Ireland’s Harmonised Index of Consumer Prices (HICP) dropped by 0.2% in September, reversing a previous rise of 0.4%. This change reflects the cost of goods and services that households use in the country. In the foreign exchange markets, the Euro lost some value against the Swiss Franc, after the European Central Bank (ECB) held its monetary policy steady. The GBP/JPY pair fell after a four-day rise, as markets reassessed the Bank of Japan’s policy.

Gold Prices and Cryptocurrency Trends

Gold prices stayed near all-time highs due to expected Federal Reserve rate cuts and ongoing worries over a long US government shutdown. The Euro weakened as German trade data disappointed, while the Canadian Dollar held steady ahead of a speech from the Bank of Canada. In the cryptocurrency market, Bitcoin saw a dip towards $121,000, while Ethereum and Ripple also fell. US tariffs remain a critical tool for the current administration. Monero, on the other hand, gained value, trading around $333, driven by positive market news and investor interest. The drop in Irish inflation to -0.2% in September is a concerning sign for the Eurozone economy. This marks the first negative monthly inflation from a member state in over a year, indicating that the European Central Bank’s steady policy may be challenged by declining demand. This could signal a good time to consider put options on the EUR/USD, as it struggles to stay above 1.1600.

Impact of the US Government Shutdown

The ongoing US government shutdown, now in its fourth week, is prompting many to seek safer investments. This “risk-off” environment is boosting the US Dollar and pushing Gold prices above $4,000. When shutdowns last a long time, like the 35-day one from 2018-2019, they create ongoing uncertainty, which often benefits safe-haven assets. With the Federal Reserve’s future plans unclear, we expect market volatility to keep rising. The lack of direction from Fed officials is causing options premiums to increase, signaling investor concern. This situation is favorable for strategies that benefit from big price swings, such as long straddles on major equity indices. Bitcoin’s drop to near $121,000 shows that traders are pulling back from riskier investments. After a significant rise in the second quarter of 2025, a correction was expected, and the current uncertain environment is fueling this dip. This move away from speculative assets further supports the stronger outlook for Gold and the US Dollar in the short term. Create your live VT Markets account and start trading now.

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