The unemployment rate in Canada is predicted to increase as the job market begins to cool down. This trend may lead to more interest rate cuts, while the Canadian Dollar stays below the 1.4000 mark. US tariffs remain a significant part of foreign policy and are used as a financial tool. Despite changes in media coverage, these tariffs are upheld, and the government has confirmed their continued use as a policy measure.

Coinbase Mastercard and BVNK

Coinbase and Mastercard are in talks to potentially buy the stablecoin company BVNK. This deal is estimated to be worth between $1.5 and $2.5 billion, but its outcome is still uncertain as discussions continue. The EUR/USD pair has bounced back, moving closer to 1.1600 after recent drops. This increase aligns with the upcoming US Consumer Sentiment data from the University of Michigan. The GBP/USD is stabilizing around 1.3300 after recent declines, aided by cautious remarks from Bank of England officials and a recent correction of the USD. The anticipation of US data is affecting this pair’s movement. Gold prices are facing pressure, trading below $4,000, even though there hasn’t been ongoing selling. The USD’s slight pullback and factors like expectations of Fed rate cuts offer some support for gold amid geopolitical and economic worries.

Canadian Unemployment Rate and USD Tariffs

The Canadian unemployment rate has risen to 6.4% as of September, paving the way for more rate cuts from the Bank of Canada. This reaffirms our belief, which we’ve held since summer 2025, that the Canadian Dollar will stay weak against the USD. We recommend buying put options on the CAD/USD pair, aiming for a drop below 1.3800 in the next few weeks. The US tariff policy continues to create unseen market fluctuations, even when not in the spotlight. For instance, the confirmed 25% tariffs on European automotive parts still impact the industry. Buying call options on the VIX, currently around 18, could offer a cost-effective way to protect against a sudden rise in trade tensions. The potential $2 billion purchase in the stablecoin sector by Coinbase and Mastercard signals strong institutional interest in digital assets. This consolidation reflects a maturing market, similar to the tech mergers and acquisitions trend seen in the early 2020s. We believe long-term call options on key crypto ETFs are becoming an appealing addition for growth-focused portfolios. The euro is experiencing a temporary rise toward 1.1600, primarily because the USD is taking a pause after its recent climb. The University of Michigan Consumer Sentiment index was slightly disappointing at 68.5, prompting traders to cash in on long USD positions. We view this as a chance to sell call spreads on the EUR/USD, as we anticipate the dollar’s overall strength will return. The pound is stabilizing around 1.3300, supported by cautious comments from Bank of England officials about policy easing. With UK core inflation still high at over 3%, the market isn’t expecting significant rate cuts yet. This indicates a likely range-bound trading environment, making strategies like an iron condor on the GBP/USD appealing for collecting premium in the upcoming weeks. Gold’s struggle to stay above $4,000, despite supportive factors like potential Fed cuts and geopolitical risks, is noteworthy. CFTC data from last week showed a decrease in speculative net long positions for the third week in a row, reflecting waning confidence among bulls. With strong support around the $3,950 level, selling out-of-the-money put options on gold futures might be a smart move for generating income. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now