The Italian HCOB manufacturing PMI hit 49.9 in October, surpassing the expected 49.2. This shows that the Italian manufacturing sector is nearly stable. In the currency markets, the EUR/USD dropped to around 1.1500, the lowest it has been since early August. The GBP/USD also fell to the mid-1.3100s, reaching its lowest point since mid-April due to fiscal concerns in the UK.

Gold And Cryptocurrency Trends

Gold stayed steady at about $4,000 after a decline last week. This was influenced by soft comments from the US Federal Reserve and rising U.S. Treasury yields. Cryptocurrencies like Dogecoin, Shiba Inu, and Pepe are under pressure as large investors reduce their positions. Investor confidence is shaky due to upcoming US data and central bank meetings for the Australian and British currencies. Cardano’s ADA price dropped 6% to below $0.58 as traders place more short bets. FXStreet offers insights but warns that investing involves risks, including the loss of all capital. It’s important to exercise caution as they can’t guarantee information accuracy. Independent research is recommended before making investment choices.

The US Dollar Outlook

The US Dollar is the currency to watch, and it is expected to remain strong in the coming weeks. Hawkish comments from the Federal Reserve are fueling this trend, especially with core inflation rising to 3.5% last quarter after a long decline. This increase in inflation is making it less likely for the Fed to ease policies. This situation puts pressure on the Euro, which is now testing the 1.1500 level against the dollar. Although the latest Italian manufacturing figure was slightly better than expected at 49.9, it remains below the 50 mark, indicating economic struggles in the Eurozone, which had a composite PMI of 48.5 last month. The European Central Bank is signaling stability, widening the policy gap between it and the Fed. A similar trend is seen with the British Pound, which is near its lowest levels since April. The market is anticipating a rate cut from the Bank of England, and renewed fiscal issues, reminiscent of late 2022’s turmoil, are affecting market sentiment. Traders might want to consider buying put options on EUR/USD and GBP/USD to profit from potential declines. Gold is stable around $4,000 but could be at risk of a pullback. The strong dollar and rising US Treasury yields pose challenges for gold, which does not provide interest. The 10-year Treasury yield rose above the critical 5.0% level last week, raising the costs of holding gold. A cautious mood in the markets is reflected in cryptocurrencies, where speculative assets like Dogecoin and Shiba Inu are sharply selling off. We’ve seen significant capital leave these meme coins over the past two weeks, with over $500 million exiting these markets according to on-chain data. This shift away from risk reinforces the US Dollar’s appeal as a safe haven. Create your live VT Markets account and start trading now.

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