United States wholesale inventories rose by 0.2% in June, unlike the predicted drop of 0.1%. This reflects a change in the stock levels that wholesalers are holding. The EUR/USD pair bounced back from earlier lows, moving towards 1.1550 after reaching 1.1520. The US Dollar gained strength following the signing of the US-EU trade agreement and new US economic data. GBP/USD found support as it moved away from the 1.3300 area. Its movements are influenced by the US-EU trade agreement and the upcoming FOMC event. Gold is trading at about $3,330 per troy ounce, remaining stable as the US Dollar stays strong. Ethereum hit a new year-to-date high of $3,941 before dropping back to $3,800, with high institutional demand for Ethereum shown by recent additions to ETH ETFs. The Federal Reserve is under scrutiny for its decision to delay rate cuts, amid uncertainty over tariffs and economic conditions, raising questions about the timing due to challenges in the labor market. Unexpectedly, the US wholesale inventories dropped by 0.3% in June, indicating that consumer demand is depleting stock faster than expected. This could signal an upside for consumer-focused stocks. Traders might consider options on retail sector ETFs to capitalize on this strength. The EUR/USD is testing the 1.0700 mark after recent comments from the European Central Bank suggested a pause in rate hikes. The GBP/USD pair remains volatile around 1.2250, reacting to UK inflation, which came in higher than expected at 3.1%. Selling euro-based volatility could be a good strategy if a pause is anticipated, while sterling may experience ongoing fluctuations. Gold is holding firm at around $2,450 an ounce, serving as a hedge against recent inflation figures. Ethereum has decreased toward $4,500 after exchange-traded funds recorded their first weekly net outflow of $150 million. This suggests that using options might be wise to protect long crypto positions or speculate on possible further declines. The Federal Reserve’s decisions on interest rates are causing the most uncertainty for traders. The latest unemployment figures rose to 4.1%, but ongoing inflation data puts Chair Powell in a tough spot ahead of the next meeting. We see opportunities in interest rate futures, positioning for the market’s reaction to the Fed possibly keeping rates higher for longer than previously expected.

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