The recent 4-week bill auction in the United States shows a yield of 3.875%, down slightly from 3.91%. In currency markets, the EUR/USD is gaining ground due to weak US job data, raising expectations for Federal Reserve rate cuts. The GBP/USD has reached new highs around 1.3140, while Gold is rebounding and aiming for the $4,000 mark. On the other hand, Ethereum has dropped below $3,300 during a broad market sell-off.

Broker Recommendations For 2025

Several brokers have shared their recommendations for 2025, focusing on key trading markets and platforms. This includes insights on the best brokers for different currencies, regions, and trading conditions, such as high leverage or Islamic accounts. Readers are encouraged to do their own research before making investment decisions. The information provided may include forward-looking statements and risks. FXStreet does not guarantee the accuracy or timeliness of this information and is not liable for any related errors or losses. The weak US job data signals that the Federal Reserve might cut interest rates soon. The latest Non-Farm Payrolls report showed the economy gained just 95,000 jobs last month, well below the expected 170,000. We should consider purchasing call options on EUR/USD and GBP/USD to benefit from a further decline in the dollar over the next few weeks.

The Strength Of The Pound

The pound is showing notable strength, rising past 1.3140 as the Bank of England keeps its rate steady. This creates a policy split with the Fed, similar to the divergence of late 2023 that drove the pound higher. Traders might consider bull call spreads on GBP/USD to take advantage of this upward movement while limiting their costs. Gold’s climb toward $4,000 is linked to declining US yields and a weaker dollar, which makes holding gold more appealing. Central bank purchases are a significant factor; the World Gold Council reported that over 800 metric tons were added to global reserves in 2024, providing a solid price support. We think buying call options with strike prices at $4,000 and $4,050 offers a favorable risk-reward balance. In the cryptocurrency market, we are seeing a clear shift in investment. Ethereum’s drop below $3,300, alongside Solana’s recovery, indicates that traders prefer newer narratives like the introduction of Solana ETFs. This mirrors the launch of spot Bitcoin ETFs in 2024, which attracted significant inflows. A pairs trade involving going long on SOL futures while shorting ETH futures could help protect against overall market declines while taking advantage of Solana’s relative strength. Create your live VT Markets account and start trading now.

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