The Baker Hughes oil rig count in the United States fell to 410, down from 415. This drop reflects changes in the oil industry. After weak employment and manufacturing data from the US, the EUR/USD pair rose above 1.1550. The US Dollar weakened, helping other currencies gain strength.

GBP/USD Reverses Losses

GBP/USD climbed above 1.3250, ending a six-day losing streak as disappointing US job numbers lessened the Dollar’s power. At the same time, gold prices hit around $3,350, reacting to lower US Treasury yields. Cryptocurrencies faced difficulties even after a strong July. Bitcoin dropped below $115,000, raising concerns about support levels with rising liquidations. In the euro area, resilience is apparent due to the EU-US agreement and Germany’s fiscal strategies. However, there’s still uncertainty about future economic indicators that may lead to policy changes. Various brokers are providing trading opportunities with features like competitive spreads and quick executions. This allows traders of all experience levels to participate effectively in the Forex market.

US Dollar Under Pressure

Weak jobs and manufacturing data continue to put pressure on the US Dollar. The July 2025 non-farm payroll report revealed only 85,000 new jobs, well below the expected 190,000. This points to a slowing economy. We see a chance to short US Dollar Index futures or buy put options on the dollar in the weeks ahead. We anticipate stronger performance for the euro and the pound against the dollar. With EUR/USD surpassing 1.1550 and the July 2025 Eurozone CPI coming in slightly higher at 2.4%, the European Central Bank may hesitate to cut rates as quickly as the US Federal Reserve. Buying call options on EUR/USD and GBP/USD could be a good way to ride this upward trend. Investors are turning to safety as gold prices rise above $3,350 an ounce. This increase is driven by the US 10-year Treasury yield dropping below 3.50%, a level not seen since early 2024, making gold a more attractive choice. We are considering purchasing gold futures, based on past rallies in similar low-yield situations, like the one after the 2020 global pandemic response. The decrease in the US oil rig count to 410 suggests a tight supply ahead. Yet, concerns about weak demand balance this out, as seen in the latest Energy Information Administration (EIA) report that showed a surprising increase in crude inventories of 2.1 million barrels. This tug-of-war between supply and demand creates high volatility, making options strangles on WTI crude futures an interesting strategy. Cryptocurrencies appear to be losing steam after a strong July. With Bitcoin falling below $115,000 and open interest leaning towards short positions, we expect more consolidation or a deeper correction. We’re thinking about buying put options on Bitcoin to protect against a potential drop to the $100,000 support level. Create your live VT Markets account and start trading now.

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