The US S&P Global Composite PMI for September was 53.9, higher than the expected 53.6. The stock market also responded positively, with the Dow Jones Industrial Average increasing by 250 points due to hopes for possible rate cuts. The EUR/USD stabilized around 1.1750 despite worries about a US government shutdown. The GBP/USD rose to nearly 1.3480, reflecting expectations about the shutdown’s impact.

Gold And Crypto Market Overview

Gold prices approached $3,890 per troy ounce after the recent release of US economic data. In the crypto market, Bitcoin was priced at $120,000, while Ethereum and XRP hovered near their weekly highs. Pump.fun is forecasted to grow and could reach previous highs. The token is trading above $0.0070, supported by technical indicators, even with some fluctuations in Bitcoin and Ethereum prices. Investment risks remain significant, and this information is for general purposes only. Readers should conduct their own research before making any investment choices, as the financial details shared may not be fully reliable or accurate. The S&P Global Composite PMI reading of 53.9 indicates that the US economy is performing better than anticipated, continuing the acceleration seen since mid-year. This situation contrasts sharply with the government’s shutdown concerns, creating confusion for traders. The economy’s strength seems at odds with the political uncertainty from Washington.

Federal Reserve And Market Volatility

There’s a noticeable divide within the Federal Reserve, contributing to market volatility and speculation about rate cuts. Some officials are pushing for cuts, while others warn about ongoing inflation. This makes the next Fed meeting’s outcome uncertain. Traders of derivatives should keep an eye on interest rate futures, as the CME FedWatch Tool shows a 65% chance of a rate cut before the year ends. Despite strong economic data, the US Dollar has weakened, dropping below 99.00 on the DXY index for the first time in months. This indicates that market fears over the shutdown and potential Fed cuts outweigh the solid business activity presented by the PMI. Traders might look for options that capitalize on further dollar weakness for major currency pairs like EUR/USD and GBP/USD. The tension between economic data and political news is causing increased implied volatility, with the VIX rising above 18, a significant jump from the calmer levels of the second quarter of 2025. Equity traders might consider buying put options on indices like the S&P 500 as protection against a downturn if the shutdown lingers longer than expected. The market’s rise on rate cut hopes may feel fragile and at risk of reversal. Gold’s climb toward $3,900 an ounce indicates a strong demand for safe havens, a trend seen since late 2024. Although the official headline CPI has cooled to 2.9%, the ongoing rise in precious metals shows that the market is still cautious about long-term inflation risks and geopolitical instability. Traders may use call options to bet on a breakthrough to new all-time highs above $4,000. Bitcoin’s stability near $120,000 suggests the market is taking a breather after the rally following the 2024 halving event. Strong institutional demand remains a significant factor, indicating that this pause could be short-lived. Options traders might view this as a chance to prepare for the next major shift, whether that means a breakout to $130,000 or a retreat to test the $110,000 support level. Create your live VT Markets account and start trading now.

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