Eurozone’s CFTC EUR net short positions decreased from €125.5K to €123.4K. This reflects changes in euro trading positions. EUR/USD rallied, trading above 1.1550 after disappointing US employment figures. The US Dollar weakened due to weaker Nonfarm Payrolls and ISM Manufacturing PMI data.

Market Rally

GBP/USD recovered, trading positively above 1.3250. This change occurred after US job reports fell short of expectations, leading to a short-term bounce for the pair. Gold prices rose to nearly $3,350, achieving new weekly highs. This rise was fueled by declining US Treasury yields and a revised outlook on the Federal Reserve’s rate plans. The cryptocurrency market faces difficulties despite a strong July. Bitcoin dropped below $115,000 as the market adjusts to challenges, with potential support around $112,000. In the euro area, the economy proved strong over the summer. A deal between the EU and US, along with Germany’s spending plans, improved prospects. However, signs of weaker wage indicators could lead to future cuts. A guide for choosing top brokers for EUR/USD trading in 2025 is available. It features brokers with competitive spreads and fast execution, ideal for both beginners and experienced traders.

Currency And Commodity Trading Strategies

Following a disappointing US jobs report last Friday, the dollar has weakened significantly. Nonfarm Payrolls added only 95,000 jobs, far below expectations, and the July ISM Manufacturing PMI dropped to 48.9, indicating contraction. We should be cautious about holding long positions in the US dollar for now. The EUR/USD is pushing above the 1.1550 level, and this trend may continue. Although large traders are still net short on the euro, their positions are decreasing, suggesting a change in sentiment. With Eurozone inflation steady at 2.5% last month, buying near-term call options on the EUR/USD might capture further gains. The British Pound is showing strength against the dollar, with GBP/USD back above 1.3250. However, we should note recent UK retail sales data from late July showed a surprising decline, hinting at some domestic weakness. Selling GBP/USD put options could be a worthwhile strategy, collecting a premium while betting that the pair stays above key support levels. Gold has surged to nearly $3,350 as US Treasury yields decline. The 10-year yield just fell below 3.90% for the first time since May 2025, often supporting gold rallies, similar to what occurred during the Fed’s easing cycle in 2019. Buying gold futures or call options is a straightforward way to trade this momentum. In the crypto market, we need to be more cautious after a strong July. Bitcoin has fallen below $115,000, and testing the $112,000 support level seems likely in the coming days. Traders may consider buying protective put options or selling out-of-the-money call options if they expect consolidation. The market is reevaluating the Federal Reserve’s future path, leading to significant volatility across asset classes. This environment favors strategies that benefit from price fluctuations, such as long straddles on major currency pairs ahead of upcoming inflation data. The key is to remain flexible, as expectations for future interest rate changes will continue to evolve. Create your live VT Markets account and start trading now.

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