Switzerland’s industrial production rose by 2.4% year-on-year in the third quarter, bouncing back from a previous decline of -0.1%. This improvement signals a recovery in the sector. EUR/USD is under pressure due to cautious market sentiment, with investors focusing on upcoming US economic data. Meanwhile, GBP/USD struggles with increased demand for the US Dollar, amid concerns about the UK’s finances. Gold continues to trade below $4,100, suggesting limited chances for growth.

Canada’s Economic Outlook

In Canada, inflation is expected to decrease slightly in October. However, the core CPI remains above the Bank of Canada’s 2% target. The Canadian Dollar has shown some recovery this month despite these economic factors. In tech news, Pi Network (PI) has risen in value following new updates from the Pi App Studio. The token is now trading above $0.2200, reflecting a 3.52% increase since Sunday. Market sentiment has stabilized, with US stock futures showing minor gains at the week’s start. The unexpected 2.4% rise in Swiss industrial production highlights the strength of the manufacturing sector. This contrasts with some recent weaker data from the Eurozone, suggesting that the Swiss franc may be growing stronger. Traders might consider options on the EUR/CHF pair, betting that the franc will outperform the euro soon.

The Influence of US Dollar Strength

The US Dollar continues to dominate, with markets now expecting a lower chance of a rate cut from the Fed in December. Core PCE inflation in the US is holding steady near 2.9% through most of 2025, reinforcing the idea that interest rates will stay high for a while. This environment could make selling out-of-the-money call options on pairs like EUR/USD and GBP/USD a smart move, as the dollar’s strength may limit significant price increases. The British Pound is facing its own challenges, currently below 1.3200 due to renewed concerns about the UK’s financial situation. With UK debt at 104% of GDP, investors are feeling uneasy about the government’s budget strategy, reminiscent of market volatility in 2022. This uncertainty might lead to higher volatility, making long straddles on GBP/USD an interesting strategy to trade sharp price movements without a specific direction. Gold has seen significant gains but is now stalling below the $4,100 level. A strong dollar coupled with high real interest rates, a situation we haven’t experienced as acutely since 2023, is presenting challenges for this non-yielding metal. Given the limited upside, traders may want to explore buying put options or creating bear put spreads to guard against or profit from a potential drop toward the $4,000 level. Create your live VT Markets account and start trading now.

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