Japan’s industrial production rose by 1.6% in October, just above the expected increase of 1.5%. The EUR/USD pair has pulled back from a 10-week high, currently around 1.1735, as the US Dollar shows a slight rebound. Anticipated rate cuts from the US Federal Reserve next year could prevent any further declines in this currency pair. Germany will soon release its final Harmonized Index of Consumer Prices data.

UK Economic Data Release

The UK will release its monthly GDP and Industrial Production figures on Thursday at 07:00 GMT, providing insights into the country’s economic performance for October. Gold prices fell during the Asian session, losing some ground from previous gains and ending a three-day rise. Improved equity market conditions have reduced demand for gold, which is usually seen as a safe-haven asset. Bitcoin and Ethereum are nearing important resistance levels, which could lead to a potential rally if they break through. Ripple is stabilizing around a key support zone, indicating a possible rebound if the trend continues. The Federal Reserve has cut rates by 25 basis points, bringing the target range to 3.50–3.75%. Market focus may be on the Fed’s comments as much as the rate change itself.

Solana’s Market Challenges

Solana’s price remains below $130, experiencing resistance from its falling wedge pattern. The market is feeling downward pressure due to the Fed’s cautious stance. We just saw the Federal Reserve set rates at 3.50-3.75%, but the firm tone of the announcement suggests that more cuts may not come soon. This has caused a slight bounce in the US Dollar, which we haven’t seen much of in 2025. For derivative traders, this is a warning against being too bearish on the dollar, as rate cuts might come slower than expected. The EUR/USD pair is retreating from its 10-week high of 1.1735, a reflection of the prolonged easing from the Fed since rates peaked above 5% in 2023. This pullback results from the Fed’s cautious language, creating uncertainty. We could use short-term options to hedge against a potential drop in the pair while maintaining a longer-term bullish outlook. Overall, Japan’s industrial production growth of 1.6% is modest, and we’re awaiting similar data from the UK. This trend of slow global growth has led central banks to cut rates throughout 2025. Any disappointing data from the UK could boost demand for safe-haven assets and add pressure on riskier currencies. Gold is slightly down from its recent high near $4,286 an ounce, a price that once seemed unthinkable when it traded closer to $2,000 just two years ago. This minor decline is due to overall market optimism, though inflation remains a concern. We might see this dip as a chance to buy call options at a lower premium, betting on a continued long-term upward trend. In the crypto market, Bitcoin and Ethereum are testing critical resistance levels that have limited their rallies for months. A breakout could spark a significant rally, making strategies like a long straddle appealing to harness potential volatility. Meanwhile, Ripple remains at a crucial support level, presenting an opportunity for bullish positions if buying interest resurfaces. Solana is lagging behind the market, trading below $130 due to resistance at a key technical level. The Fed’s cautious message has significantly impacted higher-risk assets like SOL, indicating it is still very responsive to central bank policy. We should be careful with new long positions until the broader market shows more confidence. Create your live VT Markets account and start trading now.

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