On August 28, 2025, Nvidia shares dipped during the European morning session. This occurred alongside China’s announcement of a trade negotiator’s planned visit to the US. The European Central Bank highlighted steady growth in the Eurozone, discussing options for maintaining interest rates while keeping an eye on trade developments. The Bank of Japan will base its policy decisions on solid data. The Eurozone’s final consumer confidence for August was -15.5. Additionally, the M3 money supply in July increased by 3.4% year-on-year, which was slightly lower than anticipated. Business confidence in Italy came in at 87.4, just above expectations, and Switzerland’s Q2 GDP rose by 0.1%, meeting forecasts.

Currency And Commodity Markets

In the markets, the Yen and Australian Dollar performed well, while the US Dollar lagged. European stocks showed mixed results, and S&P 500 futures stayed flat. The yield on US 10-year bonds dropped by 0.4 basis points to 4.234%. Gold saw a modest 0.2% increase, but WTI crude oil fell by 0.1%. Bitcoin rose by 0.5%, reaching $113,033. Traders remained cautious ahead of the US jobs report next week. The dollar weakens slightly, impacted by month-end rebalancing suggesting mild selling. European stocks exhibited varied movements, with Nvidia shares down just a bit in pre-market trading. Treasury yields held steady, and gold attempted to push above the $3,400 mark. With month-end caution creating a “tread carefully” atmosphere, market conviction appears low. The CBOE VIX index sits around 14, indicating a sense of complacency, which might be an opportune time to consider buying volatility ahead of next week’s US jobs report. The last report showed job growth cooling to a moderate 185,000, meaning any deviation could lead to a sharp market reaction.

Equities And Gold Insights

The US dollar is showing signs of weakness, with month-end rebalancing models suggesting continued mild selling. This trend could make short-term call options on currency pairs like EUR/USD and AUD/USD appealing, as they demonstrate relative strength. The broader dollar index (DXY) has struggled to maintain momentum above 104 for most of this quarter, hinting at potential downside. In equities, Nvidia’s slight decline after earnings may indicate some fatigue in the tech sector’s leadership. Similar patterns of profit-taking in major tech stocks occurred in 2023, often leading to broader market consolidation. This situation suggests that using options to hedge long positions, like buying puts on the Nasdaq 100, could be a wise strategy for the upcoming weeks. Gold is trying to break out of its consolidation phase, with a key resistance level at $3,435-$3,450. As US 10-year yields decrease, conditions are becoming more favorable for gold. A move above this resistance could be swift, so buying call options with a strike price just above $3,450 could be a way to position for this potential trend with manageable risk. Create your live VT Markets account and start trading now.

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