South Korea’s S&P Global Manufacturing PMI rose to 50.7 in September from 48.3. This indicates that the manufacturing sector is starting to grow again after a previous decline. The AUD/USD dropped below 0.6600 during the Asian trading session. This decline is due to concerns about a possible US government shutdown. The US Dollar’s cautious position hasn’t supported this currency pair.

Gold’s Rally Amid US Government Concerns

Gold continues to rise, staying above $3,870, due to worries about a potential US government shutdown. Meanwhile, although USD/JPY saw some buyers, it struggles to gain momentum because of expectations around Bank of Japan and Federal Reserve interest rates, as well as geopolitical tensions. Solana might be less impacted by supply issues than Litecoin if the SEC approves altcoin ETFs. This difference comes from the various influences and possible market effects on each cryptocurrency. Ukraine is facing more challenges with its debt due to the ongoing conflict with Russia. Discussions on new IMF programs are speeding up. Possible solutions include tapping into frozen Russian reserves and restructuring debt. For EUR/USD traders in 2025, it’s crucial to choose brokers with competitive spreads and strong platforms. The fast-moving Forex market needs reliable partners for both beginners and experienced traders.

Impact of US Government Shutdown on Markets

South Korea’s manufacturing PMI rising above 50 is an important signal this morning, October 1, 2025. After a long downturn in semiconductors throughout 2024, this positive reading could indicate a bounce back in the global tech cycle. It might be time to think about buying call options on Korean tech ETFs or major exporters. However, this encouraging data is being overshadowed by growing risk aversion linked to the United States. The ongoing US government shutdown, now in its third week, is driving a flight to safety in the markets. Data from the University of Michigan confirms this: US consumer sentiment fell by a full point in September, mainly due to the political standoff in Washington. This uncertainty makes shorting risk-sensitive currencies like the Australian dollar a tempting hedge. The AUD/USD pair has struggled to maintain its gains. With the Reserve Bank of Australia on hold, any negative global news will likely send it lower. We saw a similar pattern during the US-China trade tensions in 2024, where the Aussie became a top choice for shorting amidst market fears. Gold’s rise above $3,870 shows where investor capital is directed. It has increased over 60% since its 2024 highs. This trend reflects both the US government shutdown and expectations that the Federal Reserve may cut rates sooner than expected. For derivatives traders, taking long positions in gold futures or call options on major gold mining ETFs remains a key strategy. The difference in policies between the Bank of Japan and the Federal Reserve is also creating clear opportunities in the USD/JPY market. With Japanese inflation staying above the BoJ’s 2% target for over a year, pressure for a rate hike is increasing, while the Fed is hinting at cuts. This situation suggests selling any strength in the USD/JPY pair, possibly by using put options or shorting futures contracts. For those willing to take risks, the potential approval of altcoin ETFs by the SEC offers a unique trading opportunity. Going long on Solana while shorting Litecoin could be beneficial. Solana has a better supply situation compared to Litecoin, which may face selling pressure from existing trust funds. This strategy carries high risk and relies entirely on a favorable regulatory outcome in the coming weeks. Create your live VT Markets account and start trading now.

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