In May, existing home sales in the United States rose by 0.8%, which was better than the expected decline of -1.3%. This growth may suggest that the market is changing. The Australian dollar faced challenges, reaching a key level around 0.6550, amid ongoing geopolitical worries. At the same time, the EUR/USD pair aimed for 1.1630, following possible hints from the Fed about future interest rate cuts.

Gold And Ripple Market Analysis

Gold traded close to $3,400 due to tensions from Iran’s military actions. Ripple’s (XRP) price remained steady at around $2.00, despite challenges linked to US-Iran unrest. The GBP/USD exchange rate rose to 1.3480 after dropping to around 1.3370. This increase was driven by selling pressure on the US Dollar. Traders are now focusing on upcoming UK Manufacturing and Services PMIs. For trading the EUR/USD, various brokers in 2025 offer different benefits, such as competitive spreads and advanced platforms. This is helpful for both new and experienced Forex traders. May’s economic data shows a shift in a few important areas. For example, the 0.8% rise in existing home sales in the US came as a surprise, especially since a -1.3% decline was expected. This is significant. It coincides with lower borrowing costs in some regions and may indicate improved consumer confidence or resilience amid tightening conditions. The household sector might be more robust than previously thought. For those trading US dollar positions, especially in longer contracts, this suggests that any dovish stance from the Fed will face at least one area of strength. In terms of currency, the Australian dollar struggled to break through the 0.6550 barrier, indicating that it’s facing bearish sentiment unless new stimulus arises or there’s a clear shift in rate expectations. Traders can consider short-dated puts for controlled downside risk when positioning themselves against the AUD. In Europe, the EUR/USD continues gaining momentum towards 1.1630. This is largely due to an emerging belief that the Fed may ease its policies before the ECB takes action. Although Powell’s office has not made a firm commitment, softening US economic data and tepid inflation have pushed markets to anticipate possible cuts later this year. Next, we need to see if eurozone activity data, particularly from German manufacturing and French services, supports the euro’s strength. If it does, we expect upper levels to remain supported—current spreads and swaps favor staged entries rather than heavy upfront positions. In the metals market, gold’s price hovering just under $3,400 highlights where investors are seeking safety. Concerns about Iran’s military stance continue to be a risk factor, but the gold rally shows signs of exhaustion, indicated by more collars in options activity and fewer outright directional calls. Traders focusing on volatility might consider strangles for asymmetric payoffs, especially as prices hold around $3,300. Ripple has remained close to the $2 mark, avoiding deeper losses despite geopolitical tensions. XRP has started to act more neutrally compared to other cryptocurrencies during global risk events. With ongoing legal uncertainties and reduced volatility, traders may favor range-bound strategies unless significant news shifts the market direction.

GBP And Euro Market Sentiments

The GBP/USD pair demonstrated resilience, climbing back to 1.3480 after dipping near 1.3370, as sellers of the US Dollar dominated. However, the focus should be on how the market adjusts to upcoming UK data, particularly Manufacturing and Services PMIs. Weak data in pricing pressures or new orders could reinforce expectations that the Bank of England will maintain its current stance. Those managing forward contracts or weekly FX options might want to keep room for flexibility, aligning tight strikes with lighter leverage to avoid losses during volatile sideways movements. With liquidity for EUR/USD expected to tighten slightly in August, it’s crucial for trading venues to deliver consistent spread pricing and minimal slippage when activity is slower. Brokers that align their pricing with top-tier liquidity providers will be better positioned, especially during macroeconomic announcements or consolidation breaks. Following our methods, we are closely watching developments in macro policy guidance and bond market movements. Understanding duration risk, particularly with US treasuries, will be key. Any lower-than-expected core CPI and labor data may boost risk-asset rotation trades. These elements should be factored into planning, especially for leveraged positions. Create your live VT Markets account and start trading now.

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