The Riksbank has decided to keep Sweden’s interest rate at 1.75%, which is what many expected. This choice comes as global markets adjust to different economic challenges. In terms of currency trading, the NZD/USD and USD/BRL pairs are holding strong, with key support levels at 0.5600 and 5.27, respectively. On the other hand, the AUD/USD pair might drop further to 0.6465.

GBP/USD and Gold Prices

The GBP/USD is showing slight gains above 1.3000, as traders await important US economic data. Gold prices have risen to $3,970 due to a risk-off sentiment in the global stock markets. The ADP Employment Report is expected to show 24,000 new jobs in the private sector for October, following a decline in September. Traders are being cautious due to uncertainties affecting risk appetite, even with recent US economic actions. Stellar’s XLM is facing downward pressure, with a possible further drop as a Death Cross pattern appears. Retail demand seems to be fading, suggesting a potential 15% market correction ahead. FXStreet offers thorough brokerage analyses, highlighting the best brokers based on region and trading needs. This information aims to help traders make better decisions about which broker to choose.

Gold and US ADP Data

Amid the market’s nervous atmosphere and the drop in global equities, gold’s rise above $3,970 is clearly a move towards safety. This trend reflects ongoing inflationary pressures since the early 2020s, reinforcing gold’s status as a key hedge. Recent data indicates that gold-backed ETFs had net inflows exceeding $2.5 billion in October 2025, showing that institutional investors are seeking refuge here. Everyone is focusing on the upcoming US ADP and ISM Services data, which will be vital for the US Dollar. The market is preparing for a weak ADP jobs report, with estimates suggesting only 24,000 jobs were added—a figure not seen outside of a recession since before the pandemic. A disappointing report could test the Dollar’s recent strength and lead to significant market volatility, making this a crucial time for USD derivatives holders. For currency traders, the EUR/USD pair is tightly coiled below the 1.1500 level ahead of this important US data. A weak report could push the pair through this resistance, making long positions in Euro futures or call options appealing for a potential breakout. Implied volatility on EUR/USD options has already risen by 5% this week, indicating that the market is preparing for sharp movement. The Riksbank’s choice to hold its rate at 1.75% was widely anticipated, providing no immediate catalyst for the Swedish Krona. With Sweden’s inflation report for October 2025 at 1.8%, just below the 2% target, the central bank has no reason to take aggressive action. This makes the SEK susceptible to overall market sentiment, likely weakening against the dollar if risk aversion persists. We must also address China’s new ban on foreign AI chips for state-funded projects, which impacts commodity currencies directly. This development heightens tech tensions and negatively influences China’s growth outlook, reducing demand for Australian exports. This situation strengthens the bearish case for AUD/USD, which may test lower levels around 0.6465 in the coming weeks. Create your live VT Markets account and start trading now.

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