Mexico’s unemployment rate stayed steady at 2.7% in June. This number hasn’t changed from last month, showing that the job market is stable. In the foreign exchange market, the Australian Dollar is under pressure, with the AUD/USD close to 0.6500. The EUR/USD has also dropped, falling below 1.1600. Gold prices are on a downward trend but are still above $3,300 per troy ounce. Ethereum has shown slight ups and downs, trading around $3,803 after hitting an intraday high of $3,941. The Federal Reserve is being watched closely for deciding to hold off on rate cuts during a time when the economic outlook is uncertain. Forex market participants should be aware of their risk tolerance due to potential financial losses. We think the Federal Reserve’s choice to delay rate cuts is a key factor for the coming weeks, which supports a strong U.S. dollar. Current market data suggests that traders do not expect a rate cut until at least September. Because of this, strategies that benefit from a strong dollar, such as buying call options on the U.S. Dollar Index (DXY), may be worth considering. The pressure on the Australian dollar is connected to the Federal Reserve’s policy and slowing economic data from China, its biggest trading partner. We believe buying put options on the AUD/USD as it approaches the 0.6500 support level could be wise. The euro is also facing challenges, weakened by the European Central Bank’s rate cuts in early June, which creates a policy difference that traders can take advantage of. Regarding gold, it’s important to note that its price is holding above the critical $2,300 per troy ounce mark, contrary to earlier figures. The downward trend is expected due to high interest rates that increase the cost of holding non-yielding assets. We think selling out-of-the-money call options on gold could generate income, as significant price increases seem unlikely in the short term. The fluctuations in Ethereum show a market impacted by broad economic pressures and specific factors, like the potential approval of spot Ether ETFs. High implied volatility makes option strategies like straddles appealing, as they allow traders to profit from significant price movements in either direction without needing to predict the outcome. Historically, such regulatory developments have led to unpredictable price changes in cryptocurrencies. The stability in Mexico’s job market is a positive sign locally, but it is overshadowed by the broader global economic situation. Considering risk tolerance, we recommend using derivatives to hedge against existing exposures. For instance, traders with substantial international stock holdings might consider buying VIX futures to protect themselves from sudden increases in market volatility driven by unexpected U.S. policy changes.

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