In June, existing home sales in the United States were lower than expected, totaling 3.93 million instead of the predicted 4.01 million. This shows a decline in the housing market. At the same time, the currency markets saw changes in the AUD/USD and EUR/USD. The AUD/USD continued to rise, reaching 0.6600. The EUR/USD also enjoyed four days of gains, approaching the 1.1800 level.

Gold Market Trends

Gold prices fell below $3,400 per troy ounce due to decreased trade worries. Positive news came from the US-Japan trade agreement and possible progress on a US-EU deal. Banks like BNY Mellon and Goldman Sachs are now allowing investments in tokenized funds, which could transform traditional investing. The first half of Trump’s second term emphasized bold policy changes, but the markets have remained stable. Choosing the right broker for trading EUR/USD is key, especially in 2025, when there will be many options with competitive spreads and advanced platforms. Keep in mind that forex trading carries significant risks due to leverage. It’s important to evaluate your investment goals, experience, and risk tolerance before starting. The slowdown in housing sales indicates a weaker U.S. economy. The National Association of Realtors recently confirmed this, noting that sales have dropped for three months in a row and that inventory levels have risen to a 3.7-month supply. Derivative traders might see this as a signal to buy protective put options on major U.S. stock indices.

Forex Market Developments

The rising Australian and euro currencies against the dollar align with this cautious outlook. Data from the CME FedWatch Tool shows a 45% chance of an interest rate cut by the Federal Reserve before the end of the year, a significant increase from 20% last month. We recommend buying call options on the EUR/USD pair to prepare for further dollar weakness. The recent decline in gold prices reflects easing trade tensions, but this might only be temporary. Historically, gold prices tend to move opposite to the U.S. dollar, and a slowing economy could ultimately support gold prices. This mix of influences suggests increased volatility, making strategies like straddles on gold ETFs an interesting option for profiting from large price fluctuations. The move by firms like Mellon and Goldman to adopt tokenized funds indicates a major long-term change in the market. Though it may not be an immediate trading factor, Boston Consulting Group projects this market could grow to $16 trillion by 2030. We are watching for new derivative products related to these assets, which will create new trading opportunities. Market resilience during the current administration shouldn’t be seen as low risk. In Trump’s previous term, the CBOE Volatility Index, or VIX, spiked over 40% in response to policy announcements. Traders should stay hedged against sudden market volatility, as historical trends show that policy shifts can quickly disrupt market stability. Create your live VT Markets account and start trading now.

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