The Jibun Bank Manufacturing Purchasing Managers’ Index (PMI) for Japan recorded a value of 48.5 in September. This number was slightly better than the expected 48.4, but it remains below the key 50 mark, which indicates a shift from growth to contraction. The EUR/USD currency pair is stable, hovering around 1.1730. The Eurozone’s Harmonized Index of Consumer Prices is expected to show a 2.2% increase year-on-year for September. Meanwhile, Gold prices are climbing, staying above $3,870 as the US government faces a shutdown due to stalled budget talks.

Forex and Cryptocurrency Insights

The GBP/USD pair rose above 1.3450, supported by a higher chance of interest rate cuts from the Federal Reserve, following disappointing US job data. The CME FedWatch Tool shows a 97% likelihood of a rate cut in October. Bitcoin is trading above $114,000, while Ethereum and Ripple are nearing their resistance levels, suggesting they may rally soon. Ukraine is struggling with debt sustainability due to ongoing conflict, leading to discussions about deeper debt restructuring and utilizing frozen Russian assets. Effective brokers for EUR/USD trading are now being recommended, highlighting the importance of competitive spreads, quick execution, and strong platforms to thrive in the fast-paced Forex market. The Japan Manufacturing PMI for September stands at 48.5. Although this is a slight improvement, it indicates the 14th straight month of contraction for the sector. This might suggest that while conditions remain tough, the decline could be slowing. Traders may seek to sell volatility on the Nikkei index, betting that the worst news is already reflected in prices. Internationally, the main focus is on weakness in the United States, as a government shutdown is in progress. This uncertainty, paired with disappointing August 2025 job data showing only 95,000 jobs added, has led markets to price in a 97% chance of a Federal Reserve rate cut in October. We anticipate that this situation will continue to put pressure on the US dollar in the upcoming weeks.

Market Dynamics and Opportunities

This dollar weakness is creating opportunities in the Forex market, pushing GBP/USD above 1.3450. Traders should explore strategies that benefit from further gains in the pound. Meanwhile, EUR/USD is stable near 1.1750 ahead of anticipated Eurozone inflation data, expected to rise to 2.2%, which may put pressure on the European Central Bank. There is a clear flight to safety, as gold trades at record highs above $3,870, a typical response to US political uncertainty. A similar trend was observed during the extended government shutdown from late 2018 to early 2019, when gold prices rallied over 4% in just one month. Call options on gold futures might be a smart way to capitalize on further gains if the shutdown continues. Bitcoin is also experiencing a positive trend, trading above $114,000 as some investors view it as a hedge against government dysfunction and potential currency devaluation. It seems to be gaining momentum for another rally. We are watching for a significant move above its next resistance level, which could attract more speculative investment. Create your live VT Markets account and start trading now.

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