Switzerland’s SVME Purchasing Managers’ Index for October came in at 48.2, surpassing the expected 47.5. This indicates a small improvement in Swiss manufacturing. Meme coins like Dogecoin, Shiba Inu, and Pepe are facing challenges. Data shows that risk exposure has decreased among both large holders and retail investors. Cardano (ADA) dropped 6%, continuing its recent decline, as on-chain activity weakens and short positions rise.

Global Markets Exercising Caution

Global markets are cautious, even with the Federal Reserve’s rate cuts and strong corporate earnings. The US Dollar remains strong, while Gold is trading around $4,000 following comments from Fed officials and rising Treasury yields. The GBP/USD stays low in the mid-1.3100s, struggling for investor confidence due to UK fiscal challenges. This comes despite the US Dollar stabilizing after a Fed-driven rise. The EUR/USD is under pressure as it nears 1.1500, its lowest since August, affected by the US Dollar’s broad strength and upcoming US economic data. Due to the US Dollar’s strength, we anticipate major currency pairs will likely trend downward. The recent US inflation data shows Core CPI stubbornly high at 3.8% in October 2025, supporting the Fed’s cautious approach. Buying put options on the EUR/USD may be wise, especially as it nears the psychological 1.1500 support level, which may break soon. The situation with Pound Sterling is concerning due to the UK’s ongoing fiscal challenges. The debt-to-GDP ratio has risen to 105%, the highest since post-WWII. Ahead of next week’s Bank of England meeting, we expect increased volatility, making a long straddle a good strategy for profiting from major price moves. However, because of the underlying weakness, we prefer buying puts on GBP/USD to protect against further declines below the 1.3100 mark.

Gold Stability Opportunity

Gold’s stability around $4,000 offers a chance for income generation in this sideways market. We’ve seen similar consolidation before, like in 2023 when gold lingered around $2,000 before rising sharply. Selling out-of-the-money call and put options (a short strangle) may help us collect premiums, banking on hawkish Fed comments and high US 10-Year Treasury yields, currently around 4.9%, to keep gold prices stable. In the crypto market, the indicators are clearly bearish, and it’s time to respond. On-chain data shows a 15% increase in Cardano supply on exchanges over the last month, suggesting holders are gearing up to sell. We see value in creating short positions using perpetual futures on ADA and other meme coins or buying puts on broad crypto-tracking ETFs. While the Swiss manufacturing PMI beat estimates, it is still below the 50 mark, indicating contraction for the fifth month in a row. This slight positive surprise doesn’t change our view of the fragile European economy; instead, it highlights the growing divide between the US and European economies, reinforcing our short positions on the EUR. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now