Italy’s retail sales for August unexpectedly dropped by 0.1%, while experts anticipated no change. This slight decrease hints at potential economic struggles as focus shifts to wider market trends. Gold prices rose, reaching around $3,870 per troy ounce. This increase came alongside a weakening US dollar and fluctuating US yield curves, amid worries about the economic impact of the ongoing US government shutdown.

US ISM Services PMI Outlook

The US ISM Services PMI will be released soon and is expected to show continued growth in the sector. This report coincides with the release of US Nonfarm Payrolls, which may overshadow its immediate effects. FXStreet has launched a new design to better assist traders by tackling various editorial and business issues. In the cryptocurrency realm, Pump.fun showed positive signs, trading above $0.0070, ignoring minor dips in major currencies like Bitcoin and Ethereum. For 2025, a comprehensive guide on the best brokers is available, outlining various options for different trading needs in global markets. It’s important to conduct thorough research and understand the risks involved in market investments.

Market Reactions To US Shutdown

Due to the ongoing US government shutdown, the US Dollar is significantly weaker. Historically, such events create prolonged uncertainty; for instance, the 35-day shutdown from 2018-2019 is estimated to have reduced quarterly GDP by 0.2%. In the coming weeks, traders may want to consider strategies that benefit from a falling or stagnant dollar, like buying puts on the dollar index (DXY). Gold is the biggest winner in this uncertain environment, inching towards $3,870 per ounce. This is a typical safe-haven trend and likely to continue until a clear resolution emerges in Washington. Purchasing call options on gold futures or gold-backed ETFs could provide further gains, as this upward movement may have more potential. The EUR/USD is trading higher, close to 1.1730, reflecting dollar weakness rather than any strength in the euro. Italy’s disappointing -0.1% retail sales figure for August highlights ongoing weakness in the Eurozone. With recent Eurostat data showing September inflation around 2.1%, the European Central Bank is unlikely to adopt a more aggressive stance, which could limit the euro’s rise. We’re also keeping an eye on the British Pound, which is maintaining gains around 1.3450 against the dollar. However, the recent S&P Global/CIPS UK Services PMI reading of 49.3 for September suggests the sector is contracting, making it challenging for the Bank of England. Upcoming comments from Governor Bailey may lead to significant volatility, making a straddle options strategy an attractive option for trading this event. The Japanese Yen remains under pressure, with pairs like GBP/JPY nearing 198.00. Political uncertainty ahead of the LDP vote and the Bank of Japan’s ongoing loose monetary policy are affecting the currency. Even with Japan’s core inflation at 2.8% as of August 2025, the central bank’s inaction points toward continued yen weakness. Create your live VT Markets account and start trading now.

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