MBA mortgage applications in the United States went up by 7.1% as of October 24, marking a rebound from a previous decline of 0.3%. This indicates a shift in consumer behavior in the mortgage market.

Market Focus

Market focus includes the expected decision from the Federal Reserve on interest rates and how this will affect currency pairs and assets like EUR/USD and gold. The GBP/USD is currently testing the 1.3200 level, drawing attention to currency performance. Additional insights come from Bank of Canada Governor Macklem’s outlook and the stability of the EUR amid developments from the Federal Reserve and the European Central Bank. Gold remains above $4,000, reflecting investor sentiment influenced by federal decisions. Western Union plans to introduce USDPT on Solana in response to rising demand for exchange-traded funds. There are also lists available to help traders find the best brokers for 2025, making it easier to choose platforms for currency and commodity trading. FXStreet offers these insights for informational purposes and encourages individual research when making investment decisions. There are disclaimers about potential risks of significant investment losses and that information accuracy is not guaranteed. FXStreet and the author of this article are not responsible for any investment outcomes based on the provided insights.

Federal Reserve Decision

Many expect the Federal Reserve to cut interest rates this week, marking a big change from the aggressive rate hikes of 2022 and 2023. Recent data shows that US GDP growth for the third quarter of 2025 has slowed to just 0.5%, which puts pressure on the Fed to take action. This shift towards easing is currently the biggest factor impacting all markets. The housing market is showing clear signs of anticipation, as mortgage applications rose by 7.1% last week. This surge isn’t necessarily a sign of economic strength; instead, it reflects a rush by borrowers wanting to secure rates before the Fed makes its decision. Derivative traders should interpret this as evidence that the market is fully prepared for a more dovish stance from the central bank. As a result, the US Dollar is under pressure, which explains the EUR/USD challenging the 1.1650 mark and the GBP/USD testing 1.3200. With the Bank of Canada already lowering rates, a global trend toward easing is emerging, but the Fed’s actions will have the most impact. Options traders should expect increased volatility in major currency pairs, especially around the announcement time. Gold remains solidly above $4,000 per ounce, indicating a strong shift towards safety among investors. This price level, a historical high, not only reflects expectations of a weaker dollar and lower yields but also concerns around the upcoming Trump-Xi meeting. It’s likely that gold futures and options will see high trading volumes as speculators position for a potential upward trend if the Fed indicates a series of cuts. With this setup, traders should be ready for significant fluctuations following the Fed’s statement. They might consider using volatility derivatives, like options on the VIX index, to protect against unexpected outcomes or a more aggressive dovish message than anticipated. The focus should not only be on the rate cut itself but also on the Fed’s guidance regarding future policy. Create your live VT Markets account and start trading now.

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