Japan’s capacity utilization rose to 3.3% in October, up from 2.5%. This signals growth in industrial activity. In the market, the US Dollar dropped, marking three weeks of decline. Traders are closely watching the Federal Reserve’s next moves.

UK GDP Decline

The UK’s GDP unexpectedly fell by 0.1% in October, while a 0.1% increase was expected. Meanwhile, manufacturing production increased by 0.5%, which was lower than the 1% forecast. Gold prices are near their highest level since October 21. The positive market sentiment has reduced gold’s appeal as a safe-haven asset. Bitcoin and Ethereum are approaching resistance levels, hinting at the possibility of a new rally. Ripple is holding steady at a key support point, which could lead to a rebound. The S&P 500 has increased while the US 2-year yield remains around 3.50%. This follows a less aggressive rate cut by the Federal Reserve than some anticipated.

Solana Price Drop

Solana’s price has fallen below $130. The Federal Reserve’s hawkish stance on rate cuts has added to this downward trend. Investors should do thorough research because markets can be unpredictable, and all investments come with risks. Japan’s recent rise in capacity utilization in October signals good news for its industrial sector. This positive economic data, combined with a weakening US dollar, suggests potential growth for the Japanese Yen. Traders might consider derivatives that could profit from a lower USD/JPY exchange rate in the weeks ahead. The US Dollar is on a downward trend, evidenced by the Dollar Index (DXY) dropping nearly 4% since its peak in October 2025. The market is now anticipating aggressive Federal Reserve rate cuts for 2026, which is putting more pressure on the dollar. This scenario could make currencies like the Euro and Australian Dollar appealing against the US Dollar. As the S&P 500 rises, market fears have eased, reflected in the Volatility Index (VIX), which has dropped to its lowest level since before the 2024 election cycle, around 13. Traders might explore strategies involving selling volatility, like writing covered calls on existing stock positions or selling put spreads on major indices. Gold prices remain strong near multi-month highs, benefiting from expectations of lower interest rates and a weaker dollar. Looking back to late 2023, a similar situation led to a significant breakout to all-time highs. This trend suggests that buying call options on gold or gold-mining ETFs could yield considerable profits if it continues. Create your live VT Markets account and start trading now.

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