South Africa’s Business Confidence Index increased to 121.1 in August, up from 116.7 the previous month. This indicates that businesses feel more positive during this time. This boost in confidence could impact South Africa’s economy. At the same time, global markets are noticing other changes, like gold stabilizing after a significant rise and supply issues affecting silver prices.

Currency Markets Activity

In the currency markets, the EUR/GBP is going up as weaknesses in the UK labor market and political risks in France affect trading. The USD/CNH is expected to trade between 7.1200 and 7.1550. European asset manager Amundi plans to launch a Bitcoin exchange-traded product (ETP) in 2026. This will be their first entry into crypto funds, showing that established financial institutions are increasingly interested in digital currencies. Additionally, the top forex and CFD brokers for 2025 have been identified. These brokers cater to different trader needs and serve various regions, including Europe, Mena, Latam, and Indonesia, offering features like low spreads and high leverage. FXStreet has stated that the market information shared is for informational purposes and comes with risks. They encourage thorough research before making financial decisions.

Current Market Trends

With a current risk-off attitude in the market, many investors are seeking safety, resulting in a stronger US Dollar. Tensions with China are making investors uneasy, pushing the VIX above 22, a level we haven’t consistently seen since the regional banking stress in 2023. This demand for dollars may continue to affect pairs like EUR/USD and GBP/USD in the short term. Traders should closely monitor the upcoming speech from Fed Chair Powell for hints that the two expected rate cuts may still happen this year. The latest September CPI data shows a manageable 2.1%, giving the Fed the flexibility to ease policy if the economy worsens. Any dovish comments could reverse the dollar’s recent strength and act as a strong catalyst for risk assets. Gold continues to be a safe haven, holding steady above $4,100 an ounce, close to the all-time highs reached earlier this month. Geopolitical uncertainty and the possibility of lower interest rates provide support for its price. Using call options on gold futures is a smart strategy to maintain potential gains while managing risk, especially after its record surge from below $3,000 at the beginning of 2025. In the UK, the data points to a weaker Pound Sterling, as the unemployment rate rose to 4.8% for the quarter ending in August. This is up from the 4.2% average seen in the first half of 2025, suggesting a slowdown in the British economy. We expect GBP/USD to stay weak, and traders might consider put options to benefit from a potential drop towards the 200-day moving average. On the other hand, South Africa’s business confidence reading for August shines as a positive sign in the global outlook. The index reaching 121.1 is the highest since before the global energy crisis in 2022, indicating strong domestic fundamentals. This may present an opportunity to buy South African Rand (ZAR) against a weaker currency like the Pound. The crypto market continues to be shaped by long-term trends, with Amundi’s planned Bitcoin ETP for 2026 highlighting ongoing institutional interest. While this doesn’t affect immediate prices, it adds to the positive sentiment in the digital asset market. For derivative traders, this reinforces the strategy of selling longer-term puts to earn premium, reflecting the belief that major institutional players are preparing for the future. Create your live VT Markets account and start trading now.

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