**Gold’s Upward Trend** The USD/JPY pair has settled around 148.00. Expectations of a possible interest rate hike by the Bank of Japan may help support the Japanese Yen. In the world of cryptocurrency, Solana seems more resilient against supply pressures from Grayscale compared to Litecoin. This belief comes as the SEC is considering whether to approve altcoin ETFs. Ukraine is facing serious challenges regarding its debt sustainability due to the ongoing war. A new IMF program is being discussed to tackle these issues, which may include using frozen Russian reserves. When selecting a broker for EUR/USD trading in 2025, consider factors like competitive spreads and quick execution. Investors should assess their goals, experience, and risk tolerance due to the inherent risks in the foreign exchange market. **US Government Shutdown** The upcoming weeks will focus on the US government shutdown, causing increased risk aversion across markets. This situation is directly impacting risk-sensitive currencies like the Australian Dollar, which has dropped below the 0.6600 level. Historically, such political standoffs lead to heightened volatility; in the last week of September 2025, the VIX surged over 15% as markets prepared for this outcome. This trend toward safety is driving investment into traditional safe havens like Gold, which is now holding steady near record highs of over $3,870 an ounce. As long as the uncertainty of the shutdown continues, this upward trend for gold is likely to remain. Traders in derivatives should watch for potential increases in political tensions, which could push precious metal prices higher. At the same time, the USD/JPY remains stable around 148.00. The US Dollar is being pressured by the shutdown and rising expectations of Federal Reserve rate cuts. However, the Japanese Yen is gaining support from speculation that the Bank of Japan may soon raise rates. This contrast in policies creates a delicate balance, making it challenging to predict price movements in the pair until one of these factors shifts. Despite the general risk-off sentiment, South Korea’s trade surplus for September shows a positive regional trend, rising to $9.56 billion. Recent data from the Korea Customs Service reveals that semiconductor exports increased year-over-year for the fifth consecutive month, indicating strong global tech demand. This economic strength could bolster the South Korean Won (KRW) against other currencies. Given the current uncertainty, using options can be a smart strategy in the market. Buying puts on risk-sensitive equity indices or employing straddles on currency pairs like USD/JPY can safeguard against sharp, unexpected moves influenced by US political events or central bank news. Implied volatility is high, reflecting this market tension, but it may still provide valuable protection against sudden disruptions. Create your live VT Markets account and start trading now.

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