**Mortgage Applications Surge** The EUR/USD pair stayed above 1.1700, while the GBP/USD rose past 1.3550 for the first time since late July. This boost in market confidence made it harder for the US Dollar to gain traction midweek. Gold prices remained steady above $3,350, showing only slight gains despite expectations of a more relaxed Federal Reserve policy. In the cryptocurrency world, AI tokens saw growth, with Bittensor, Near Protocol, and Render leading the way. The Bank of England cut interest rates by 25 basis points, bringing them down to 4%. This decision comes amid ongoing inflation concerns, despite signals suggesting that the easing of policies may have ended. For those trading EUR/USD, we compiled a list of top brokers offering competitive spreads, quick execution, and strong platforms. These brokers support traders of all experience levels, guiding them through the ever-changing Forex market. We see the remarkable 10.9% increase in mortgage applications as a strong sign of recovery in the US housing market, a shift not observed since the turbulence of 2024. Coupled with the July consumer price index, which was slightly lower than expected at 2.8%, we believe the Federal Reserve will keep its dovish approach. This hints at ongoing US dollar weakness in the weeks ahead. **Currency and Commodity Outlook** Given the dollar’s weakness, we expect further gains in the EUR/USD and GBP/USD pairs. The Bank of England’s rate cut to 4% was widely anticipated, which is why the sterling actually gained strength. This move, combined with unexpectedly strong UK services data from July, supports our bullish outlook on these currencies through call options or futures. Gold’s position above $3,350 is notable; this represents a significant increase from last year’s $2,300, primarily driven by continuous central bank purchases. However, its current price stagnation, despite a favorable Fed outlook, suggests the rally may be losing momentum. We believe it’s wise to consider hedging long positions using put options or selling some out-of-the-money calls. The impressive gains in AI-focused cryptocurrencies such as Bittensor, Near Protocol, and Render indicate that specific trends are driving the digital asset market. This momentum continues the upward trend seen in late 2024. Due to the high volatility, we’re adopting defined-risk strategies like buying call spreads to manage our initial costs. Create your live VT Markets account and start trading now.

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