The US SEC has approved new standards for listing crypto ETFs, which is a positive step for the cryptocurrency market. In other news, a golden statue of Trump holding Bitcoin was seen outside the Capitol before the Federal Reserve’s rate decision. Additionally, Trump’s proposed tariff on EU goods has caused the EURUSD to drop.

Bank Of England Expectations

The Bank of England is likely to slow down bond sales and keep interest rates at 4%. Meanwhile, China’s excess of vehicles has led to discounts and grey markets, raising concerns for manufacturers. In New Zealand, the GDP fell by 0.9% in the second quarter, worse than the expected decline of 0.3%. The FOMC shows a neutral stance, but ongoing inflation may delay any rate cuts. In a tragic event, three police officers were fatally shot in Pennsylvania, USA. A general risk warning highlights that foreign exchange trading is risky, and people should only invest money they can afford to lose.

InvestingLive Information

InvestingLive offers market information for educational purposes only and does not provide investment advice. They may also receive compensation from advertisers through user interaction. The SEC’s approval of listing standards for crypto ETFs is a big win for the industry. This move could speed up the launch of new products, increase market access, and attract new investments in digital assets. Derivative traders might consider buying longer-term call options on Bitcoin and Ethereum, expecting increased volatility and price rises, similar to what we saw after the initial spot ETF approvals in 2024. Trump’s proposed 15-20% tariff on EU goods brings significant geopolitical risk, putting pressure on the EURUSD exchange rate. This situation may create an opportunity to short the Euro through futures or put options, as trade-war talk usually weakens that currency. This uncertainty could also increase market volatility, making call options on the VIX a potentially useful hedge against a broader market decline. The Federal Reserve is remaining cautious, indicating that stubborn inflation is delaying any rate cuts. Core inflation rose above 3% according to the latest August 2025 Consumer Price Index data, leading the market to possibly give up on hopes for rate easing this year. This “higher for longer” scenario supports a strong US dollar and suggests caution with rate-sensitive growth stocks, such as using put spreads on the Nasdaq 100. Economic troubles outside the US are becoming more evident, illustrated by New Zealand’s GDP drop and the troubling oversupply of cars in China. These issues reinforce a narrative of global slowdown, which should strengthen the US dollar against commodity currencies like the NZD and AUD. We advise caution with long positions in industrial commodities, as China’s slowing manufacturing has often predicted declines in copper and oil prices. Create your live VT Markets account and start trading now.

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