The United States Redbook Index dropped to 5.1% year-on-year as of July 18, down from 5.2%. This decrease shows a slight change in retail sales growth compared to earlier. The EUR/USD pair rose to about 1.1760, thanks to factors that weakened the US Dollar. The GBP/USD also increased, surpassing 1.3500, driven in part by growing doubts about the US Dollar.

Gold Market Movement

Gold prices hit new five-week highs, surpassing $3,400 per troy ounce. This increase is linked to the weakening US Dollar, lower US yield rates, and ongoing trade concerns. Bitcoin held steady above $118,000 as SpaceX transferred $150 million in Bitcoin after being inactive for some time. Meanwhile, Ethereum fell toward the $3,600 level amid continued spot ETF inflows. During the first half of Trump’s second term, various approaches have been taken, focusing on sectors like trade and defense. The Forex market remains dynamic, presenting competitive trading opportunities for currency pairs. Given the small dip in the Redbook Index, we suspect consumer spending may be slowing. If this trend continues, the Federal Reserve might take a more cautious approach, putting additional pressure on the US Dollar. We suggest that traders consider buying put options on major retail ETFs to hedge against a slowdown in spending.

Forex and Market Opportunities

The ongoing weakness of the US Dollar creates clear opportunities in the forex market. We expect the upward trends in EUR/USD and GBP/USD to continue in the near future. Traders should look to establish long positions using call options or futures contracts to take advantage of this momentum. With gold breaking important technical and psychological levels, we see strong fundamental support for its rally. A declining dollar, lower US bond yields, and trade policy issues are all contributing factors. We’re confident in adding to long positions, as historical trends show that gold tends to perform well during times of high geopolitical uncertainty. The crypto market shows a stark difference between the two leading assets. Bitcoin’s stability indicates institutional support, making the sale of out-of-the-money puts an appealing strategy to earn premiums. Ethereum’s pullback, despite positive news, may just be a short-term consolidation, presenting a potential entry point for long-term investors. The administration’s policy priorities add uncertainty, especially around international trade. This environment strengthens our positive view on safe-haven assets. We recommend using options to structure trades that can benefit from volatility while protecting portfolios from sudden market shifts due to new policy announcements. Create your live VT Markets account and start trading now.

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