Global Market Movements

Global markets are showing varied trends. The AUD/USD is aiming for the 0.6700 mark, and the EUR/USD has recovered to above 1.1700. Gold is nearing $3,800 per ounce, while Bitcoin has stabilized above $114,000, amidst worries about a possible government shutdown. Federal Reserve Chair Jerome Powell described the current economic situation as tough, and there is a dovish outlook in the air. If you’re looking to trade EUR/USD in 2025, we have a list of top brokers to help you in the Forex market. Keep in mind that the information provided may not perfectly reflect reality. Use this information at your own risk, and consider talking to a financial advisor. FXStreet and its writers do not offer personalized investment advice. With the US Dollar showing broad weakness, it’s wise to explore strategies that could benefit from this trend continuing. The Fed’s dovish stance and fears of a government shutdown create a strong challenge for the dollar. Reflecting on the 2018-2019 government shutdown, we noticed a similar pattern where the dollar weakened, favoring safe-haven assets and other currencies.

Opportunities in the Market

Gold is clearly thriving in this climate, nearing $3,800. Buying call options could be a straightforward way to bet on further growth. The uncertainty of a potential government shutdown might also spark market volatility, making longer positions on the VIX using futures or options a smart protective move. Historically, the VIX tends to spike during significant government gridlocks in the U.S. For the EUR/USD, its rise above 1.1700 shows strong momentum, but key data releases this week could create bumps. To manage this, we might consider options to build a bull call spread, allowing us to benefit from potential gains while controlling our costs. This approach helps us ride the uptrend stemming from dollar weakness, with a clear risk profile ahead of the U.S. jobs report. Bitcoin’s stability above $114,000 offers another chance, especially with the promising narrative of “Uptober” coming up. Historically, October has been a strong month for Bitcoin, finishing positively in around 70% of the years since 2013. This trend supports taking a long position. We can also use futures contracts to gain exposure before the Non-Farm Payrolls data, which could bring more volatility and affirm the trend. The slight rise in Mexican unemployment to 2.9% is not expected to affect the overall picture of U.S. dollar weakness. While this is a minor increase, it’s still near multi-decade lows for Mexico, indicating a strong job market compared to early 2020. Any weakness in the Mexican Peso might present an opportunity to enter short positions on the USD/MXN pair. Create your live VT Markets account and start trading now.

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