The United Kingdom had a trade deficit of £8.294 billion in August with countries outside the European Union. This is an improvement from the previous deficit of £10.158 billion. This information is part of a larger economic report that also noted a 0.1% rise in UK GDP and better-than-expected Manufacturing Production for the month. The GBP/USD exchange rate stayed above 1.3400 after the economic report, as investors reacted to a recovery in the US Dollar. In the financial markets, gold continued to perform well, influenced by ongoing US-China trade tensions and geopolitical risks.

Dogecoin Price Stabilization

Dogecoin’s price stabilized around $0.19, after a 5% drop earlier in the week. Support came from significant whale accumulation, which offers a positive outlook for the cryptocurrency. Meanwhile, the S&P 500 had an “inside day” after some turbulent trading sessions, indicating uncertainty among traders. Financial experts assessed forex brokers, pointing out different services available for traders in 2025. It’s crucial to conduct personal research when investing, as the economic indicators and market trends mentioned come with risks and potential losses. The smaller-than-expected UK trade deficit for August 2025 suggests the economy is performing better than anticipated. This is supported by other positive data, like recent manufacturing figures. With UK inflation at 3.1% last month, it may encourage the Bank of England to keep rates steady, which is beneficial for the pound.

Buying Call Options

We believe purchasing call options on GBP/USD can be a smart move, aiming for strikes above the 1.3400 level noted in recent analysis. The recent strength leads to dips being bought, so using options can help manage downside risk while taking advantage of potential gains. Consider short-dated contracts to leverage the current momentum. The EUR/USD situation revolves around the differences in central bank policies, which are becoming clearer. The Federal Reserve’s September 2025 meeting indicated a continued cautious approach, while some ECB members are resisting further rate cuts. This policy divergence could help support the euro against the dollar. Gold remains a key focus due to the search for safety and a weaker outlook for the US dollar. The recent drop in US 10-year Treasury yields to below 3.5% makes holding bonds less attractive compared to gold. This situation resembles what we observed in 2020, right before gold surged. We must also recognize the broader market uncertainty, seen in the recent volatility of the stock market due to trade news. The VIX, which measures market volatility, has been high, staying above 20, indicating that traders are still uneasy and anticipating sudden movements. This situation suggests that buying protection, like put options on major indices, could be a wise hedge for any long positions. Create your live VT Markets account and start trading now.

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