Ireland’s Consumer Price Index dropped to -0.2% in September, down from 0.4% the month before. This points to a decline in consumer prices during that time. The newsletter aims to give insights, not just headlines, to its subscribers. It is sent daily to their inboxes, and subscribers also agree to receive promotions and offers.

Market Currency Updates

In related news, the Euro has reduced its losses against the Swiss Franc because of the European Central Bank’s steady monetary policy. The GBP/JPY has dropped after a four-day rise, with markets reassessing the Bank of Japan’s policy. Gold remains strong near its high levels, boosted by expectations of possible FED rate cuts and a prolonged US government shutdown. The Euro has weakened due to disappointing German trade data. The Canadian Dollar (CAD) is stable ahead of a speech from Bank of Canada Senior Deputy Governor Rogers. Meanwhile, the EUR/USD pair is low, with all eyes on the decisions made by the FED. In the cryptocurrency market, Bitcoin has fallen to nearly $121,000 amid profit-taking and a cautious attitude. Ethereum and Ripple also saw declines, losing the gains from their recent recoveries.

Eurozone Economic Concerns

The drop in Irish consumer prices to -0.2% raises alarm bells for the entire Eurozone, especially as the European Central Bank maintains its steady approach. This could be a sign of broader deflationary trends, similar to the low-growth period in the mid-2010s. The gap between disappointing data and a passive central bank suggests further weakening for the Euro. We are considering buying EUR/USD put options with strikes around 1.1450 that expire in November. Breaking below the 1.1600 level is technically important, as past occurrences of such breaks have led to extended selling. This strategy provides a controlled way to prepare for a drop towards the 1.1300 mark. The ongoing US government shutdown is driving investors toward safer assets, boosting the US Dollar despite predictions of Fed rate cuts. This situation reminds us of previous risk-off events, where the dollar’s reserve status outweighed short-term domestic policy concerns. A Congressional Budget Office report estimated that the 2019 shutdown cost the economy $11 billion, highlighting the economic impact that pushes investors to safe havens. With Gold holding steady near $4,000 an ounce, it benefits from both the uncertainty of the shutdown and expectations of a more lenient Fed policy. Central banks have consistently bought gold over the past few years, with the World Gold Council reporting net purchases of over 800 tonnes in 2023, creating strong demand. We believe call options on Gold futures are a good way to take advantage of potential gains while limiting risk if market sentiment changes. Create your live VT Markets account and start trading now.

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