The HCOB Composite PMI for France dropped to 48.1 in September, falling short of the 48.4 forecast. In the US, the Institute for Supply Management is about to release the Services PMI for September, which is crucial for assessing business performance. Gold reached its peak early in the European session but couldn’t hold onto its gains. This happened as the market anticipated two more interest rate cuts by the US Federal Reserve this year. The GBP/USD exchange rate rose, staying steady above 1.3450 during Friday’s European trading, with attention on the upcoming ISM Services PMI.

Surge in Decentralised Finance Tokens

Decentralised Finance tokens, including Ether.fi (ETHFI) and PancakeSwap (CAKE), are driving a boom in the cryptocurrency market, alongside SPX6900 (SPX). Meanwhile, EUR/USD moved closer to 1.1750 in Friday’s European trading, as the US Dollar weakened due to a government data blackout and expected Fed rate cuts. FXStreet has launched a new design to tackle editorial and strategic challenges. This update aims to provide traders with the essential tools they need to navigate market changes. Readers should thoroughly research before making investment decisions, as Open Markets carry inherent risks. We are examining past market snapshots that highlight familiar weaknesses, particularly from Europe. The French PMI falling short of expectations has been a recurring issue, showing sluggishness continuing into 2025. This suggests that strategies betting against significant Euro strength might be beneficial, especially since recent Eurozone inflation data for September 2025 indicated a drop to 2.7%, putting pressure on the ECB. The outlook for a weak dollar and multiple Fed rate cuts back then was influenced by fears of a government shutdown and early signs of a cooling job market. Fast forward to today, October 3, 2025, and the Federal Reserve has already finished its 2024 easing cycle and is currently holding steady. With the US unemployment rate stabilizing around 3.9% for most of this year, betting on a weak dollar now carries more risk.

Analysis of GBP/USD and Gold

It’s important to note that cable’s climb to 1.3450 mentioned in the past was overly optimistic and didn’t materialize, as the pair struggled to stay above 1.28 throughout 2024. Today, with the Bank of England still dealing with persistent core inflation, the future direction of the pound remains uncertain. This suggests range-trading strategies for GBP/USD, using derivatives to take advantage of volatility within the 1.25-1.29 channel. Gold’s response to rate cut speculation and geopolitical tensions remains a classic scenario we are witnessing now in late 2025. After breaking records and surpassing $2,100 an ounce in late 2023, the metal has established a new support level. Traders should consider long-dated call options to capitalize on sudden price increases caused by ongoing global uncertainties. The previous DeFi rally, with tokens like ETHFI at the forefront, serves as a reminder of how quickly market sentiment can shift toward riskier assets. We saw that enthusiasm wane in the following months, a common pattern after major events like the 2024 Bitcoin halving. For today’s traders, this emphasizes the importance of protective puts on volatile crypto positions, as these markets are still more influenced by narratives than by fundamentals. Create your live VT Markets account and start trading now.

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