On September 16, 2025, China revealed a new policy to stimulate consumer spending. Meanwhile, Japanese officials expressed satisfaction with a new tariff agreement with the US. Swatch has also launched a playful watch design related to tariffs.

Cryptocurrency Forecasts For 2025

In cryptocurrency news, Citi predicts that Ether’s value might hit US$6300 by the end of 2025. The People’s Bank of China has set the USD/CNY central rate at 7.1027. In the US, a proposed oil tariff on China depends on actions from Europe. Lisa Cook, who has been confirmed for the FOMC meeting, is likely to appeal to the Supreme Court after a recent US court ruling. Stephen Miran, Trump’s nominee for the Fed Board, has gained Senate votes for confirmation. Talks about possible changes to quarterly reporting are ongoing, with Trump supporting the idea of eliminating these reports. In the currency market, the USD/JPY saw a slight drop, while major FX pairs showed limited movement. In stocks, Japan’s Nikkei 225 increased by 0.3%, and Australia’s S&P/ASX 200 rose by 0.24%. The Hang Seng in Hong Kong was stable, while the Shanghai Composite fell by 0.2%. Forex trading carries high risks; it’s important to thoroughly assess your objectives and risks. InvestingLive provides education and resources, emphasizing the need for independent research and decision-making.

Federal Open Market Committee Meeting Brings Market Volatility

Today marks the start of the Federal Open Market Committee meeting, and we expect increased market volatility. The CBOE Volatility Index (VIX) has jumped over 8% in the past week, indicating that traders are preparing for sudden market shifts. With a likely rate cut but a cautious stance from Chair Powell, using options strategies like straddles or strangles to bet on significant price movements could be wise. The S&P 500 is close to its all-time high of 6,150, making it susceptible to surprises from the Fed. A similar scenario occurred in late 2024 when an unexpected firm stance from Powell caused a 3% drop in just two days. It may be smart to hedge long equity portfolios by buying put options on major indices like the SPX or QQQ until the Fed’s future direction is clearer. In currency markets, the dollar is drawing attention. Trump’s recent proposal for a 15-20% tariff on EU goods puts pressure on the Euro. The EUR/USD pair is around 1.0550 and could drop sharply if tariff discussions gain traction in Washington. Traders might consider buying puts on the Euro to take advantage of this potential political challenge. We’re also closely monitoring China after the PBoC set a stronger-than-expected Yuan rate and announced plans for more stimulus. This could support China’s economy and benefit China-focused ETFs and the Australian dollar. Options volume on the iShares China Large-Cap ETF (FXI) has risen by 15% this month, suggesting traders are anticipating a rally. Looking ahead, there are discussions about moving U.S. companies to semi-annual earnings reports. This change could consolidate market reactions to two major events each year, likely resulting in larger price swings around those times. This is a trend to watch, as it could fundamentally alter strategies for trading options during earnings season. Create your live VT Markets account and start trading now.

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