Canada’s building permits fell by 9% in June, which is worse than the expected 4.3% drop. This decline suggests the construction sector is struggling during this time. The EUR/USD pair rose to two-week highs near 1.1700 due to a weaker US Dollar. President Trump’s comments on cutting rates and speculation about further actions from the Federal Reserve are influencing the currency’s movement.

GBP/USD Hits a Three-Week High

GBP/USD reached a three-week high of 1.3530 as the US Dollar continues to weaken. Traders are focused on recent US CPI data and the UK employment report, which are affecting this trend. Gold has recovered, moving back above $3,350 per troy ounce after hitting lower levels earlier. This rebound is helped by the weaker US Dollar and mixed US treasury yields. Pi Network’s price fell below $0.4000 after hitting a peak of $0.4661, showing a bearish trend. A possible 10% correction could happen, similar to the decline seen in mid-July. The Bank of England cut rates by 25 basis points to 4%. This decision suggests that the easing cycle may soon end, as officials are concerned about ongoing high inflation.

Current Financial Trends Analysis

The 9% drop in Canadian building permits is important context for today’s market situation. According to Statistics Canada, reported on August 7, 2025, housing starts fell by another 2.1% in July, indicating a continued weakness in the construction sector. A bearish outlook on the Canadian dollar might be wise, perhaps using put options on CAD currency ETFs. Reflecting on EUR/USD’s rise to 1.1700 during the US dollar’s decline, today the pair trades much lower at around 1.0950. The Federal Reserve has kept rates steady while the ECB considers cuts to address slowing industrial production in Germany. This policy divergence makes shorting EUR/USD futures an appealing strategy for the next few weeks. The pound’s peak at 1.3530 feels far away now, with the current level at 1.2810. The latest UK CPI data for July 2025 came in hotter than expected at 3.1%, suggesting significant price fluctuations ahead of the next Bank of England meeting. Using a long straddle with options on GBP/USD could help us profit from this anticipated volatility. The recent rebound to $3,350 per ounce set a key resistance level for gold. Now trading at $3,280 as the US 10-year Treasury yield rises to 4.3%, the outlook for gold is becoming less favorable. We see an opportunity to buy put options on major gold ETFs, expecting a lower price movement. The significant drop in Pi Network from $0.4661 is a reminder of the risks in the unproven altcoin market. Given the current cautious sentiment in broader markets, it might be best to avoid these speculative investments. Instead, we should focus on using derivatives to hedge positions in more established assets like Bitcoin and Ethereum. The Bank of England’s decision to lower rates to 4% was perceived as the end of its easing cycle. However, with last month’s stubbornly high inflation figures, the market now anticipates a 45% chance of a rate hike before the year ends. Keeping a close watch on SONIA interest rate futures could allow us to trade based on the increasing possibility that the Bank will need to tighten policy again. Create your live VT Markets account and start trading now.

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