Housing starts in the United States dropped from 1.307 million to 1.246 million in September. This decline shows changes in the housing market compared to recent months. In the foreign exchange market, the US Dollar strengthened, affecting currency pairs like USD/CAD and USD/JPY. Meanwhile, GBP/USD faced pressure, falling below 1.3400.

Gold Prices Continue to Rise

Gold prices are on the rise, nearing yearly highs around $4,500 per troy ounce. This increase occurred despite higher US Treasury yields and a strong US Dollar. In the cryptocurrency market, Bitcoin remained steady at $90,000, below its 50-day EMA. Ethereum stayed above $3,000, weakened by ETF outflows, while XRP struggled due to decreasing retail demand. Looking ahead, the US Consumer Price Index (CPI) is likely to affect market movements, along with geopolitical factors. A potential US Supreme Court ruling on tariffs could also impact the financial landscape. Additionally, insights from upcoming Fedspeak may shed light on economic policies. The drop in housing starts in September 2025 highlights the impact of high interest rates on the economy. However, strong labor data has pushed back expectations for near-term rate cuts from the Federal Reserve. This situation creates a complicated environment where some parts of the economy are slowing down while others remain strong.

US Dollar Performance Against Major Currencies

In this context, the US Dollar is performing well against other major currencies. For example, the Dollar Index (DXY) rose over 3% in the last quarter of 2025, consistently trading above 105.00. We expect this trend to continue, putting additional pressure on pairs like EUR/USD and GBP/USD, especially with the important US inflation (CPI) report due next Tuesday. Despite the strong Dollar, gold is showing unusual resilience, indicating significant fear in the market. This may be linked to geopolitical tensions and a search for safety that exceeds normal currency correlations. Data from late 2025 shows that central banks globally added a net 228 tonnes of gold to their reserves in the third quarter, the highest quarterly amount ever recorded. On the other hand, the crypto market suggests a clear risk-averse mood in the weeks ahead. With institutional demand declining and the Crypto Fear & Greed Index at a low of 25, indicating “Fear,” it seems the path ahead is downward. We can expect further declines or sideways movement in assets like Bitcoin and Ethereum until market fears ease. Create your live VT Markets account and start trading now.

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