The financial markets have experienced significant volatility since the beginning of trading in the Asian session on Thursday (December 11, 2025), following announcements from the United States Federal Reserve, commonly known as The Fed.
As anticipated by market analysts, The Fed officially lowered interest rates by 25 basis points, bringing them down to a range of 3.5% to 3.75%. Additionally, The Fed introduced a quantitative easing (QE) program that involves purchasing bonds worth $40 billion.
Nevertheless, the central bank maintained its projection that there will only be one further interest rate cut expected in 2026. This monetary policy sentiment has the potential to induce high volatility in the European trading session.
金子
The price of Gold (XAUUSD) dropped to $4,181.89 before bouncing back by $20.25 to $4,228.15 per troy ounce in yesterday’s trading. As the European session approaches today, Gold is pressured again after Oracle released quarterly earnings that fell short of Wall Street’s expectations, raising new concerns over an AI bubble. Gold, which briefly peaked at $4,247 earlier today, has slid back to $4,208.44 per troy ounce due to profit-taking. The significant rise in Gold prices this year has led many investors and traders to liquidate their positions in favor of cash, especially with the year-end approaching. This trend is evident as the US dollar rebounded after previously being under pressure.
Despite this, the decision to cut interest rates and announce QE provides a strong positive sentiment for Gold. The $40 billion QE is expected to increase liquidity, which could weaken the US dollar, providing additional support for Gold.
With these conflicting sentiments, Gold’s movement during the European session is likely to be highly volatile. The potential for Gold to rebound remains considerable.
油
Oil prices (CLS10) rose by $0.56 to $58.94 per barrel in yesterday’s trading, following reports that the US confiscated an oil tanker off the coast of Venezuela. This action is seen as a pressure tactic against Venezuela’s oil distribution, which could reduce global supply.
However, as the European session approaches, Oil is facing renewed pressure. Production levels from OPEC+ and its allies are expected to exceed demand, escalating the risk of oversupply. This sentiment could continue to exert downward pressure on Oil prices during the European session.
歐元兌美元
EURUSD surged by 690 points or 69 pips to 1.16929 in yesterday’s trading. The US dollar weakened significantly following The Fed’s announcement of interest rate cuts and the QE program, which bolstered EURUSD.
A prevailing sentiment of “cash is king” for the US dollar, fueled by a decline in stock indexes and Gold, caused EURUSD to reverse and drop prior to today’s European session. However, the US dollar still grapples with negative sentiment due to rate cuts and QE, leaving EURUSD with the potential to continue strengthening during the European session.
英鎊兌美元
GBPUSD climbed by 823 points or 82 pips to 1.33747 in the previous trading session, driven by the weakened US dollar resulting from The Fed’s rate cuts and QE.
As the European session nears, GBPUSD is experiencing a correction similar to EURUSD. However, without significant economic data releases from the UK, the direction of this pair will largely depend on the US dollar, which remains under the dovish sentiment from The Fed.
美元日圓
USDJPY fell by 863 points or 86 pips to 155.956 in yesterday’s trading, with the decline carrying over into today. The pressure on the US dollar due to the rate cuts and QE is the primary driver of USDJPY’s decline. Furthermore, the market is now focusing on the Bank of Japan (BoJ) meeting, anticipating a potential interest rate increase after BoJ Governor Kazuo Ueda mentioned that Japan’s inflation is approaching targets.
The dovish sentiment from The Fed combined with potential hawkish remarks from the BoJ could continue to weigh on USDJPY during the European session.
納斯達克
The Nasdaq index rose by 125 points to 25,800 in yesterday’s trading, buoyed by the positive sentiments from The Fed’s interest rate cuts and QE announcements.
However, as the European session draws near, the Nasdaq plummeted by 415 index points to 25,385 after Oracle reported quarterly earnings that fell below market expectations, triggering fears of an AI bubble and leading to a broad decline in technology stocks.
This negative sentiment is likely to continue exerting pressure on the Nasdaq throughout the European session.
