The Consumer Price Index (CPI) in Argentina rose to 2.1% in September, up from 1.9% earlier. In the foreign exchange market, the People’s Bank of China (PBOC) set the USD/CNY reference rate at 7.0995, slightly lower than the previous rate of 7.1021. Gold prices have jumped above $4,150 due to safe-haven investments tied to US-China trade tensions, while silver is nearing $52.00, also affected by these issues.

Euro and Pound Movement

The EUR/USD currency pair increased past 1.16 after Fed Chair Jerome Powell’s neutral remarks and new plans for France’s pension reforms. Meanwhile, the GBP/USD pair rose above 1.3300 as the US Dollar weakened and following a labor market report from Britain. Ethereum’s open interest has dropped to its lowest level since May, reflecting less crypto leverage in the market. The CME has now surpassed Binance as the largest market for futures, affecting the cryptocurrency landscape significantly. Several platforms are noted as leading brokers for trading in various markets in 2025. This guidance is purely informational and not a recommendation for investment. Readers are encouraged to do their own research before making investment choices, as all markets carry risks and uncertainties.

Strategy for Safe Haven Assets

With rising US-China trade tensions, we recommend focusing on safe-haven assets in the coming weeks. Gold has surged past $4,150, a significant leap from the nearly $2,400 we saw in 2024. It’s wise to consider buying call options on gold and silver ETFs to benefit from potential further increases while managing risks since outright shorting could be too risky right now. The US Dollar is declining due to Fed Chair Powell’s neutral-to-dovish comments, leading to speculation about future rate cuts—a departure from the tightening cycle that concluded in 2023. Traders might explore put options on dollar index funds or think about shorting USD futures to take advantage of this downward trend. This weakness in the Dollar is benefiting other key currencies, such as the Euro and the Pound. The EUR/USD move above 1.16 presents a chance to use long call option spreads for exposure to a possible rally toward multi-year highs. The GBP/USD above 1.33 shows similar potential, but we advise caution given the weakness in the UK’s recent labor market data. The Australian Dollar shows a more complicated situation, suggesting a strategy based on volatility is wise. The Reserve Bank of Australia (RBA) is pointing to stronger-than-expected inflation, which is positive for the Aussie, but its fate hinges on Chinese economic data, which is uncertain due to trade tensions. We recommend using options straddles on AUD/USD to trade anticipated sharp movements without choosing a specific direction. Create your live VT Markets account and start trading now.

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