The Baker Hughes US oil rig count has dropped from 424 to 422. This change highlights what’s happening in the US oil industry right now. Reports show that China’s economy is stable, with a 5.2% increase in GDP in the second quarter compared to last year. However, there are worries about slowdowns in retail sales and falling property prices.

Foreign Exchange Market Movements

In the foreign exchange market, the EUR/USD has risen above 1.1650 due to lower US consumer inflation expectations. Similarly, GBP/USD went up past 1.3450 because of a weaker US Dollar on Friday. In the commodities sector, gold prices have exceeded $3,350 as US Treasury yields have dropped. In cryptocurrency, Bitcoin is close to its all-time high, while Ethereum is trying to hit $4,000, and Ripple reached a record of $3.66. The report also highlights recommended brokers for various trading scenarios in 2025, focusing on features such as low spreads and high leverage. As always, it’s important to be cautious and aware of the risks involved in these investments. Given the small drop in the rig count, which has stayed under 500 for most of 2024, it appears that oil producers are being careful with their spending. This could mean that oil supply will remain tight, making a case for higher crude oil prices. Derivative traders might want to consider buying call options on WTI or Brent futures to take advantage of possible price rises.

Mixed Economic Signals From China

China is sending mixed economic signals, with Q1 GDP growth at 5.3% but ongoing issues in the property sector, adding uncertainty for industrial metals. Thus, we advise caution with commodities tied to Chinese construction and manufacturing. It may be wise to take bearish positions on copper using put options or futures contracts. A weaker US Dollar is a major theme as markets expect future interest rate cuts from the Federal Reserve. With the EUR/USD around 1.08 and recent inflation data showing a slowdown, we see a good opportunity. We recommend buying call options on currencies like the Euro and the British Pound to benefit from further dollar weakness. Gold continues to be appealing as US Treasury yields have come down from recent highs. With prices around $2,350 per ounce, it acts as a solid hedge against potential changes in monetary policy. Any price drops could be seen as chances to invest in gold derivatives. The cryptocurrency market is taking a breather after a strong rally. Bitcoin is stabilizing below its record high of about $74,000. The recent approval of spot Ether ETFs is a promising long-term sign, but short-term price movements have been volatile. Traders should think about volatility strategies, like straddles or strangles, to profit from significant price shifts. Create your live VT Markets account and start trading now.

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