The Personal Consumption Expenditures (PCE) Price Index in the United States for June rose by 2.6% compared to last year. This was higher than the expected 2.5%, showing that consumer prices increased during this month. The EUR/USD currency pair moved upward, approaching the 1.1450 level, thanks to a weaker US dollar following positive employment and PCE data. In a similar trend, GBP/USD fluctuated and went slightly over 1.3200 after the US data was released.

Gold And Bitcoin Overview

Gold faced resistance at $3,300 per troy ounce due to falling US yields and a weaker dollar. On the other hand, Bitcoin remained steady within the $116,000-$120,000 range, supported by buying from large investors and clearer regulations in the market. The Federal Open Market Committee (FOMC) is divided on how tariffs will affect the economy. The main debate is about whether these tariffs will significantly affect labor markets or push inflation higher. The June PCE data, indicating a 2.6% increase, adds uncertainty. This unexpected rise in inflation makes the Federal Reserve’s next steps more complicated, especially since the committee is split. We should expect more market fluctuations, especially with the July employment report coming out next week. Looking back, the aggressive rate hikes to fight the high inflation from 2023-2024 make the Fed cautious now. The market seems to believe that the Fed will accept this small inflation spike to protect jobs, which explains the weakening of the US dollar despite higher inflation.

Currency Pairs And Strategic Moves

The move of the EUR/USD pair towards 1.1450 is gaining traction, supported by the weaker dollar and a resilient Eurozone economy. Recent purchasing managers’ index (PMI) data from Germany and France exceeded expectations, with the composite Eurozone PMI for July reaching 51.5. We see chances to buy call options on the Euro to benefit from a continued uptrend through August. Similarly, the GBP/USD shows bullish signs as it crosses 1.3200, especially with the UK’s inflation for June being 2.9%. This puts pressure on the Bank of England to maintain a strict stance compared to the cautious Fed. Traders might consider using bull call spreads on the pound to take advantage of potential gains while managing risk. Gold’s attempt to break through the $3,300 resistance is a result of falling US real yields and a softer dollar. Historically, gold performs well in such conditions, and World Gold Council data for Q2 2025 showed record central bank purchases of 250 metric tons. We believe that selling out-of-the-money put options below the $3,200 level is a good strategy for earning premium. Bitcoin’s stability between $116,000 and $120,000 indicates a solid accumulation phase. This support level is backed by steady institutional investments following the SEC’s approval of two more spot Bitcoin ETFs in June. Data from the options market for August shows significant interest in call options at the $125,000 strike price, hinting that many traders are preparing for a price breakout. Create your live VT Markets account and start trading now.

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