Mexico’s unemployment rate rose slightly to 3% in September, up from 2.9% the month before. This small change reflects shifts in the country’s job market during this time. In currency markets, GBP/USD fell below 1.33 due to growing financial concerns in the UK and an upcoming budget. Similarly, USD/CAD dropped because of weak US consumer confidence, while USD/CHF decreased as the Swiss franc strengthened, partly due to expectations of a Federal Reserve rate cut.

Gold Prices and Cryptocurrency Performance

Gold prices stabilized above $3,900 after reaching a three-week low, benefiting from eased trade tensions between the US and China. At the same time, Bitcoin and other cryptocurrencies like Ethereum and Ripple performed steadily, thanks to renewed ETF investments, hinting at a possibly positive trend by the end of the month. Global markets reacted favorably to the US-China trade deal, easing worries following prolonged tariff threats. In the crypto world, Pump.fun gained momentum, surpassing the $0.0050 mark as overall market sentiment improved. Investing in the markets carries risks, so FXStreet urges thorough research before making any financial decisions. The platform provides educational information and does not offer investment advice or guarantee accuracy.

Market Speculation on USD Movement

The market is anticipating a weaker US dollar, with traders nervous about the Federal Reserve’s policy decision this Wednesday. Probabilities from the CME FedWatch tool suggest over an 80% chance of a rate cut, a notable change after last month’s Consumer Price Index revealed inflation cooling to 2.8%. This expectation is a key factor driving the dollar’s decline against major currencies. With the UK facing financial hurdles and a potential rate cut from the Bank of England, shorting the Pound Sterling seems advisable. Last quarter’s GDP growth was only 0.1%, giving the BoE little reason to maintain a strict policy. This supports the idea that GBP/USD will likely stay below the 1.33 level. Traders might consider using put options on the pound or short futures contracts to bet on further weakness. Gold is gaining from the weaker dollar and is nearing the important $4,000 per ounce mark. This price movement is similar to the breakout we saw in 2024 when gold crossed its previous all-time highs. Call options with strike prices just above $4,000 could offer potential upside. Declining US Treasury yields are also making gold, which does not yield interest, more appealing. The slight uptick in Mexico’s unemployment rate to 3.0% isn’t a significant concern, but it may indicate a cooling economy. After Banxico kept rates steady at its last meeting, this could lead to a more cautious approach that might introduce some volatility for the peso. A short-term options straddle on USD/MXN could be an effective way to trade any potential breakouts. In the cryptocurrency sector, bullish momentum remains strong, with Bitcoin holding steady above $114,000. The increase in investments into spot Bitcoin ETFs, which gained popularity after initial approval in early 2024, continues to support the market. Selling out-of-the-money put options could be a strategy for collecting premiums while maintaining a bullish to neutral outlook on the asset. Create your live VT Markets account and start trading now.

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