The EUR/USD dropped to around 1.1650 due to renewed political issues in France. The GBP/USD is struggling under 1.3400 as it faces a stronger US Dollar. Gold remains strong above $3,900, supported by a dovish Federal Reserve and increased demand for safe havens.

Bitcoin Falls Behind Gold

In the third quarter, Bitcoin lagged behind gold, which reached record highs and saw double-digit gains. Meanwhile, FXStreet has revamped its design to enhance its editorial and business approach. The price of Aptos (APT) is stabilizing, thanks to rising retail demand and an increase in stablecoin supply. Switzerland’s unemployment rate has recently risen to 3.0%, signaling a slight economic slowdown. This could lead to a more dovish stance from the Swiss National Bank, especially since they last cut rates in June 2025. In this context, strategies betting on the Swiss Franc’s weakness, like buying call options on the USD/CHF pair, might be profitable in the upcoming weeks. Political instability in France is putting downward pressure on the Euro, and this is showing up in the credit markets. The gap between French and German 10-year government bonds has widened to 85 basis points, a level not seen since the political uncertainties of 2024. Given this and the Eurozone’s recent manufacturing PMI of 48.5 for September, buying put options on the EUR/USD could be a smart move to prepare for further declines.

Opportunities in Japanese and European Markets

The weakness in Europe is driving a flight to safety, benefiting both Gold and the US Dollar. Gold is nearing $3,950 an ounce, supported by steady demand from central banks, which added 85 tonnes to their reserves in the third quarter of 2025. Traders might consider buying call options on gold futures to take advantage of this upward trend, likely to continue with heightened geopolitical risks. There’s a clear contrast between the struggling European markets and the bullish Japanese market, with the Nikkei 225 aiming for 49,300. This creates an opportunity for relative value trades. We suggest a pairs trade: going long on Nikkei futures while shorting a European index like the Euro Stoxx 50 could effectively capture the difference in economic sentiment. Create your live VT Markets account and start trading now.

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