In June, South Africa’s retail sales growth dropped to 1.6%, down from 4.2% the previous year. This shows a clear decline in retail performance. The Euro remained strong, trading above 1.1700 against the US Dollar, supported by a weak USD and better risk sentiment. The British Pound also rose to multi-week highs, exceeding 1.3550 due to positive market sentiment.

Gold And The Market

Gold slightly increased but stayed above $3,350, bolstered by expectations of a dovish outlook from the Fed. However, the positive risk atmosphere limited its potential for further gains. Artificial Intelligence tokens caught the spotlight after Perplexity’s $34.5 billion bid for Google Chrome, with Bittensor, Near Protocol, and Render leading the way. The Bank of England also reduced rates by 25 basis points, bringing them down to 4%, amid concerns about ongoing inflation. For Forex traders, there are suggestions for the best brokers to trade popular currency pairs and commodities. It is important to find brokers offering competitive spreads and reliable platforms, suitable for both beginners and experienced traders. Looking back, South Africa’s retail sales slowing to 1.6% growth in June served as an early warning. Recent data from Statistics South Africa shows a year-on-year contraction of 0.5% for July 2025, confirming this negative trend. This makes put options on South African retail ETFs or shorting the ZAR against the dollar intriguing opportunities for the coming weeks.

Currency And Economic Trends

We recall when the Euro was robust above 1.1700 and the Pound over 1.3550, supported by a weak dollar. As of today, August 13, 2025, the Euro is around 1.1250, and the Pound is near 1.3100, showing a strong return of the dollar. Traders might consider buying call options on the USD index (DXY) or setting up bearish option spreads on these pairs if they expect this trend to persist. The Bank of England’s rate cut to 4% last year feels like a distant past. With UK rates now at 4.5% to combat stubborn service-sector inflation that reached 5.8% last month, there is high policy uncertainty. This scenario is ripe for volatility trades on the Pound, such as long straddles, to profit from significant price movements in either direction. Gold was steady above $3,350, supported by a dovish Fed outlook. Today, it is closer to $3,280, as higher global interest rates create challenges for this non-yielding asset. We are likely dealing with a range-bound market, making strategies like selling covered calls on physical holdings appealing for generating income. The massive Perplexity offer for Google Chrome sparked interest in AI tokens like Bittensor and Render. Since that peak, many of these tokens have corrected by 40%, reflecting the volatile boom-and-bust cycles seen in the crypto markets during 2023 and 2024. Given this high implied volatility, buying long-dated protective put options could be a sensible way to hedge existing positions. Create your live VT Markets account and start trading now.

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