Japan’s CFTC has reported a drop in non-commercial net positions for the Japanese Yen to ¥82K, down from ¥89.2K. This gives us a view into the trading trends affecting the Yen. The EUR/USD pair has slightly recovered, now above 1.1650, thanks to a stronger US Dollar. Traders are focusing on upcoming US inflation data and recent trade developments.

British Pound Gains Strength

GBP/USD is climbing near 1.3450 after bouncing back from daily lows. The British Pound benefits from recent policy changes by the Bank of England. Gold is trading close to $3,400 per troy ounce, with slight ups and downs following earlier peaks. Developments around US tax rules for gold bars are impacting its value. In the cryptocurrency market, Bitcoin has a positive trend, reaching nearly $118,000 before settling at about $116,525. Both institutional and retail interest are boosting market sentiment. The Bank of England recently cut rates by 25 basis points to 4%, signaling that we may be nearing the end of the easing cycle. However, worries about inflation rates remaining above target levels persist.

Top Brokers for EUR/USD Trading

Choosing the best brokers for trading EUR/USD in 2025 is important for Forex traders. We’ve identified brokers known for their competitive rates, advanced platforms, and a range of options. Given the recent decline in long positions for the Japanese Yen, there might be opportunities to benefit from further Yen weakness soon. Recall the significant Yen drop from 2022-2024 when the Bank of Japan maintained its easy policy. The minutes from the August 1st, 2025 meeting suggest that not much has changed since then. This supports considering long positions in pairs like USD/JPY. For EUR/USD, attention is on the upcoming US Consumer Price Index (CPI) report set for August 14, 2025. Analysts expect a 0.3% month-over-month rise, and any surprises could lead to volatility, particularly after the Fed’s cautious stance in early 2025. This makes options strategies appealing for those wanting to profit from potential large price changes, regardless of direction. The recent rate cut from the Bank of England seems to be a “one and done” action for the time being, which may explain the pound’s strength. With the UK’s inflation rate for July 2025 at 3.1%, well above the 2% target, further cuts appear unlikely. We believe the market has factored in the end of this easing cycle, making dips in GBP/USD good buying opportunities. Gold’s value around $3,400 is historically high, driven by increased central bank purchases noted in late 2024. A key issue now is the expected announcement regarding a proposed 5% US excise tax on physical gold transactions, which should happen before the end of August. Due to this uncertainty, using options to protect long positions from sudden price drops seems wise. The bullish trend in the crypto market is supported by strong institutional interest. Data from August 8, 2025, shows a net inflow of $2.1 billion into Bitcoin ETFs last week. The underlying momentum is strong, so we maintain a bullish view on crypto derivatives. However, we will keep an eye out for any regulatory changes that could affect this sentiment. Create your live VT Markets account and start trading now.

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