Japan’s Jibun Bank Services PMI rose to 53.5 in July, up from 51.7 the previous month. This increase indicates growth in Japan’s services sector. The EUR/USD pair climbed to about 1.1775 as the European Central Bank’s rate decision gains focus. Meanwhile, GBP/USD stays around 1.3580, keeping recent gains as the US Dollar weakens.

Gold And Crypto Market Performance

Gold prices are under pressure, trading below $3,400, though optimism from new trade agreements may limit further declines. The crypto market saw a significant sell-off, leading to over $737 million in liquidations, mostly affecting long positions. In the US, Trump’s second presidency has brought aggressive policies under the “America First” agenda. This period is marked by changes in rhetoric affecting trade, taxes, AI, and national defense. For those trading EUR/USD, we have a list of top brokers offering competitive conditions. This list helps both new and experienced traders find trustworthy partners in the Forex market.

Potential Trading Strategies

With Japan’s services sector showing strength, as the Jibun Bank Services PMI increased to 53.8 in May 2024, we see a chance for a stronger yen. Derivative traders might look into call options on the JPY or bullish positions on Nikkei-linked futures to take advantage of the growing domestic economy. We expect the US Dollar to remain weak, benefiting the EUR/USD and GBP/USD. As the European Central Bank started cutting rates in June while the Federal Reserve holds steady, traders should prepare for volatility around upcoming policy changes. Using options to respond to currency fluctuations can help reduce risks from unexpected central bank comments. Gold remains under pressure, currently at around $2,330 per ounce, but we consider it a vital hedge. The “America First” agenda often leads to trade uncertainty, which tends to increase demand for safe-haven assets. We recommend traders look into long-dated call options on gold ETFs as an affordable way to protect their portfolios from potential geopolitical issues. The recent liquidation in the cryptocurrency market shows its volatility and the risks of high-leverage long positions. With market sentiment shaky, we suggest using derivatives for protection instead of speculation. Buying put options on Bitcoin or Ethereum can be a crucial safety measure for those holding these assets. Any policy changes under a second Trump administration could create differences in market sectors. We expect that defense and domestic-focused industries might do better, while companies that depend on international trade may face challenges. Traders should consider options on sector-specific ETFs to prepare for these possible policy-driven effects. Create your live VT Markets account and start trading now.

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