In July, total vehicle sales in the United States rose to 16.4 million units, up from 15.3 million the month before. This increase shows a growing demand for vehicles nationwide. The EUR/USD exchange rate has climbed above 1.1550 due to disappointing US Nonfarm Payrolls (NFP) and ISM Manufacturing PMI data. As a result, the US Dollar is under selling pressure, helping the currency pair’s performance. Similarly, GBP/USD turned positive above 1.3250, bouncing back from a six-day losing streak. The weaker USD, stemming from disappointing employment figures, allowed GBP/USD to recover some losses. Gold prices hit weekly highs around $3,350 after the US NFP data caused Treasury bond yields to drop. This shift in the Federal Reserve’s rate outlook fueled a bullish trend in the XAU/USD pair. Cryptocurrency markets faced challenges, even with a strong July where Bitcoin and some altcoins reached record highs. Right now, Bitcoin is below $115,000, as bears target the $112,000 support level amid rising liquidations. The surge in July auto sales to 16.4 million units signals strong consumer spending, supported by recent earnings from major dealerships. This contrasts with weak jobs data from the Nonfarm Payrolls report, suggesting a complex economic picture. Traders should prepare for volatility in US equities and indices. With EUR/USD now above 1.1550, we are looking at call options to take advantage of this momentum against the weaker dollar. The latest Eurozone inflation rate for July 2025 is 3.1%, slightly above expectations, leaving the European Central Bank with less room to ease policy compared to the Fed. This difference in central bank outlooks is similar to trends we saw in 2021. The recovery in GBP/USD above 1.3250 is significant, but we remain cautious about the UK’s challenges. Minutes from the Bank of England’s July 2025 meeting showed a split vote on future policy, creating uncertainty for the pound. We plan to use options spreads to navigate the expected volatility instead of simply betting on the currency’s direction. Gold’s rise toward $3,350 results from the US 10-year Treasury yield falling below 3.5% for the first time since spring 2025. This drop in yields makes non-yielding gold more appealing, prompting us to consider long-dated futures to capture a potential move toward the $3,500 resistance level. Historically, gold tends to perform well when the market believes the Federal Reserve has finished raising rates. In the crypto market, we’re monitoring the current pullback as a test of the recent bull run. The sell-off intensified after more than $500 million in leveraged long positions were liquidated in the last 48 hours across major exchanges. We are keeping an eye on the $112,000 support level for Bitcoin; if it fails to hold, it could lead to put options targeting the psychological $100,000 mark.

here to set up a live account on VT Markets now