Mexico’s seasonally adjusted unemployment rate dropped to 2.6% in June, down from 2.7%. This change reflects shifts in the job market. The EUR/USD currency pair decreased to multi-day lows around 1.1630, mainly due to a strong US Dollar. The Euro is struggling after the European Central Bank’s recent decisions and a new EU-US trade agreement.

Volatility in GBP/USD Pair

The GBP/USD pair is experiencing fluctuations, trading just above 1.3400. The strength of the US Dollar affects the pair, while capital exiting the Euro is helping support the Pound Sterling. Gold prices have fallen to about $3,320 per troy ounce. The stronger US Dollar and progress in US-EU trade talks are impacting the demand for Gold. The US faces a deadline for a trade deal or tariffs on August 1. The Federal Reserve is likely to keep interest rates steady, and Nonfarm Payrolls are expected to stay stable. There are concerns regarding the Federal Reserve’s delay in lowering interest rates. Ongoing tariff issues and a strong economy are influencing this decision.

Trading Strategies for EUR/USD

When trading EUR/USD, choose brokers that offer competitive spreads and quick execution. This is key for successfully navigating the changing Forex market. The European Central Bank began its rate-cutting cycle in June 2024, moving ahead of the US Federal Reserve. This difference in policy may keep the Euro under pressure against the Dollar. Strategies that take advantage of a lower EUR/USD, like buying put options or short futures positions, should be considered. UK inflation was 2.3% in April 2024, still above the target. As a result, the Bank of England is expected to hold interest rates steady, which could give the Pound Sterling a strength advantage over the Euro. We view the volatility in GBP/USD as a trading opportunity, possibly using straddles around important economic data releases. Gold prices have declined from recent highs above $2,400 per ounce and are now around $2,330. The strong US Dollar and high interest rates are pressuring the price of this non-yielding metal. However, central banks worldwide added a net of 1,037 tonnes in 2023, the second highest annual total on record, which should help support prices in the long run. The latest US Nonfarm Payrolls report showed an increase of 272,000 jobs in May, much higher than expected. This strong labor market data supports the Federal Reserve’s cautious stance on interest rate cuts. Therefore, we expect continued strength in the Dollar in the coming weeks, impacting all major asset classes. Mexico’s low unemployment rate indicates a strong domestic economy. However, recent political events have caused significant volatility in the peso, which weakened past 18 to the dollar for the first time since 2023. Traders should exercise caution and consider using options to manage risk when speculating on this currency’s direction. Create your live VT Markets account and start trading now.

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