India’s bank loans grew to 11.4% by the end of September, up from 10.4%. This indicates a shift in loan growth in the financial sector. In the foreign exchange market, the USD/JPY rose due to changes in the US’s China policy. The EUR/GBP remained stable, affected by UK fiscal challenges and French political events.

Gold Prices

Gold prices decreased from recent highs and are now around $4,200 per troy ounce. This drop is linked to a rise in the US Dollar and higher US Treasury yields. In the cryptocurrency world, Bitcoin’s price fell below $105,000. Ethereum and Ripple also dropped, with Ripple falling under $2.22. The financial markets have a busy week ahead with the release of important data, including US CPI and PMI numbers. These statistics could impact future interest rate decisions made by central banks. Liquidations in the cryptocurrency market exceeded $1 billion in just 24 hours. BNB, Solana, and Cardano saw drops of more than 10%, resulting in significant losses among top cryptocurrencies.

Financial Markets Outlook

A thorough review of the best brokers for varied needs in 2025 is available, noting features like low spreads and high leverage. The pros and cons of different brokers are discussed, particularly those offering MT4 platforms and swap-free accounts. With the US dollar showing broad strength, we should be cautious about holding long positions in other major currencies. The dollar’s rise is driven by a risk-off sentiment, making upcoming US CPI data crucial for assessing market expectations regarding future Fed rate cuts. In this situation, it might be wise to consider put options on pairs like EUR/USD and GBP/USD to protect against potential dollar gains. The outlook for European currencies appears weak, as the Pound approaches 1.34 due to UK fiscal concerns, while the Euro is nearing 1.1650 due to expectations of possible ECB rate cuts. Upcoming UK inflation data and Eurozone PMI figures could expedite this decline. This offers an opportunity to set up short positions via futures contracts in anticipation of more cautious central bank policies in Europe compared to the US. Gold’s drop from nearly $4,400 to about $4,200 can be attributed to the stronger dollar and rising US yields. However, this marks the ninth consecutive week of gains for gold, indicating a strong underlying trend reminiscent of the bull market from 2018 to 2020. This dip may be a good time to buy longer-dated call options, preparing for a rally once the dollar’s strength weakens. In contrast, the cryptocurrency market is facing intense fear. The liquidation of over $1 billion pushed Bitcoin below $105,000. These severe sell-offs, similar to those in the 2021-2022 cycle, often lead to increased volatility that traders can benefit from. We can capitalize on this volatility by purchasing puts to speculate on further decreases or selling cash-secured puts at lower strike prices to earn premiums amid the panic. On the other hand, the Indian economy is showing signs of growth, as bank loan growth accelerated to 11.4%. This continues the strong credit trend we’ve seen over the past few years, which bodes well for the Indian Rupee. We should look for chances to go long on the Rupee against weaker currencies like the Euro or Pound through currency futures. Create your live VT Markets account and start trading now.

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