The financial markets continue to experience high volatility during European trading on Monday (December 22, 2025). From a fundamentals perspective, the factors influencing the market remain relatively stable. Investor optimism that the Federal Reserve (The Fed) may cut interest rates two to three times in 2026 continues to dominate sentiment, driven by weakening labor market data in the United States and inflation indicators showing signs of slowdown.
In addition to monetary factors, rising geopolitical tensions between the US and Venezuela are looming over the market. Reports indicate that the US is monitoring ship activities around Venezuela. President Donald Trump has also indicated that the possibility of conflict with Venezuela cannot be dismissed. While the likelihood of military escalation is considered relatively low, this geopolitical sentiment still contributes to market uncertainty.
These sentiments are expected to continue impacting market movements during the US trading session.
金子
Gold prices (XAUUSD) achieved an all-time high, soaring by US$81.55 or 815.5 pips to US$4,420.14 per troy ounce during European trading. This sharp increase has been fueled by rising market optimism regarding a more aggressive interest rate cut from The Fed than the central bank’s official projection of only one cut.
Moreover, the escalating geopolitical tensions between the US and Venezuela, especially after President Trump hinted at the possibility of conflict, have contributed to increased demand for safe-haven assets.
The combination of these two factors is likely to further drive gold prices during the US trading session.
油
Oil prices (CLS10) increased by US$0.72 to US$57.25 per barrel during European trading. President Trump announced a “total and complete” blockade against Venezuelan oil tankers. Conversely, reports of a Ukrainian drone attack on a Russian ship in the Mediterranean Sea have worsened global energy supply disruptions.
These factors heighten the risk of global oil supply interruptions, thereby providing a positive sentiment for oil prices. This sentiment is likely to sustain further upward movement in the US trading session.
歐元兌美元
The EURUSD rose by 301 points or 30 pips to 1.17382 during European trading. The US dollar remains under pressure due to increasing market expectations that The Fed will cut interest rates more aggressively next year.
During the US trading session, this sentiment is expected to dominate, opening opportunities for EURUSD to continue its ascent.
英鎊兌美元
GBPUSD saw a significant increase of 487 points or 48.7 pips to 1.34234 during European trading. This surge is attributed to the pressure on the US dollar stemming from expectations of two to three interest rate cuts by The Fed next year, which is more than the central bank’s official projection of just one cut.
On the other hand, the market also assesses that the Bank of England (BoE) has limited room for further rate cuts, following the rate cut last week that aligned with market expectations.
These sentiments are likely to continue supporting GBPUSD’s movement during the US trading session.
美元日圓
USDJPY fell by 492 points or 49 pips to 157.226 during European trading. The yen strengthened after Japan’s senior currency diplomat, Atsushi Mimura, emphasized that authorities are prepared to take action against excessive yen movements.
Meanwhile, the US dollar continues to face pressure due to expectations of more aggressive interest rate cuts from The Fed next year.
These sentiments may continue to exert pressure on USDJPY during the US trading session.
納斯達克
The Nasdaq index rose by 128 points to 25,724 during European trading. This increase is still underpinned by growing expectations of more aggressive interest rate cuts by The Fed next year, which directly benefits technology stocks sensitive to interest rate changes.
In the US trading session, this sentiment is expected to continue supporting Nasdaq’s movements.
