In July, the United States ISM Services PMI hit 50.1, which was lower than the expected 51.5. This shows that the service sector’s growth is slowing down and not matching predictions. The AUD/USD exchange rate moved around 0.6470, affected by the US dollar’s bounce back. The EUR/USD struggled to stay above 1.1600 due to trade talks and speculation about the Federal Reserve, impacting market feelings. Gold prices hovered around $3,380 per troy ounce after nearly reaching $3,400. This stability came as US yields fluctuated and the US dollar lacked a clear trend. Ethereum prices dropped below $3,700, despite higher demand from treasury companies and significant outflows from ETH ETFs. Meanwhile, the euro area’s economy showed strength, backed by international deals and increased spending plans, although there are risks of future rate cuts. Foreign exchange trading involves high risks because of leverage. It’s important to understand these risks before investing, as losses can exceed initial amounts. Consulting an independent financial advisor for advice is recommended. From last month’s data, it’s clear that the US services sector is slowing. The July Non-Farm Payrolls report showed a gain of 175,000 jobs, lower than the expected 190,000, confirming this cooling trend. As a result, we are preparing for a possible shift from the Federal Reserve. We are looking into options that would benefit from lower interest rate expectations in the weeks to come. Last month, the EUR/USD pair faced pressure below 1.1600, and this situation continues. However, new data from early August revealed an unexpected rise in German industrial production, demonstrating the Eurozone’s strength even with a soft US economy. This suggests a possible range for the pair, making strategies like selling strangles on EUR/USD options appealing for collecting premiums while it stabilizes. In July, the AUD/USD fluctuated around 0.6470, with increased uncertainty now. The Reserve Bank of Australia recently decided to keep interest rates steady but adopted a cautious stance, highlighting concerns about slowing US growth impacting global demand. For traders, this means being heavily invested in the Aussie dollar could be risky, and using put options for protection might be wise. Gold remained steady near $3,380, and the recent weak US jobs data helped support this. The price is testing the important $3,400 resistance level again. We think buying call options on gold futures could be a smart way to take advantage of a potential breakout, especially with next week’s inflation data approaching. Ethereum’s decline below $3,700 occurred despite strong signs like increased treasury demand. Recent analysis shows large wallet addresses are starting to accumulate again, although overall trading volume is still low. This gives us an opportunity to sell cash-secured puts with strike prices around $3,500, allowing us to earn income while we wait for market sentiment to align with the fundamentals.

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