The United States Housing Price Index in May dropped by 0.2% compared to the previous month, aligning with expectations. This trend shows a steady cooling in the US housing market without any surprises. The AUD/USD currency pair weakened again, falling to a two-week low after breaking below the 0.6500 support level. This was the fourth straight session of decline, driven by a stronger US Dollar. The EUR/USD also pulled back, reaching around 1.1520, a level not seen since late June. This movement occurred alongside a rally in the US Dollar and recent announcements about US-EU trade agreements. Gold prices are stabilizing at around $3,330 per troy ounce, following a recovery. This stabilization is occurring amid a stronger US Dollar and lower yields. Ripple (XRP) is moving sideways and holding crucial support at $3.00 but is under significant pressure. Attempts to recover from a 16% drop from its peak of $3.66 have mostly failed. On the economic policy front, there’s growing scrutiny over the Fed’s decision to delay interest rate cuts. Ongoing tariff issues and a strong economy are cited as reasons for this pause, but concerns about their impact on the market remain. As of July 29, 2025, the expected drop in the United States Housing Price Index suggests the market is cooling rather than collapsing. This gradual adjustment, along with the S&P Case-Shiller U.S. National Home Price Index showing similar small declines over the past quarter, allows the central bank to keep its current policies. Traders should look for opportunities that benefit from high-interest rates in the near term. The ongoing delay in rate cuts is driving a strong rally in the US Dollar, which is likely to be the key theme in the upcoming weeks. The Dollar Index (DXY) has recently surpassed 107.50—its highest level since early last year—reflecting how the market is adjusting to this difference in policies. We believe that long positions on the dollar against other major currencies will likely remain profitable. As a result, we are considering put options on the Australian dollar, especially after it fell below the 0.6500 mark. Similarly, with the Euro dropping to a five-week low around 1.1520, opportunities arise for shorting EUR/USD futures since the European Central Bank has taken a more dovish approach compared to the US. The widening gap between the central banks’ policies presents a clear trend for traders. Gold continues to hold its high valuation despite the pressures from currencies. This strength is backed by U.S. 10-year Treasury yields falling below 3.4%, which traditionally boosts the appeal of non-yielding assets. We expect the gold market to remain stable, making strategies like selling covered calls or establishing strangles appealing to profit from its consolidation around $3,330. The crypto market is facing notable weaknesses, and we are cautious about whether it can maintain the $3.00 support level. The overall sentiment in the crypto market, as indicated by the Fear & Greed Index, has shifted back to “Fear” below 40, reflecting a general bearish outlook. We would consider buying put options or initiating short positions if the price fails to rebound, as breaking through this psychological level could lead to a quick decline.

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