China’s M2 money supply grew by 8.4% year-on-year in September, down slightly from 8.8%. This indicates a small slowdown in monetary growth. The foreign exchange markets are fluctuating. The Japanese Yen is gaining strength, while the British Pound and Euro are performing moderately against the US Dollar due to current economic conditions.

Volatility in Precious Metals

The precious metal market is quite unpredictable. Gold is currently around $4,200. Investors are being cautious because of geopolitical tensions, the US-China trade conflict, and uncertainties about a US government shutdown, all of which are affecting asset stability. Bitcoin has recently recovered but is still trading below $112,500 amid economic challenges. Increased trade tensions between the US and China continue to hinder Bitcoin’s market performance, posing obstacles to its recovery. In the October 2025 World Economic Outlook, the IMF has slightly raised its global growth forecasts. However, global growth remains slow, with many uncertainties affecting economic stability. Cryptocurrencies like Bitcoin, Ethereum, and Ripple are trying to recover near crucial technical points. These digital currencies face resistance, and traders are mixed in their sentiments, cautious of potential selling pressures.

Evaluating Brokerages for Different Trading Needs

Different brokerages are reviewed to meet various trading requirements, showcasing the best choices for Forex, CFD, and commodity trading. Each brokerage lists its pros and cons to aid in better decision-making. China’s M2 money supply growth has slowed to 8.4%, indicating tighter financial conditions in the world’s second-largest economy. This is the slowest credit expansion in over 18 months, suggesting that earlier stimulus measures are losing their effect. This trend could lead to lower demand for industrial metals and energy, making it a good time to think about put options on commodity-linked assets. The US Dollar is encountering major challenges as the market now expects two more Federal Reserve rate cuts by the end of 2025. Fed funds futures contracts show over a 90% chance of a rate cut at the December meeting, a significant rise in confidence over the past month. This dovish approach, coupled with the economic impact from the ongoing government shutdown, implies that selling USD volatility or using options for further dollar weakness may be a viable strategy. This high level of uncertainty is fueling a significant rally in safe-haven assets, pushing gold to new highs around $4,200 an ounce. This exceeds inflation-driven peaks from 2024, reflecting increased market anxiety about geopolitical risks and a possible US slowdown. To hedge against this, long volatility positions look promising, especially as the VIX index has consistently stayed above 25 points for several weeks. While the dollar is weak, not all currencies are faring equally. The pound is doing better than the lagging euro. Expectations for a Bank of England rate cut in November have diminished, creating a policy divergence from the Federal Reserve that supports GBP/USD pairs. This indicates potential opportunities in options strategies that benefit from a rising GBP/USD or a falling EUR/GBP exchange rate. The risk-averse atmosphere is clearly affecting digital assets, with Bitcoin’s recovery stalling below $112,500. In contrast to gold, cryptocurrencies are not seeing significant safe-haven investments given the current economic pressures. For the next few weeks, Bitcoin should be viewed as a risk-on asset, which could face further declines if US-China tensions worsen. Create your live VT Markets account and start trading now.

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