The US Federal Reserve plans to lower the policy rate after its October meeting.

The Importance of Fed’s Words

The wording in the Fed’s statements and comments from Chair Powell will be very important since there hasn’t been much recent economic data. Solana has teamed up with Western Union, a top remittance network. Interest in Solana is growing, as shown by the Bitwise Solana Staking ETF, which had $56 million in trading volume on its first day. In the UK, mortgage approvals for September 2025 came in higher than expected at 65,940, indicating strength in the housing market. This may cause the Bank of England to be more careful about cutting rates too quickly, especially since core inflation has stayed around 3% earlier this year. It might be wise to prepare for UK interest rates to stay a bit high, possibly by exploring options on short-sterling futures that do well if rate cut expectations are delayed.

Anticipated Rate Cut from the Bank of Canada

The Bank of Canada is likely to lower its interest rate to 2.25% this Wednesday. This change seems to already be included in market prices. The important part will be the bank’s future guidance, which we expect to be cautious given that Canada’s GDP growth slowed last quarter and unemployment recently rose to 6.2%. This suggests continued weakness for the Canadian dollar, making options that bet against the CAD compared to the US dollar an appealing choice. We also expect a rate cut from the US Federal Reserve after their meeting this week. Since many anticipate this, the market’s direction will rely heavily on Chair Powell’s comments about future plans, particularly with core inflation metrics like PCE easing to 2.5%. A cautious tone could lessen market volatility, making it a good opportunity to consider buying call options on the S&P 500 or selling VIX futures. The partnership between Solana and Western Union, along with strong ETF inflows, shows increasing institutional acceptance of the asset. We saw a similar trend in early 2024 when new Bitcoin ETFs gained over $12 billion in net inflows in their first two months, leading to a significant price surge. This indicates potential volatility and growth for SOL, making strategies like buying call options or selling cash-secured puts reasonable ways to take advantage of this momentum. Create your live VT Markets account and start trading now.

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