The United States ISM Services New Orders Index fell to 50.3 in July, down from 51.3. This drop signals a slowdown in new orders for the services sector. The EUR/USD found solid support around the 1.1400 level as the USD continued to gain strength. At the same time, gold prices remained strong, staying close to $3,400 per troy ounce.

Ethereum Faces ETF Outflows

In the cryptocurrency market, Ethereum struggled to stay above $3,700 due to significant withdrawals from ETH ETFs. However, corporate purchases of Ethereum persisted, with SharpLink Gaming recently acquiring over 83,000 ETH. The euro area showed resilience during the summer. An EU-US agreement and planned increases in German spending improved the situation. Despite these positive signs, there are concerns about a possible economic cut in late 2025 or early 2026. For those trading currency pairs like EUR/USD in 2025, many brokers are available with competitive spreads and quick execution. Forex trading carries high risks, so careful evaluation of investment goals is advised. The decline in the US ISM Services New Orders index to 50.3 indicates that the American economy is losing steam. Coupled with the July 2025 jobs report, showing the slowest hiring in a year, we think bearish positions on the US dollar may be prudent. We’re considering buying put options on the dollar index, expecting further declines in the coming weeks.

EUR/USD Trading and Fiscal Policy

With the dollar weakening, we see support at the 1.1400 level for EUR/USD. The euro area is benefiting from Germany’s new fiscal spending package, which is expected to support the economy this autumn. We believe buying near-term call options on EUR/USD above this support offers a favorable risk-reward scenario. Still, we must be cautious about a potential rate cut from the European Central Bank in late 2025. This risk makes us hesitant to hold long euro positions for too long. We are exploring longer-dated options, like buying puts on the euro for the first quarter of 2026, to protect against this anticipated policy change. Gold’s strength near $3,400 an ounce is a reasonable response to the US slowdown and ongoing inflation, highlighted by last month’s 4.2% CPI reading. Given the inflationary trends of the early 2020s, investors are clearly looking for safety from currency depreciation. We think buying call options on gold miners is an excellent way to gain leveraged exposure to this trend. In the cryptocurrency market, Ethereum is experiencing volatility. Last week, there were record outflows over $600 million from ETH ETFs, yet corporate treasuries continue to buy, causing uncertainty. To take advantage of this, we recommend setting up option straddles to profit from significant price movements in either direction. Create your live VT Markets account and start trading now.

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