit-taking activities. The strengthening of the US dollar further compounded the pressure.
However, as the European trading session commences, GBPUSD is attempting to recover by opening with a gap up. The US dollar remains under pressure due to expectations of more aggressive Fed interest rate cuts next year.
In the absence of significant economic data releases from the UK, GBPUSD’s movements will still be largely influenced by the US dollar, with potential for further gains during the European session.
美元日元
USDJPY dropped by 243 points or 24 pips to 155.938 during Wednesday’s session, marking a third consecutive day of decline. Even though the US dollar showed some strength, the yen benefitted from positive sentiment regarding Japan’s government’s readiness to intervene in foreign exchange markets.
Such sentiment may continue to exert pressure on USDJPY during the European trading session.
纳斯达克
The Nasdaq increased by 53 index points to 25,864, marking its fifth consecutive day of gains on Wednesday, which has continued into today. Market optimism regarding a potential aggressive Fed interest rate cut next year remains a primary driver of the technology stock index’s strengthening.
This positive sentiment may still propel the Nasdaq during the European trading session.
