The GBP/JPY exchange rate is steady but sees little activity due to a public holiday in Japan. Traders are being cautious ahead of the Bank of England’s interest rate decision on Thursday. The current rate is about 202.41, just below the day’s high of 202.79.

Technical Analysis

Technical indicators show that the exchange rate is recovering after testing support near the 200.00 level, which matches the 50-day simple moving average (SMA). This level acts as a strong support, helping the uptrend continue. However, the 21-day SMA at 202.81 provides resistance that might limit any immediate upward movement. If this resistance is overcome, the rate could rise toward 204.00 and 205.00, which would be the highest since July 2024. If the rate falls below the 200.00 support, it could create bearish pressure, targeting the October 3 high of around 198.87. Closing below this point may lead to more negative momentum, with the next support level at about 197.50. The Relative Strength Index (RSI) is currently at 53, which indicates a neutral position in the overall bullish trend. The Bank of England’s monetary policies impact the Pound significantly. Changes in interest rates to manage inflation can influence the currency’s value. In extreme situations, Quantitative Easing or Tightening might also affect the Pound based on economic conditions. With GBP/JPY at around 202.41, we remain in a waiting phase before Thursday’s Bank of England interest rate decision. The pair is currently capped by resistance near 202.81, while the 200.00 level offers strong support. This creates a clear range for traders to monitor for any breakout. The upcoming Bank of England meeting is crucial, particularly as UK inflation data from October showed a stubborn rise to 2.9%, well above the 2% target. This puts pressure on the central bank to stick to its hawkish approach, which supports the Pound. Any indication that rates will remain high could easily push the pair above its immediate resistance.

Impact of Policy Divergence

Meanwhile, the Bank of Japan is contributing to yen weakness, supporting the overall uptrend of the pair. At their meeting last week, officials kept their loose policy due to core inflation being below their target, reported at 1.8%. This difference in policies is a key reason why the exchanges around the 200.00 level have consistently attracted buyers. For traders expecting a hawkish surprise from the Bank of England, buying call options with a strike price just above 203.00 might be a cost-effective way to capitalize on a potential breakout. This strategy could benefit from a significant move toward the year-to-date highs near 205.00. Similar setups earlier in 2025 have led to sharp rallies when UK economic data exceeded expectations. On the flip side, if the Bank of England hints at a more dovish stance due to slowing growth, the 200.00 support level will become very important. A drop below this support zone could result in a quick decline. Traders might consider buying put options with a strike price below 200.00, targeting a move toward the 198.87 range. Given the uncertain nature of the upcoming announcement, implied volatility on GBP/JPY options has increased. Traders could explore strategies like straddles or strangles to profit from a significant price swing in either direction without needing to predict the meeting’s outcome. We are observing implied volatility in one-week options for the pair reaching levels not seen since the unexpected rate hold back in August 2025. Create your live VT Markets account and start trading now.

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The EUR/CHF exchange rate increased for a second day, driven by lower Swiss inflation affecting the Franc. In October, the Swiss Consumer Price Index (CPI) fell by 0.3% from the previous month and only rose by 0.1% compared to last year, raising concerns about disinflation. The Swiss National Bank (SNB) aims for inflation to stay between 0% and 2%. This recent data may lead the SNB to think about lowering interest rates, with the market predicting a 70% chance of a 25-basis-point cut to -0.25% within a year.

Swiss National Bank Rate Policy

The SNB’s policy rate was steady at 0.00% in September. However, officials hinted at possible rate changes if the economy declines. Switzerland’s SVME Purchasing Managers’ Index rose to 48.2 in October, while the Eurozone’s HCOB Manufacturing PMI returned to 50. Inflation measures how much prices for consumer goods and services are rising. Central banks typically aim for around 2%. When inflation is high, it can strengthen a currency because it may lead to higher interest rates that attract global investments. On the other hand, low inflation can weaken a currency. Inflation also affects gold prices; higher inflation makes gold less appealing compared to interest-earning assets. The weak Swiss inflation numbers from October 2025 are currently our main focus. With inflation year-on-year at just 0.1%, the SNB feels pressure to address disinflation, suggesting that the Swiss Franc could weaken. We observe a clear difference in policy direction between the SNB and the European Central Bank (ECB). While SNB officials are considering returning to negative rates, the ECB is focused on persistent wage growth and is not rushing to ease monetary policy. This mismatch is likely to support a continued rise in the EUR/CHF exchange rate, currently around 0.9300.

Strategies for Profiting from EUR/CHF

In the coming weeks, we are considering strategies that benefit from a rising EUR/CHF. Buying call options with strike prices near 0.9500 for the first quarter of 2026 is a way to capitalize on potential gains with defined risk. The market now sees a high chance of an SNB rate cut within a year, which should add to this upward trend. Looking back, we recall the SNB’s significant policy changes, particularly the 2015 de-pegging, showing their readiness to act decisively. During the last phase of negative interest rates in Switzerland, EUR/CHF consistently traded well above parity. While we do not expect an overnight return to 1.10, history indicates that when the SNB begins an easing cycle, the Franc can weaken considerably. Given this outlook, we are also thinking about selling out-of-the-money EUR/CHF puts to generate premium income, as we believe the SNB’s dovish approach will support the currency pair. Last week’s Swiss unemployment data, which showed a slight increase to 2.3%, adds to domestic economic worries and strengthens the case for SNB action. This makes short-term declines in EUR/CHF seem less likely. Create your live VT Markets account and start trading now.

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Impact of Oil Prices and Trade Tensions

The USD/CAD has risen slightly by 0.20% to 1.4040 but is finding it tough to surpass the 1.4050 resistance level. The Canadian Dollar is weak against the stronger USD, largely due to the Federal Reserve’s cautious approach on interest rates. The likelihood of a 25-basis-point cut in December has dropped to 69%, down from over 90%. The ongoing U.S. government shutdown is hurting market confidence and decreasing interest in commodity-related currencies like the Canadian Dollar. Falling Oil prices are also putting pressure on the Canadian currency. West Texas Intermediate Oil is at $60.50, partly because of the stronger U.S. Dollar, even though OPEC+ has decided to halt production increases until 2026. Trade tensions between Canada and the U.S. are impacting market feelings as well. Analysts warn that a rise in the Canadian Dollar may take time due to these risks. All eyes are now on the U.S. Institute for Supply Management’s Manufacturing PMI for October, since traditional data releases are blocked by the shutdown. The U.S. Dollar is showing mixed performance against major currencies, with notable strength against the Swiss Franc and some weakness against the Canadian Dollar on this day. With ongoing pressures on the Canadian Dollar, we expect the upward trend in USD/CAD to continue in the near future. The combination of a strong U.S. Dollar and dropping Oil prices makes it hard for the loonie to gain strength. This situation suggests that bearish positions on the Canadian Dollar could be beneficial.

Federal Reserve and Strategy Implications

Oil prices play a key role, as WTI has dropped toward $60.50 a barrel. This decline occurs despite OPEC+ promising to remain disciplined in their production, indicating that the market is more concerned about immediate demand. Last week’s U.S. Energy Information Administration (EIA) report showed a surprising inventory increase of 2.1 million barrels, raising worries about a supply excess that negatively impacts Canada’s main export. Meanwhile, the U.S. dollar is gaining support from a cautious Federal Reserve. Following last week’s meeting, the market has significantly reduced the chances of a December rate cut to 69%, a stark fall from over 90% just one week prior. With core PCE inflation steady around 2.8% year-over-year, the Fed has little incentive to rush into rate cuts, especially during the government shutdown, which delays important economic data. For traders using derivatives, this scenario suggests strategies that benefit from a rising USD/CAD exchange rate. We recommend buying call options on USD/CAD, which allows participation in any upward movement while keeping risk in check if momentum stalls around the 1.4050 resistance. Historically, we haven’t seen USD/CAD sustain similar levels since the oil price crash in early 2016 and the market chaos of March 2020. A solid break above 1.4050 could signal a move toward 1.4200 in the upcoming weeks, making trades targeting this next increase a smart choice. The ongoing government shutdown, now in its sixth week, adds complexity by increasing market volatility. Options can be a useful risk management tool since the lack of official economic reports leads to sharp market reactions to the few available data points, like today’s ISM Manufacturing PMI. Be ready for sudden, sentiment-driven movements instead of slow trends. Create your live VT Markets account and start trading now.

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The manufacturing Purchasing Managers’ Index (PMI) for Singapore was 50.1 in October, showing a slight growth in the manufacturing sector since it’s above the neutral 50 line. The USD/CHF currency pair hit a three-week high due to a weak inflation report and a strong US Dollar. Meanwhile, the GBP/USD pair remained steady as traders waited for the Bank of England’s interest rate decision.

Gold Prices and Meme Coin Trends

Gold prices stayed around $4,000 per troy ounce, but gains were limited by a strong US Dollar and cautious comments from Federal Reserve officials. Meme coins like Dogecoin and Shiba Inu are facing declines as major investors sell off their holdings, increasing supply pressure. Cardano’s (ADA) price dropped by 6%, trading below $0.58 after a 10% fall the week before. This drop is linked to lower on-chain activity and more traders taking short positions, which shows growing pessimism in the market. FXStreet shares insights based on expert analysis and emphasizes that this information isn’t investment advice. It highlights the importance of personal research before making investment choices, as trading in open markets comes with risks.

Singapore PMI and Global Demand Implications

Singapore’s manufacturing PMI of 50.1 suggests ongoing stagnation, marking the fourth consecutive month around the neutral 50 point. This weakness in a major Asian trade hub indicates that global demand is still weak. Therefore, it becomes more appealing to hold assets in stronger economies. The US Dollar is very strong, with the Dollar Index (DXY) now above 112, levels not seen consistently since late 2022. This strength is driven by a hawkish Federal Reserve, especially after the latest Core PCE inflation data came in at 3.1%, well above their target. This trend is likely to continue as long as the Fed focuses on combating inflation. As a result, the EUR/USD struggles near three-month lows, with little indication of a rebound. Similarly, GBP/USD is under pressure ahead of the Bank of England’s decision this week, where markets expect a 75% chance of no changes due to a fragile UK financial situation. Buying put options on these pairs could be a smart move for further dollar gains. Gold’s failure to maintain the $4,000 level raises concerns for bulls. The strong dollar coupled with rising US Treasury yields creates significant challenges for this non-yielding precious metal. Selling call options above this key level could be an effective way to benefit from limited upside potential. We’re also seeing stress signs in risk assets, with interest in meme coins declining and broader stock indices lagging behind a few tech giants. This kind of narrow market leadership often leads to increased volatility. Therefore, traders might want to consider buying protection, like put options on the S&P 500, to guard against a possible market downturn in the coming weeks. Create your live VT Markets account and start trading now.

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In October, Singapore’s Manufacturing PMI dropped from 50.1 to 50. This shift suggests a stable yet cautious outlook for the manufacturing sector, moving from growth to a neutral state. It’s important to keep an eye on this development in future economic reports.

Currency Market Trends

In financial news, several major currency pairs experienced changes. The GBP/USD stabilized at 1.3130 as traders stayed cautious ahead of the Bank of England’s rate decision. The EUR/USD remained near three-month lows, while the AUD/USD fell due to a stronger US Dollar. The commodity market showed mixed results, with gold trading close to $4,000 per troy ounce. This stability followed market corrections based on statements from the Federal Reserve and US Treasury yields. Cryptocurrencies faced a setback as interest in meme coins like Dogecoin, Shiba Inu, and Pepe faded. This downward trend reflected a decline in trader interest and a cautious approach to digital assets. Looking ahead to financial events, market sentiment is focused on central bank meetings and economic reports. The ongoing strength of the US Dollar and different paths for the Aussie and Pound are key topics for the upcoming week. The drop in Singapore’s manufacturing PMI to exactly 50 is a crucial indicator. It suggests the slowdown of Asian manufacturing, indicating reduced global demand. This signal recommends lowering exposure to cyclical assets and Asian stocks in the weeks to come.

Market Strategies Amid Economic Shifts

The US Dollar remains a central player in the market, with the Dollar Index (DXY) steady above 110. The latest US CPI data for October 2025 shows inflation at 3.5%, significantly above the Fed’s target. We expect officials to stay cautious, making it a good time to consider put options on pairs like the EUR/USD, which is struggling around three-month lows. Gold’s difficulty in holding above the $4,000 mark is closely linked to the strong dollar. It reminds us of the 2022-2023 period, when aggressive Fed policies limited precious metal prices despite high inflation. Selling out-of-the-money call options on gold futures could be a smart move to earn extra income, as a big price rally seems unlikely now. We should be ready for more volatility in currency markets, especially with the upcoming meetings of the Bank of England and the Reserve Bank of Australia. Implied volatility for GBP/USD options has already reached a three-month high, indicating the market is preparing for major price movements. Buying straddles could be a useful strategy to profit from these swings without guessing which way prices will go. The overall negative sentiment is also affecting more speculative investments, as large investors retreat from meme coins like Dogecoin and Shiba Inu. This trend signals a drop in risk appetite across the market. It supports our cautious outlook and suggests that cash and the US Dollar are currently the safest options. Create your live VT Markets account and start trading now.

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Brazil’s S&P Global Manufacturing PMI rose from 46.5 to 48.2 in October. This shows improvement in the manufacturing sector, but it still remains below 50.0, which indicates a contraction.

Market Fluctuations And Currency Movements

The increase in PMI suggests a positive shift, yet challenges persist in the sector. In financial news, various markets are fluctuating, with the US Dollar strengthening. This affects multiple currencies and commodities, such as gold, which is trading near $4,000. Forex pairs are either under pressure or stable. The GBP/USD is holding steady ahead of the Bank of England’s rate decision, while the EUR/USD is close to three-month lows. Meme coins like Dogecoin and Shiba Inu are declining as large investors show less interest. The Australian Dollar is gaining attention as discussions about policy continue. Cardano’s ADA has fallen below $0.58, continuing its downward trend due to weakening on-chain activity. These market changes create a complex environment for traders and analysts. The Brazilian manufacturing sector is showing some signs of life, with PMI rising to 48.2, but it’s still in contraction territory. Brazil’s central bank has recently lowered the Selic rate to 10.5% to promote growth, making this slight manufacturing uptick noteworthy. This presents an opportunity to sell out-of-the-money puts on Brazilian equities, allowing us to earn premium as we think the worst may be over.

US Dollar And Commodity Market Trends

The US Dollar is a major player in all markets, remaining strong near multi-month highs against the Euro and Pound. The latest US CPI data from October shows inflation at 3.1% and unemployment low at 3.8%, leaving the Fed with little room to ease. This makes long Dollar call options appealing against a range of currencies in the coming weeks. Gold’s struggle to maintain gains above $4,000 highlights a market caught between past events and current realities. While inflation and geopolitical risks from 2022-2024 pushed gold prices higher, today’s landscape is different. With a strong dollar and a hawkish Fed limiting gold’s upside, selling covered calls or setting up iron condors may be wise strategies to adopt. We are closely monitoring the Bank of England and Reserve Bank of Australia meetings as both the Pound and Australian Dollar weaken. The UK faces stubborn inflation, while Australia’s economic outlook is mixed due to signals from China. Consider positioning for volatility, such as straddles, or maintain bearish positions using puts on GBP and AUD against the Dollar. The struggles in meme coins and altcoins like Cardano signal that speculative excess is leaving the market. As large investors reduce risk, their capital is likely flowing back to the safety of the US Dollar, strengthening it further. Continuing to short crypto futures or buy protective puts on major crypto assets seems to be a sensible move until we see a shift in this trend. Create your live VT Markets account and start trading now.

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The Euro dropped against the US Dollar, falling from around 1.1670 last week to below 1.1500. This is a decline of about 1.3% over four days. The US Dollar gained strength because the Federal Reserve is confirmed on keeping interest rates high, which has made investors cautious. In the Eurozone, October saw a slight improvement in manufacturing activity, with the index rising to 50.0 from 49.8 in September. In Germany and other major economies, manufacturing figures also showed small gains, but they didn’t help the Euro much.

US Dollar Stability

The US Dollar remains steady as expectations for an interest rate cut in December have declined. The chances of a cut are down to 67% from over 90%. Focus now shifts to US Manufacturing PMI data, expected to rise to 49.2 from 49.1 in September. This could boost the Dollar further. Technical indicators show negative sentiment for EUR/USD, with support levels breaking below 1.1530. The ISM Manufacturing PMI is important for understanding manufacturing health. A reading above 50 means growth, which is good for the US Dollar, while below 50 indicates decline. The EUR/USD pair is weak, having dropped for four consecutive days to reach the 1.1500 level. This decline is driven by a strong US Dollar, as the Federal Reserve’s hawkish stance signals lower resistance for this pair. This trend is supported by a significant interest rate gap between the US and Eurozone. The Fed funds rate remains steady at 5.25-5.50%, while Eurozone inflation fell to a two-year low of 2.9% in October. This gives the European Central Bank little reason to match the Fed’s policies, driving the Dollar’s strength against the Euro.

Strategy Focus

In the upcoming weeks, we should focus on bearish positions. Any rise towards previous support levels of 1.1530 or 1.1550 should be seen as a chance to open new short positions. The momentum is clearly downward, and little in the European economic calendar is likely to change this outlook. Traders should think about buying EUR/USD put options with strike prices below 1.1500, targeting the 1.1440 level. Another approach is to sell out-of-the-money call spreads with strikes above the 1.1580 area. These strategies allow us to profit from a continued decline or a period of stability at these lower levels. Today’s ISM Manufacturing PMI release at 15:00 is a major event risk, especially with the ongoing government shutdown making private data even more important. Previously, we experienced a lengthy period of manufacturing decline in 2023 and 2024, so the market will respond strongly to significant deviations from the 49.5 estimate. A surprisingly strong number could strengthen the Dollar and further push down EUR/USD. Create your live VT Markets account and start trading now.

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The Euro dropped below 0.8770 after it couldn’t maintain gains above 0.8785, influenced by a strong UK manufacturing PMI report. This candlestick pattern, known as the evening star, indicates a possible change in market trends. As of Monday, the Euro is having a tough time holding its gains against the British Pound, with indicators hinting at a potential downward trend. UK’s October manufacturing PMI was revised to 49.7, showing some improvement but still in contraction. Meanwhile, the Eurozone’s manufacturing PMI hit 50.0, a slight increase from September’s 49.8. Germany’s PMI also saw a small rise, reaching 49.6 in October from 49.5 in September.

Bearish Candlestick Patterns

The daily candlestick chart shows a bearish evening star pattern, pointing to a possible trend reversal. The Euro is still above the mid-0.8700 range, but the RSI indicates it is losing momentum. The Euro might find support near the previous resistance at 0.8725, with important support zones between 0.8655 and 0.8665. Bullish attempts seem limited below 0.8785, while further resistance is near 0.8815. The Euro achieved minor gains against the Swiss Franc, marking its strongest daily performance. The currency heat map shows different strengths among major currencies, indicating mixed movements in the forex market. The Euro’s interaction with the US Dollar and other currencies is displayed with percentage changes. As of the market close on November 3rd, 2025, the bearish signals on the EUR/GBP chart are hard to overlook. The evening star pattern identified last week often suggests a peak, hinting that the Euro’s recent strength against the Pound may be fading. Consequently, strategies that benefit from a declining EUR/GBP rate should be explored in the next few weeks.

Potential Strategies and Economic Indicators

This technical outlook aligns with the strengthening UK economic data reflected in the revised manufacturing PMI figures for October 2025. Additionally, recent ONS data has shown that UK services inflation remains high at 4.2%, leading the Bank of England to adopt a hawkish stance. A proactive central bank generally supports its currency, giving the Pound a fundamental advantage. Conversely, the Eurozone is facing economic weaknesses, limiting the European Central Bank’s (ECB) aggressive actions. Last month’s disappointing German industrial production, which fell by 0.5% according to Destatis, justifies the ECB’s recent cautious stance on economic growth. For options traders, this scenario may present an opportunity to purchase put options on EUR/GBP, aiming for a move towards the 0.8700 support level. Reflecting on the price movements in mid-2024, we observed a similar situation where the pair fell below key support after a period of stability. Implied volatility for the pair has risen to 6.8% from 5.5% a month ago, indicating that the market anticipates a significant movement. Create your live VT Markets account and start trading now.

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In October, South Africa sold a total of 55,956 new vehicles, up from 54,700 units the month before. This increase shows a positive trend in the automotive market.

Major Currency Movements

Major currencies have shown some changes, with the EUR/USD hovering near three-month lows, despite weak US manufacturing data. The GBP/USD is under pressure, close to its lowest point since April, due to worries about the UK’s financial situation. Gold prices have seen slight improvements, trading above $4,000 per troy ounce. The rising yields of US Treasury bonds seem to be affecting gold’s value. Meme cryptocurrencies like Dogecoin and Shiba Inu have lost value as investor interest wanes. Cardano’s price fell by 6%, trading below $0.58, with increasing short positions suggesting a negative outlook. In this economic climate, investors are cautious about risk, with potential pressures on the US Dollar’s strength from upcoming events. Notably, the Aussie dollar and the Pound are diverging ahead of next week’s central bank meetings.

Anticipated Economic Changes

With a strong US dollar, we expect continued pressure on major currency pairs in the coming weeks. The US ISM Manufacturing PMI for October showed a contraction at 48.7, but the dollar’s strength indicates that traders are more focused on interest rate differences than current manufacturing health. As Fed officials stay neutral about the next meeting, any hawkish remarks could push the dollar higher. We see potential opportunities by focusing on the differences between central banks, especially with the upcoming meetings of the Bank of England and the Reserve Bank of Australia. The pound is struggling around the 1.31 mark, weighed down by the same fiscal concerns that have emerged since the market turmoil in 2022. Using derivatives to bet on continued weakening of the pound against the dollar, like buying puts on GBP/USD, could be beneficial. In emerging markets, the South African economy is showing surprising strength. The new vehicle sales figure of 55,956 for October is a significant increase from about 45,000 units sold in the same month last year. This data suggests strong consumer confidence, positioning the rand to perform well against other commodity currencies like the Aussie dollar. The risk-off sentiment is most noticeable in speculative assets, warning us to be careful. Decreased interest from large investors in meme coins and rising short positions in assets like Cardano indicate a broad exit from high-risk investments. This shift aligns with gold maintaining a price above $4,000, reflecting the significant inflationary pressures we’ve faced in 2024. Looking ahead, volatility will be key, and options strategies may help manage risk around central bank announcements. Using straddles or strangles on GBP/USD and AUD/USD could capture sharp moves after their policy meetings. Additionally, the bearish trends in the crypto market might make shorting crypto futures or buying puts on related stocks worth considering. Create your live VT Markets account and start trading now.

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The US Dollar (USD) may rise above 7.1280 against the Chinese Yuan (CNH), but staying above this level could be tough. Analysts from UOB Group say that for a significant upward move, the USD needs to close above 7.1280, with a possible target of 7.1370. Currently, the upward trend for USD/CNH is slightly increasing. In the next 24 hours, the USD may cross 7.1280, but it might not hold. A drop to 7.1160 or 7.1100 could happen. Over the next one to three weeks, the outlook has changed from negative to neutral. We expect the USD to remain stable between 7.0920 and 7.1280, needing a close above 7.1280 for further gains. As long as 7.1020 is not broken, there is still a chance for the USD to close above 7.1280.

Other Market Updates

In other market news, gold is stuck above $4,000 due to the strength of the US Dollar and cautiousness from the Federal Reserve. The EUR/USD is close to three-month lows, and AUD/USD is down ahead of a Reserve Bank of Australia meeting. Overall, global risk sentiment is cautious due to economic uncertainties. Meme coins like Dogecoin are decreasing in value, and Cardano (ADA) has seen a 6% drop, continuing a bearish trend. Upward momentum for the USD against the CNH is building, but it’s unclear if it will continue. Traders should keep an eye on the 7.1280 level in the coming weeks. A daily close above this would signal a potential move toward 7.1370. Until then, any rise above 7.1280 is likely to be temporary, with crucial support around 7.1020. This view is supported by recent data from China. The Caixin Manufacturing PMI for October 2025 was at 50.1, showing only slight growth and a slowdown from the previous month. This weaker outlook may lead the People’s Bank of China to keep a loose policy, affecting the Yuan. On the other hand, the US Dollar remains strong despite a disappointing ISM Manufacturing PMI reading of 48.7. The market is more focused on the robust US labor market, with the October non-farm payrolls report showing an addition of 210,000 jobs. This difference suggests that the Federal Reserve may keep interest rates higher for longer compared to other countries.

Options Strategy and Currency Pressures

With uncertainty around the key 7.1280 resistance level, a well-defined options strategy could be wise. We suggest considering a bull call spread on USD/CNH, such as buying the 7.1300 call and selling the 7.1400 call. This strategy could help you profit from a potential breakout while limiting costs and losses if the resistance holds. The dollar’s strength is affecting other major currencies, with EUR/USD trading near three-month lows around 1.1520. This policy divergence became clearer in mid-2025, as Eurozone inflation cooled faster than in the US. Recent Eurozone CPI data for October 2025 came in at 2.2%, raising speculation that the European Central Bank might cut rates before the Fed. Gold is also feeling the pressure, struggling to rise above $4,000 per ounce. We recall the strong rally from below $2,000 seen in 2023, driven by inflation fears. Now, in late 2025, high-interest rates make holding non-yielding assets like gold costly, limiting its potential for growth, even amid ongoing geopolitical uncertainties. Create your live VT Markets account and start trading now.

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