Spain’s industrial output rose by 3.4% year-on-year in August, an increase from 2.5% earlier. This shows growth in Spain’s industrial sector. At the same time, global economic events are affecting currency and commodities. The EUR/USD pair has dropped due to political issues in France, causing the Euro to struggle, while the USD gains strength. Gold remains strong, nearing record highs as investors seek safety amid fears of a U.S. government shutdown.

Cryptocurrency Market Volatility

The cryptocurrency market is experiencing volatility, with Bitcoin performing poorly compared to traditional assets like Gold in Q3. While Gold continues to rise to record highs, Bitcoin only saw slight gains. Meanwhile, the Aptos (APT) blockchain token is gaining attention from retail investors thanks to stablecoin activity. FXStreet has launched a new design to improve its editorial strategies and has highlighted top brokers to watch in 2025. They are assessing brokers based on competitive spreads, high leverage, and regulation in various regions. This information is intended to help traders manage investment risks better. We are seeing mixed signals from Europe that suggest upcoming volatility. The strong Spanish industrial output, rising by 3.4%, indicates some economic strength. However, this positive trend is overshadowed by political turmoil in France, which is negatively impacting the euro. The resignation of the French Prime Minister has caused the EUR/USD to fall to around 1.1650, a sharp decline after its recent rally. This political instability makes long positions in the euro risky, so buying put options on the euro may be a good hedge against further uncertainty. The French CAC 40 equity index has also seen increased volatility, with futures dropping over 2% since the news broke.

Gold’s Impressive Run

Gold is on an impressive run, trading above $3,900 an ounce as investors look for safety. Concerns about a possible U.S. government shutdown and lower-than-expected U.S. CPI data are increasing speculation that the Federal Reserve may soon cut rates. For derivative traders, call options on gold are an attractive strategy to capture further gains. Despite the dovish outlook for the Fed, the U.S. dollar is strengthening and acting as a primary safe-haven asset alongside gold. This is putting pressure on pairs like GBP/USD, which is struggling below 1.3450. We should keep an eye on this trend, where negative news globally tends to benefit the dollar disproportionately. Create your live VT Markets account and start trading now.

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