The manufacturing Purchasing Managers’ Index (PMI) for Singapore was 50.1 in October, showing a slight growth in the manufacturing sector since it’s above the neutral 50 line. The USD/CHF currency pair hit a three-week high due to a weak inflation report and a strong US Dollar. Meanwhile, the GBP/USD pair remained steady as traders waited for the Bank of England’s interest rate decision.

Gold Prices and Meme Coin Trends

Gold prices stayed around $4,000 per troy ounce, but gains were limited by a strong US Dollar and cautious comments from Federal Reserve officials. Meme coins like Dogecoin and Shiba Inu are facing declines as major investors sell off their holdings, increasing supply pressure. Cardano’s (ADA) price dropped by 6%, trading below $0.58 after a 10% fall the week before. This drop is linked to lower on-chain activity and more traders taking short positions, which shows growing pessimism in the market. FXStreet shares insights based on expert analysis and emphasizes that this information isn’t investment advice. It highlights the importance of personal research before making investment choices, as trading in open markets comes with risks.

Singapore PMI and Global Demand Implications

Singapore’s manufacturing PMI of 50.1 suggests ongoing stagnation, marking the fourth consecutive month around the neutral 50 point. This weakness in a major Asian trade hub indicates that global demand is still weak. Therefore, it becomes more appealing to hold assets in stronger economies. The US Dollar is very strong, with the Dollar Index (DXY) now above 112, levels not seen consistently since late 2022. This strength is driven by a hawkish Federal Reserve, especially after the latest Core PCE inflation data came in at 3.1%, well above their target. This trend is likely to continue as long as the Fed focuses on combating inflation. As a result, the EUR/USD struggles near three-month lows, with little indication of a rebound. Similarly, GBP/USD is under pressure ahead of the Bank of England’s decision this week, where markets expect a 75% chance of no changes due to a fragile UK financial situation. Buying put options on these pairs could be a smart move for further dollar gains. Gold’s failure to maintain the $4,000 level raises concerns for bulls. The strong dollar coupled with rising US Treasury yields creates significant challenges for this non-yielding precious metal. Selling call options above this key level could be an effective way to benefit from limited upside potential. We’re also seeing stress signs in risk assets, with interest in meme coins declining and broader stock indices lagging behind a few tech giants. This kind of narrow market leadership often leads to increased volatility. Therefore, traders might want to consider buying protection, like put options on the S&P 500, to guard against a possible market downturn in the coming weeks. Create your live VT Markets account and start trading now.

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