The drop in UK consumer credit from £1.692 billion to £1.491 billion in September shows that UK consumers are borrowing less this month. The Bank of Canada is expected to cut its benchmark interest rate by a quarter point to 2.25%. This follows a recent rate reduction and is part of the bank’s ongoing strategy to make borrowing easier.

US Federal Reserve Rate Cut

The US Federal Reserve is likely to lower its policy rate after its October meeting. The focus will be on the statements and comments from Fed Chair Powell, as no economic data will be released at that time. Solana has teamed up with Western Union, a major money transfer network. Support for Solana is increasing, shown by the Bitwise Solana Staking ETF which had $56 million in trading volume on its first day. The recent decline in UK consumer credit to £1.491 billion confirms the slowing economy we’ve observed developing throughout 2025. With the UK’s third-quarter GDP growth at just 0.2%, we see a chance to protect against further declines in the British Pound. We are considering buying put options on the FTSE 100 index in the coming weeks. As the Bank of Canada is expected to cut its key interest rate to 2.25%, this change is likely already reflected in the currency markets. Canadian inflation has finally decreased to 2.1% last month, giving the central bank a reason to continue its easing approach that started earlier this year. The real trading opportunity will be in any unexpected comments from their statement, making short-term straddles on the Canadian dollar an appealing option for taking advantage of market volatility.

US Federal Reserve Meeting

The upcoming US Federal Reserve meeting is a key event to watch, with Fed funds futures suggesting a 90% chance of a quarter-point rate cut. The US Core PCE inflation, which the Fed prefers, fell to 2.5% in the latest report. This gives Chair Powell the grounds to begin easing. We expect an increase in the VIX index and are preparing for market fluctuations based on how dovish his guidance will be. On the crypto side, Solana’s partnership with established payment company Western Union signals a move towards mainstream acceptance. The $56 million in trading volume on the first day for the new Bitwise Solana Staking ETF shows strong institutional interest, reminiscent of the demand we saw for the first Bitcoin ETFs in 2024. We are looking at buying SOL call options to benefit from this upward trend. Create your live VT Markets account and start trading now.

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