May 15, 2025 – Global financial markets are navigating a critical inflection point as currency movements, precious metal prices, and macroeconomic anticipation define trading behavior. Here’s what happened in the last 24 hours:
Euro Surges Above 1.12 on Dollar Weakness
The euro pushed past the 1.1200 mark, hitting its highest level since March as broad dollar softness and easing trade tensions supported the common currency. Investors are rotating away from the greenback amid expectations that upcoming U.S. economic data may reveal slowing inflationary momentum. A softer dollar, coupled with the eurozone’s relatively stable outlook, provided tailwinds for EUR/USD.
While technical resistance looms near 1.1270—the year’s former swing high—momentum remains constructive as traders position ahead of the U.S. Producer Price Index (PPI) report. A downside PPI surprise could deepen dollar losses and extend the euro’s bullish streak.
Yen Gains for Third Straight Session on Safe-Haven Demand
The Japanese yen extended its recovery for a third consecutive session, appreciating against the dollar to trade below 143. Strength in the yen continues to be driven by demand for safety amid persistent U.S. trade policy uncertainty and a cautious risk tone across equity markets.
Traders are also eyeing upcoming U.S.–Japan trade talks and recent commentary from BOJ officials who remain wary of the spillover effects from global economic friction. With Japan’s domestic inflation holding firm and sentiment indicators turning positive, the yen may find further support if global volatility persists.
Gold Slips to One-Month Low as Risk Sentiment Improves
Spot gold prices declined to their lowest level in over a month, trading near $3,298/oz, as safe-haven demand waned and U.S. Treasury yields held steady. Although gold typically benefits from geopolitical uncertainty, recent optimism around global trade discussions—particularly following the preliminary US-UK agreement and hopes for a US-China de-escalation—has tempered bullish enthusiasm.
Market focus is now squarely on today’s U.S. PPI data, which could provide key insights into the inflation trajectory and help shape expectations for Federal Reserve policy. A weaker-than-expected print could renew rate-cut speculation and potentially halt gold’s decline.
Outlook:
The interplay between inflation data, central bank expectations, and global trade developments continues to set the tone for markets. Should U.S. PPI data print soft, the dollar’s downside could accelerate, adding fuel to the euro’s rally and supporting a potential bounce in gold.
On the flip side, any upside surprise in producer prices would likely strengthen the dollar temporarily, test the resilience of the recent FX trends, and weigh further on precious metals.
