In August, Greece’s unemployment rose slightly to 8.1%, up from 8%. This small increase may signal economic difficulties ahead. Concerns about a possible US government shutdown have weakened the US Dollar, which has impacted foreign exchange markets. Currencies like EUR/USD and GBP/USD have gained as the dollar declines.

Gold And Cryptocurrency Movements

Gold is nearing the $3,900 level, benefiting from safe-haven investments amid uncertainty. Dogecoin and Shiba Inu continue to rise, showing reduced bearish sentiment around these meme coins. Litecoin’s price has increased, now trading above $118, as rising Open Interest offers bullish support. These movements in currencies and commodities reflect wider market trends. The section on brokerage firms provides a detailed guide to the best brokers expected in 2025. It highlights brokers with low spreads and high leverage, catering to cost-conscious traders in the future. Investing involves risks, including potential losses. FXStreet recommends thorough personal research before any trading decisions. The site is not liable for errors or omissions; the content is for informational purposes.

Weakness In The US Dollar

The ongoing US government shutdown shows clear weakness in the US Dollar, a trend to watch closely. The Dollar Index (DXY) has dropped below 104.0 for the first time since July 2025. We believe shorting the dollar is a straightforward strategy. Traders might consider buying call options on major pairs like EUR/USD and GBP/USD to benefit from further declines in the dollar. This shift away from the dollar is driving investments into safe-haven assets, with gold being the prime beneficiary as it approaches the $3,900 mark. We saw a similar pattern during the US debt-ceiling crisis of 2023, where gold surged over 5% in weeks. The CBOE Gold Volatility Index (GVZ) has spiked to its highest this quarter, indicating rising options premiums and expected price fluctuations. While the Euro is gaining from the dollar’s weakness, caution is necessary regarding the overall health of the European economy. The recent rise in Greek unemployment to 8.1% serves as a reminder that the Eurozone’s recovery is uneven. Thus, for now, we should focus on trading the Euro against the dollar instead of other cross-currency pairs. Interestingly, riskier assets like Litecoin and other cryptocurrencies are showing unusual strength, suggesting some traders find them appealing as alternatives to fiat currencies during government instability. Open interest in Litecoin perpetual futures has exceeded $550 million for the first time since early 2025, confirming new investment in this area. This presents a high-volatility opportunity that can be managed with defined-risk options strategies. Create your live VT Markets account and start trading now.

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