The Rightmove House Price Index for October in the UK showed a monthly rise of 0.3%, down from 0.4% last month. This change reflects the overall economic conditions and trends affecting the UK housing market. **Market Movements** The article notes several market movements, including gold prices and currency exchanges. Gold is trading at about $4,245 as demand has decreased after the festive season. Currency pairs like GBP/USD and EUR/USD are under pressure due to developments in the US-China trade relationship. In the cryptocurrency market, there has been a lot of activity, with over $1 billion in liquidations happening in the last 24 hours. BNB, Solana, and Cardano all experienced significant drops, each losing more than 10%. Upcoming economic data, including US CPI and PMI figures, could impact financial markets and central bank policies. There is potential for Eurozone PMI releases to influence ECB rate decisions, along with expected CPI data from Canada and Japan. The article also provides insights on brokerage services and trading across various regions, currencies, and commodities. It warns readers about the risks linked with open market investments and the need for thorough research. **Currency Trends** The US Dollar is gaining strength, pushing EUR/USD down to around 1.1650 and testing 1.3400 for GBP/USD. This recovery of the dollar is likely due to a shift away from risk and indications of a softer US-China trade approach. For derivatives traders, this means there may be opportunities for continued dollar strength, making put options on the Euro or Pound appealing. In the UK, the housing market is cooling down, with house price growth slowing to 0.3% this month. This slowdown, along with the upcoming UK inflation report, will be important for the Bank of England’s interest rate decisions. We see a higher likelihood of a rate cut in the near future, suggesting bearish strategies on the pound could be beneficial. Attention is now focused on upcoming US inflation and PMI data, which will test market expectations for a Federal Reserve rate cut. Currently, futures indicate more than a 60% chance of a rate cut by year-end. If inflation is higher than expected, these bets may reverse quickly, resulting in a stronger dollar. New Zealand’s dollar is showing some strength after its quarterly inflation came in as expected at 3.0%. This supports the idea that its central bank can afford to be patient. In contrast, the Australian dollar may be impacted by upcoming Chinese GDP figures, which are anticipated to slow to 4.2% annual growth. This difference could create an interesting opportunity for a long NZD/AUD trade. Gold’s recent rise to over $4,200 an ounce seems excessive, as physical demand is now declining. After a record rally from below $3,000 in early 2024 to these highs, the market appears tired. Selling out-of-the-money call options could be a strategy to benefit from a possible price correction or a period of stability. Market sentiment is shifting toward caution, highlighted by over $1 billion in liquidations across the crypto markets within a single day. This trend in speculative assets indicates a movement toward safety, typically benefiting the US dollar. We see this as a warning that the recent rise in equities might be at risk. Create your live VT Markets account and start trading now.

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