Japan’s unemployment rate rose to 2.6% in September, slightly above the expected 2.5%. This increase occurred amid various global economic events impacting markets. In US-China trade news, President Trump and President Xi confirmed a preliminary deal. China agreed to lower Fentanyl tariffs, while the US is set to resume soybean exports.

Currency Market Movements

In the currency markets, the EUR/USD pair traded just above recent lows, ending a downward trend. The GBP/USD continued to fall, hitting six-month lows. The cryptocurrency market faced a downturn, with Bitcoin dropping below $109,000. Ethereum and Ripple also fell, correcting by 8% and 7%, respectively. Gold is trying to recover and aims for its 21-day simple moving average (SMA), even while staying above $4,000. The US Dollar remains strong, backed by reduced expectations for a rate cut in December. Zcash is on a bullish trend, trading well at around $360. Despite market fluctuations, it has risen due to its privacy advantages.

Trading Tips and Insights

Resources like the ‘Best Brokers 2025’ guides offer details for trading currencies and commodities. Traders should choose brokers based on low spreads, leverage, and favorable trading platforms. Japan’s recent unemployment rate of 2.6%, slightly higher than anticipated, hints at potential weakness in the labor market. This data may lead the Bank of Japan to hold off on tightening monetary policy in the coming months. For traders, this reinforces a bearish outlook on the Japanese Yen, as the monetary policy gap with the US likely persists. This trend unfolds against a backdrop of a strong US Dollar, driven by a hawkish Federal Reserve. Recent data shows US core inflation for Q3 2025 around 3.5%, leading the market to rule out a Fed rate cut before mid-2026. This situation makes long positions in the US Dollar, particularly against the Yen, a key focus for futures and options strategies. The widening interest rate gap is central to current trading patterns, dominating markets for over a year. We recall when the Bank of Japan ended its negative interest rate policy in early 2024, yet that shift has been overshadowed by the Fed maintaining higher rates. The current conditions suggest that selling JPY/USD call options or buying puts may effectively leverage further Yen weakness. Additionally, dollar strength impacts commodities like gold and oil. A hawkish Federal Reserve makes holding non-earning assets like gold less appealing, while a strong dollar raises oil costs for foreign buyers. Thus, strategies should focus on benefiting from sideways or downward pressure on key commodities. Other major currencies, including the Australian Dollar and British Pound, are also under pressure. The global shift toward the US Dollar for its safety and yield continues to negatively affect these currencies. This trend supports keeping short positions in pairs like AUD/USD and GBP/USD through the year. Create your live VT Markets account and start trading now.

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