Emini S&P futures nearly hit 4956/59 before falling back 100 ticks from their all-time high. Support appeared around 6850/40, with a low just above this level, leading to a 53-point bounce. If prices break above 6905, they could reach 6915/25, and a move past 6930 might challenge the 6948/53 peak. Strong support remains at 6850/40, but caution is advised if it drops below 6825. EUR/USD stays stable above 1.1550 despite recent declines, as Eurozone HICP inflation falls to 2.1% in October. Market attention turns to upcoming comments from Federal Reserve officials.

Declines In GBP/USD

GBP/USD is slightly down, hovering below 1.3150 and close to its lowest level since April. The strong US Dollar, supported by hawkish remarks from Fed Chair Powell, complicates recovery efforts. Gold is consolidating above $4,000 after recovering more than 2% from a four-day downturn. Ongoing US-China tensions pose challenges for further gains as the market awaits guidance from the Federal Reserve. Meme coins like Dogecoin, Shiba Inu, and Pepe are facing declines amid a broader sell-off in the cryptocurrency market. These coins risk further losses if market sentiment continues to weaken. Despite speculation about a possible Fed rate cut and a US-China tariff agreement, artificial intelligence remains a major driving force in global markets. The S&P 500 futures have pulled back from their all-time high near 6950, but buyers quickly returned around the 6850 support level. This suggests strong underlying support, likely due to top AI-driven tech stocks, which now account for over 30% of the index’s value. For traders, buying dips in the broader index remains a smart strategy, with options offering protection against sudden sentiment-driven declines.

US Dollar Pressure

The strong US Dollar is putting pressure on both the Euro and the Pound, with GBP/USD dropping to its lowest levels since April. The recent US inflation data from September 2025 shows a stubborn 2.8% reading, making a December rate cut from the Federal Reserve unlikely. This policy gap suggests that shorting the Euro and Pound against the Dollar could remain profitable, especially as the Fed keeps rates steady. Gold is maintaining above the crucial $4,000 mark after a significant rise during the high-inflation period of 2023 and 2024. Although a recent one-year tariff truce between the US and China is limiting immediate gains, gold prices remain historically high. This indicates that traders are using gold as a long-term hedge against potential policy mistakes or renewed geopolitical tensions. Meanwhile, the sharp sell-off in speculative meme coins like Dogecoin and Shiba Inu shows a decrease in risk appetite among investors. The contrast, where speculative assets drop while major indices hold strong, suggests that traders are becoming more selective. This could be a warning that liquidity for riskier assets is tightening, making protective put strategies in volatile sectors a more appealing option. Ultimately, the market’s main focus is on the ongoing artificial intelligence revolution, which has driven significant gains since 2024. Recent government reports revealed a surprising increase in Q3 2025 productivity, attributed to widespread AI adoption in businesses. Therefore, trading strategies should concentrate on the technology sector, as news related to AI is likely to create bigger price movements than traditional economic data. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now