France’s HCOB Manufacturing PMI for October hit 48.8, beating expectations of 48.3. This indicates a slight improvement in the manufacturing sector. In the currency markets, the EUR/USD pair has dipped to a three-month low, approaching the 1.1500 mark due to a strong US Dollar. At the same time, GBP/USD is under pressure, staying in the mid-1.3100s, weighed down by concerns about the UK’s finances.

Gold Prices and Digital Currencies

Gold prices have stabilized around $4,000 after some losses, as traders look ahead to upcoming US economic data. However, digital currencies like Dogecoin and Shiba Inu are facing declines as interest decreases. As the market continues to change, risk sentiment may confront challenges. Meetings of central banks and US data releases will likely influence the strength of the Dollar. In financial forecasts, Cardano’s ADA has fallen below $0.58 due to bearish trends. Analysts mention a drop in on-chain activity and more traders placing short bets. Brokerages are being evaluated for 2025, with attention on Forex, CFD trading, and regulations. Reports are designed to help traders choose brokers in different markets, such as the MENA region and Indonesia.

French Manufacturing Data

The French manufacturing data for October was better than expected at 48.8, but we shouldn’t lose sight of the overall situation. The sector is still in contraction, and Germany’s recent manufacturing PMI was much weaker at 42.1. This puts significant stress on the overall Eurozone industrial sector. The slight improvement is unlikely to change the bearish trend for the Euro, making options like buying put options on EUR/USD seem attractive. The strength of the US Dollar is pushing EUR/USD towards 1.1500, keeping GBP/USD defensive around the 1.3100 mark. This is largely influenced by the Federal Reserve’s actions, especially after the latest US CPI data for October came in at 3.4%, slightly above expectations. The market is now factoring in a higher likelihood that the Fed will hold interest rates steady through the first half of 2026, making future US data releases crucial. For derivative traders, we can expect ongoing volatility in major currency pairs. The VIX index has already risen from 15 to 19 in the past month, indicating increasing uncertainty around Fed policy. Buying straddles or strangles on EUR/USD ahead of the US ISM manufacturing data could be a good strategy to take advantage of potential price movements. Gold is facing challenges, struggling to rise above resistance at $4,045 due to increasing US Treasury yields. The 10-year yield has stabilized around 5.25%, a level that hasn’t been maintained since the aggressive tightening cycle of 2023, creating a headwind for this non-yielding asset. While gold is currently holding at the $4,000 psychological level, a strong US jobs report could easily push it below that. The weakness isn’t restricted to traditional markets; large investors are pulling back from risky assets like cryptocurrencies. The recent sell-offs in coins such as Cardano and Dogecoin indicate that liquidity is being withdrawn from the riskiest areas of the market. This trend often signals a broader move towards risk aversion in the coming weeks. Create your live VT Markets account and start trading now.

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