Australia’s S&P Global Manufacturing PMI for October is at 49.7, signaling that the manufacturing sector is still contracting. The Dow Jones Industrial Average faced a week-long stall, continuing through Friday. This has impacted the broader market and investor sentiment.

Meta Platforms Sell Off

Meta Platforms’ stock is in a downturn driven by earnings concerns, which have shaken market confidence. The EUR/USD ended October on a weak note, staying just above a three-month low at 1.1522. Similarly, GBP/USD declined, reaching new six-month lows. This was a result of a strong dollar and fiscal issues in the UK. Gold’s price has fallen to its lowest level since early October, influenced by hawkish comments from the Fed and US-China trade matters. The value of gold remains under pressure due to ongoing global economic conditions. Investor sentiment appears unstable after the Fed cut rates, and while strong earnings and trade stability are on the table, uncertainties remain. Future market shifts may depend on US data, central bank meetings, and broader economic strategies.

Bitcoin Anniversary

Bitcoin celebrates its 17th anniversary since Satoshi Nakamoto released its whitepaper. Over the years, it has evolved into a widely recognized asset class with institutional support. Given the Federal Reserve’s cautious stance, the US Dollar is likely to stay strong in the coming weeks. Recent inflation data from October 2025 revealed that core CPI remains steady at 3.8%, backing the idea of prolonged higher interest rates. Therefore, we may consider buying call options on the US Dollar Index (DXY) or selling EUR/USD futures, as this pair struggles near three-month lows. The British Pound is under pressure from a strong dollar and domestic financial issues, dipping to a seven-month low. Recent figures from the UK’s Office for National Statistics indicated that GDP growth for the third quarter of 2025 was only 0.1%, showcasing economic weakness. This situation makes buying put options on GBP/USD an appealing strategy to protect against further drops below the 1.3100 level. Australia’s manufacturing sector is indicating contraction, with the S&P Global PMI at 49.7 for October 2025. This weakness, along with a hawkish Fed, negatively impacts the Australian dollar. We see this as a chance to open short positions on AUD/USD, potentially through futures contracts, as we expect a further decline. Gold has fallen below the crucial $4,000 mark, pressured by the strong US dollar and a truce in US-China trade relations. Typically, a rising Dollar Index, which recently exceeded 108, poses challenges for dollar-priced commodities. We foresee further declines, making put options on gold futures (GC) a wise choice. Concerns about an oil surplus are increasing, leading OPEC+ to think about pausing output hikes next year. Recent data from the Energy Information Administration (EIA) in late October 2025 confirmed this concern, noting a surprise inventory increase of over 3 million barrels in the US. Selling crude oil futures or buying puts on WTI could help position for potentially lower energy prices due to weakening demand. With the Dow Jones stalling and major tech stocks like Meta Platforms declining, there’s growing uncertainty in the equity market. The CBOE Volatility Index (VIX) has risen from its lows near 14 in September 2025 to above 19, indicating that traders are anticipating more risk. This environment may favor strategies that benefit from volatility, such as purchasing straddles on major indices like the S&P 500. Create your live VT Markets account and start trading now.

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