The Eurozone’s Producer Price Index (PPI) in August saw an annual drop of 0.6%, worse than the expected decrease of 0.4%. US economic data has impacted financial markets. The US dollar weakened, benefiting EUR/USD and GBP/USD pairs, while gold prices moved closer to $3,890 per troy ounce.

Bitcoin Performance

Bitcoin hit a high of $120,960 before settling just below $120,000. Both Ethereum and Ripple remained near their weekly highs, thanks to steady demand in the market. Pump.fun, associated with Solana’s meme coin launchpad, showed resilience above $0.0070, encouraged by positive technical signs. FXStreet unveiled a new look as part of its strategic goals. For 2025, top brokers were identified for Forex trading, focusing on low spreads and EUR/USD dealings. The guide also includes brokers offering high leverage, regulated options, and Islamic or swap-free accounts. FXStreet recommends that traders research thoroughly before making any financial decisions due to potential risks. They stress that the information provided is for educational purposes only and is not a trading recommendation.

Economic and Political Uncertainty

The Eurozone PPI falling more than expected indicates weakening demand, pressing the European Central Bank to delay any tightening actions, especially since the latest flash HICP inflation for September was only 1.5%. We see potential in derivatives that speculate on European interest rates staying low for the rest of the year. The US government shutdown, now in its third week, remains a key factor behind the dollar’s weakness. The Dollar Index (DXY) has dropped from over 105 to around 101 in the past month. Traders might want to short the dollar against major currencies using futures or by buying call options on pairs like EUR/USD. The strength of gold is directly linked to the uncertainty in Washington and the weakening dollar. After a strong uptrend throughout 2024, gold is now finding support for a rise past $3,900 an ounce. We think that purchasing call spreads on gold futures could provide a good risk-reward for further gains. With the current political and economic uncertainty, a spike in market volatility is likely in the weeks ahead. The VIX index has surged from a low of 15 to above 25, indicating rising investor concern. To prepare for larger price swings, consider buying options straddles on major indices, which can benefit from significant movements in either direction. Create your live VT Markets account and start trading now.

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