In September, Japan’s jobs-to-applicants ratio met expectations, standing at 1.2. This ratio reflects the number of job openings for each job seeker in Japan, giving insight into the labor market’s condition. In the currency markets, EUR/USD held steady around the 1.1550-1.1540 support level, with some gains near 1.1575. Meanwhile, GBP/USD dropped to six-month lows, nearing 1.3100, as the British Pound fell over 2% against the US Dollar in October.

Gold And Cryptocurrency Market

Gold sought recovery, stabilizing above $4,000 after recent losses but encountering resistance at the 21-day simple moving average (SMA). In the crypto world, Bitcoin celebrated the 17th anniversary of its whitepaper, marking its rise to a $2 trillion market asset. US-China trade relations remained stable after a framework deal, influencing tariffs and exports. In the crypto market, Zcash showed bullish momentum, trading around $360 despite facing broader challenges. FXStreet offers financial insights and emphasizes the need for thorough research before investing. It highlights the importance of understanding market risks and does not take responsibility for any investment decisions made based on its content. Diminishing hopes for more Federal Reserve rate cuts have strengthened the US Dollar overall. Recent data shows persistent US inflation, with the latest Consumer Price Index (CPI) reading for September at a steady 3.8%. This suggests that maintaining long dollar positions, especially against weaker currencies, is a key strategy.

Impact On Commodity Linked Currencies

China’s economic slowdown is negatively impacting commodity-linked currencies like the Australian and New Zealand Dollars. The official NBS Manufacturing PMI for October reported at 49.8, indicating a second month of contraction and calling for caution. Traders might consider put options on the AUD/USD or look for short-sell opportunities during fleeting rallies. The Pound Sterling is particularly weak, recently hitting a six-month low against the US Dollar as it fell below the 1.3100 level. The UK is grappling with stagflation, with inflation at 4.5% and GDP growth at only 0.1%. This scenario favors strategies that capitalize on further GBP weakness or increased volatility. Gold remains above $4,000 but faces challenges with a strong US Dollar and falling expectations for rate cuts. The Fed’s aggressive rate hikes in 2022 and 2023 have made them cautious about easing policy soon, and the high gold price is likely supported by ongoing geopolitical risks and worries about the US national debt, which has surpassed $40 trillion. Meanwhile, Japan’s jobs-to-applicants ratio of 1.2 shows a stable, if not booming, labor market. This stability in Japan, compared to volatility elsewhere, may position the JPY as an appealing funding currency for carry trades. Derivative traders might find it beneficial to sell volatility in yen pairs that are not heavily affected by current market disruptions. Create your live VT Markets account and start trading now.

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