The CFTC S&P 500 non-commercial net positions have dropped from $-140K to $-167.8K. The EUR/USD pair has risen above 1.1650, thanks to a decrease in US consumer inflation expectations. Likewise, GBP/USD has increased past 1.3450 due to a weaker USD and changing market sentiment.

Gold and Cryptocurrency Updates

Gold is on the rise, holding steady above $3,350 as US Treasury bond yields fall and the USD weakens. In the cryptocurrency space, Bitcoin is trading above $120,000 and is close to its all-time high. Ethereum is targeting $4,000, while Ripple has reached a new record high of $3.66. China’s GDP growth is robust, sitting at 5.2% for the second quarter, driven by trade and industrial production. However, slowdowns in investment and retail sales, along with falling property prices, raise concerns. Many brokers provide competitive spreads and quick execution for trading EUR/USD, serving both beginners and experienced traders in the Forex market. It’s important to do thorough research and find the right broker to handle trading challenges effectively.

Market Sentiment and Strategy Insights

The increase in net short positions in the S&P 500 indicates growing bearish sentiment among large traders, which we find significant. Historically, similar levels of short selling have often foreshadowed increased market volatility or downturns. We recommend hedging existing long positions with put options or starting new short positions on index futures. We believe the rise in major currency pairs against the dollar is an important trend, driven by changing interest rate expectations. The recent University of Michigan survey shows that consumer one-year inflation expectations have fallen to 3.1%, strengthening the case for a less aggressive Federal Reserve. Derivative traders should think about taking long positions in EUR and GBP futures or buying call options to benefit from this dollar weakness. Gold’s recent gains, now around $2,350 per ounce, are closely linked to the drop in US bond yields. The 10-year Treasury yield falling below 4.3% makes non-yielding safe havens more appealing. This situation suggests it’s a good time to hold or increase long positions in gold through futures contracts. The ongoing cryptocurrency rally, with Bitcoin near $67,000, shows high speculative interest in certain market segments. While there’s caution in traditional equities, capital is still being invested in high-beta assets. We suggest approaching this sector with clear risk strategies, like using options to engage with the upside while minimizing potential losses. China’s mixed economic signals pose a considerable risk to global growth and corporate earnings. Although GDP is strong, weaknesses in the property sector and a youth unemployment rate of 14.7% are concerning. This reinforces our cautious outlook on multinational companies that depend on that market for growth. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now