The initial jobless claims in the United States were reported at 224,000, which is lower than the expected 228,000 for the week ending August 8. This indicates a slight improvement in the labor market during that time. In the forex market, the EUR/USD is trading below 1.1650 as the US Dollar shows strength, supported by strong wholesale inflation data and positive labor market figures. Similarly, GBP/USD has fallen to around 1.3520, driven by the US Dollar’s rise despite positive economic signs from the UK.

Gold And Cryptocurrency Trends

Gold is facing ongoing selling pressure, trading near $3,330 per troy ounce, following the strength of the US Dollar and increasing US yields. At the same time, Bitcoin has pulled back after hitting a record high, influenced by Ethereum’s upward movement, which is close to its previous peak of over $4,800. In geopolitical news, rising customs revenues and other factors could lead to increased US trade tensions, which may reduce global output by 0.7 percentage points. Additionally, a list of top brokers for trading EUR/USD in 2025 has been created, focusing on features like competitive spreads and quick execution. It is crucial to understand the risks of trading foreign exchange on margin, as these can involve significant investment and potential loss of capital. Always consider your investment goals and seek independent advice if needed.

Strength Of The US Dollar

With the recent strong US jobs data, we see a clear sign of economic resilience. The lower-than-expected initial jobless claims of 224,000 underscore a tight labor market. Coupled with the July 2025 Consumer Price Index (CPI) showing inflation at 3.1%, this strengthens the argument for the Federal Reserve to maintain its aggressive approach. For forex traders, this suggests ongoing strength for the US Dollar. The gap in monetary policy is becoming clear, especially as the European Central Bank considers a pause after Eurozone inflation cooled to 2.5%. Traders might consider strategies that benefit from the dollar, such as selling EUR/USD call options or buying USD/JPY futures, anticipating continued momentum for the dollar ahead of the September Fed meeting. The pressure on gold largely stems from the dollar’s rise and rising US Treasury yields, with the 10-year note recently surpassing 4.75%. While gold’s current price near $3,330 is influenced by years of inflation and geopolitical concerns since early 2020, its short-term outlook appears bearish. Traders may want to consider buying puts on gold futures to hedge against or profit from a further decline. In the cryptocurrency market, we observe mixed trends. Bitcoin’s recent decline from its all-time high shows caution as rising interest rates make holding riskier assets more costly. In contrast, Ethereum demonstrates independent strength, nearing its 2021 peak, driven by the successful completion of its network upgrade in early August 2025, which reduced transaction fees. Finally, we should stay alert to the growing US trade tensions, which could negatively impact global growth. This poses a significant risk that might lead to sudden safe-haven buying, disrupting current trends. Thus, using options to hedge our main positions, such as buying puts on major stock indices, is a wise strategy to safeguard capital from unexpected market movements 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