The UK’s Rightmove House Price Index rose by 0.1% in October, a positive shift from the previous -0.1%. This suggests a small improvement in the housing market for the month. In global finance, the total cryptocurrency market saw significant liquidations, exceeding $1 billion in just 24 hours. Major cryptocurrencies, including BNB, Solana, and Cardano, dropped by more than 10%.

Currency and Commodity Trends

The EUR/USD fell to daily lows around 1.1650 as the US Dollar gained strength. Similarly, GBP/USD faced pressure, nearing the 1.3400 mark due to rising geopolitical tensions and worries about US-China trade. Gold prices decreased, trading around $4,245, as demand dropped after the festive season, ending a recent rally. Economic data for US CPI and PMI are set to be released soon, which could impact the Federal Reserve’s decisions. Meanwhile, UK inflation stats may influence the Bank of England’s actions. Despite some economic disturbances, Asia’s market outlook this week is positive. Key market factors include various international CPI and PMI releases, which could affect central bank policies. The small rise in the UK housing market, now showing positive growth year-over-year in the Rightmove index, is a notable change from earlier declines. UK inflation remains high, with a September 2025 reading of 3.1%. This may lead the Bank of England to delay any planned rate cuts, suggesting that traders could prepare for volatility in the British pound by using straddles or strangles on GBP/USD before the next inflation report.

US Dollar and Market Sentiments

The strength of the US dollar stems from general risk aversion, with the Dollar Index (DXY) remaining steady above 106.5. This trend is driven by S&P’s downgrade of France’s sovereign credit and ongoing geopolitical tensions in the Middle East. As a result, buying call options on the dollar and oil futures, with WTI crude near $95 a barrel, is a wise way to guard against further instability. Gold’s decrease below $4,250 seems to be a consolidation after its festive rally. In the past, gold has performed better during times of high government debt and global uncertainty, much like the European debt crisis in 2011. We see this dip as a potential opportunity to buy long positions through call options, expecting a rebound if upcoming US CPI data shows stubborn inflation. There’s a notable contrast between the strong sentiment in equity markets and the warning signs from macroeconomic data. The CBOE Volatility Index (VIX) has increased to 22, indicating that options traders foresee more risk than the current stock market suggests. The recent billion-dollar liquidation in the crypto market also reflects a declining appetite for speculation, making protective put options on major indices a smart choice. Create your live VT Markets account and start trading now.

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