India’s HSBC Manufacturing PMI for September stood at 57.7, missing the expected 58.5. This number highlights how the manufacturing sector performed during that time. In other market news, EUR/USD rose above 1.1750 due to a weakening US Dollar from the government shutdown. Gold remains close to an all-time high, with a possible Fed rate cut driving its price up amid these US issues.

Currency And Cryptocurrency Movements

The GBP/USD has risen above 1.3450, influenced by the US government’s halt in operations. Bitcoin is trading over $114,000, while Ethereum and Ripple are approaching resistance levels, indicating potential future increases. Ukraine is facing growing financial difficulties due to ongoing conflicts and talks about a new IMF program. This situation emphasizes the need to address frozen Russian reserves and restructuring debt. The latest manufacturing data for September 2025 reveals a PMI of 57.7, below the 58.5 expectation. Although any figure above 50 indicates growth, this dip marks a possible slowdown in the sector’s strong momentum. It should not be seen as a contraction, but rather a noticeable deceleration in growth.

Equity Market Implications

Looking back, 2024 was a strong year for expansion, with the manufacturing PMI consistently above 58 and peaking at 59.1 in March. This solid performance raised market expectations, making this September 2025’s miss significant as it breaks that upward trend. For those trading equity derivatives, a cautious approach to Indian indices like the NIFTY 50 is advisable. The index had a significant rise, gaining over 18% in 2024, and is sensitive to signs of slowing growth. Consider buying put options to protect long portfolios or speculate on a short-term market correction. This data will also be crucial for the Reserve Bank of India’s upcoming policy meeting. The RBI has kept the repo rate at 6.5% since early 2023, wary of inflation, which averaged around 5.4% last year. A slowdown in economic activity may lead the central bank to adopt a more dovish stance or signal potential rate cuts. In currency markets, this could put downward pressure on the Indian Rupee. Lower interest rates can make the INR less appealing to foreign investors. Therefore, we should consider long positions in USD/INR futures or buying call options for a possible Rupee depreciation in the coming weeks. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now