Spain’s Services PMI reached 54.3 in September, exceeding the forecast of 53. This suggests that Spain’s services sector is growing. In European trading, the EUR/USD pair neared 1.1750, while GBP/USD remained above 1.3450 as the US ISM Services PMI was set to be released. The US Dollar weakened due to worries about a slowing job market and a possible government shutdown.

Market Gold Challenges

Gold reached a daily high in European trading but struggled to maintain those gains. Expectations for two additional Fed rate cuts this year are affecting market sentiment and the strength of the US currency. The upcoming US ISM Services PMI, expected to be released without the usual Nonfarm Payrolls data, will provide important insights into industry trends. This information is crucial as we lack typical financial reports. Cryptocurrency tokens, such as Ether.fi and PancakeSwap, have shown an upward trend in the market. These tokens, along with the meme coin SPX6900, are gaining popularity during the current market rally. FXStreet is adapting its design strategy to better navigate market dynamics. This change aims to enhance its editorial focus and strengthen its business position in a shifting trading landscape.

Spain’s Services Boost

Spain’s unexpectedly strong services data for September highlights the overall resilience in Europe. This reinforces the image of a strong continental economy, with the latest Eurozone Composite PMI also outperforming expectations at 52.5. This good news stands in contrast to the challenges faced by the US economy. We are lacking key insights into the US economy due to the government shutdown, which has postponed important reports like the Nonfarm Payrolls. Historically, data voids during shutdowns, such as those in 2013 and 2018, create market uncertainty and increase reliance on secondary data. Consequently, the upcoming ISM Services PMI has now become the most significant release of the week. This disparity in data is driving the EUR/USD pair toward 1.1750. We see this as a chance to explore short-dated call options on the Euro since a weak US ISM report could propel this trend further. The positive momentum in Europe supports the Euro’s strength against a struggling dollar. Anticipations of Federal Reserve rate cuts are becoming more concrete, putting additional pressure on the US Dollar. The CME FedWatch Tool now shows a nearly 75% chance of at least one more rate cut before the year ends, up from 50% a month ago. This shift is a direct result of concerns about the economy’s performance due to the shutdown. In this context of a weaker dollar and rising economic uncertainty, Gold becomes increasingly attractive. The precious metal is testing the $2,450 per ounce mark. Buying call options on gold futures or related ETFs could be a smart move to gain potential benefits while reducing risk. Create your live VT Markets account and start trading now.

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