Eurozone M3 Money Supply

In September, the Eurozone’s M3 money supply rose by 2.8% compared to last year, surpassing the expected 2.7%. This increase shows a slight growth in the money available in the economy. The Euro’s value fluctuated, with the EUR/USD finding support above 1.1600 due to a weaker US Dollar and positive news from US-China trade talks. However, challenges persist because of ongoing political issues in France. The GBP/USD climbed toward 1.3350 thanks to new optimism surrounding trade agreements. Yet, worries about UK budget deficits could slow down the Pound Sterling’s progress. Gold prices fell as excitement over US-China trade discussions overshadowed expectations for a Federal Reserve rate cut. This shift increased demand for riskier investments, reducing gold’s attractiveness. US President Trump and China’s Xi are expected to meet, and market reactions may hinge on anticipated Federal Reserve actions. Investors are showing more doubt about the US Dollar, turning to alternatives like Gold and Bitcoin.

Solana’s Growing Confidence

Solana (SOL) is on the rise, trading above $204, fueled by increased on-chain activity and institutional interest. Confidence in Solana’s long-term prospects is growing, as seen in recent market behavior. The slight increase in the Eurozone M3 money supply to 2.8% for September is minor, but it gives the European Central Bank less reason to ease policy. This situation could help stabilize the Euro, which is facing challenges from the ongoing political crisis in France regarding budget reforms. The contrast between a weak US Dollar and specific European risks may keep the EUR/USD pair tightly trading around the 1.1600 level. For traders, selling volatility on the Euro could be a smart move in the coming weeks. Options strategies centered around the 1.1600 mark could be profitable as long as the optimism from US-China trade talks or the French political situation doesn’t cause a major shift. The market seems balanced, suggesting the pair will stay contained. The main factor driving the market is the continued weakness of the US Dollar. With recent US inflation data from early October 2025 showing core CPI cooling to 3.1%, the Federal Reserve can cut interest rates again next month. This marks a significant turn from the aggressive rate hikes of 2022 and 2023 and supports a broader narrative of “Great Debasement.” Given this context, derivative traders should hold positions that benefit from a falling dollar. Buying call options on commodity-linked currencies like the Australian Dollar or using futures to short the US Dollar Index (DXY) could be effective. Any temporary strength in the Dollar during market uncertainty should be seen as a chance to enter new short positions. Gold is now priced above $4,100 an ounce, reflecting a long-term decline in trust in fiat currencies. While short-term excitement from US-China trade talks is creating some selling pressure, this is likely temporary. According to the World Gold Council, central banks purchased over 200 tonnes of gold in the third quarter of 2025, showing strong demand. The strategy for gold derivatives should be two-fold. In the short term, easing geopolitical tensions might limit price increases, making covered call strategies appealing for those holding physical gold. In the long run, any dip below $4,000 should be viewed as a great opportunity to buy long-dated call options to benefit from the ongoing currency debasement trend. We see a similar trend in the crypto market, where institutional interest continues to boost prices. Solana’s rise toward $230 is driven by more than just retail interest; it follows last week’s news of a major asset manager filing for a spot Solana ETP in the United States. This suggests that capital is looking for alternatives to traditional monetary systems. For those trading crypto derivatives, the upward momentum in assets like Solana remains strong. Using call options can help participate in the price increases while managing risk, which is wise given the asset’s volatility. The positive sentiment and influx of institutional capital indicate that buying on dips is likely to remain a rewarding strategy. Create your live VT Markets account and start trading now.

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