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Figma’s IPO starts trading at around $85, raising $1.2 billion and estimating a $19.3 billion valuation
Figma’s IPO started at around $90, with the initial share price set at $33. There was a huge demand, with 40 buyers for every share available. The share began trading at about $85 and reached a high of $93.50.
The IPO raised about $1.2 billion, valuing Figma at $19.3 billion. This value is close to Adobe’s earlier $20 billion acquisition offer. Figma’s expected revenue this year is around $1 billion, with projections of $1.5 billion for next year.
Figma is a cloud-based platform for collaborative UI/UX design, prototyping, and connecting developers. It offers tools like Figma Design for design work and FigJam for brainstorming. Dev Mode links design with code.
At a share price of $85-$90, Figma’s market capitalization is about $50-55 billion, which is 30 times the predicted sales for next year. Other companies with similar public valuations include Workday and TE Connectivity, while private companies like Databricks and Anthropic also match this level.
Figma’s IPO opening near $90 after a $33 price indicates high volatility. The trading halt at $93.50 shows this, meaning options premiums will be very high due to increased implied volatility. For traders, selling options through strategies like covered calls or cash-secured puts could be more appealing than purchasing costly options.
The valuation at nearly 30 times next year’s predicted sales presents a significant premium. Looking back at the tech downturn in 2022 and the software price drops seen in early 2025, companies with high valuations often face declines. This suggests that bearish strategies, like buying put spreads to limit risk, might be wise to guard against a potential price drop.
However, the 40-to-1 oversubscription indicates strong institutional interest that shouldn’t be overlooked. Stocks like Snowflake maintained high valuations for months after their 2020 IPO, supported by strong growth stories. Traders who anticipate this momentum could use bull call spreads to benefit from potential gains while limiting entry costs.
An important event approaching is the IPO lock-up expiration, typically 90 to 180 days after the IPO. This usually means more shares enter the market, which can drive the stock price down. Data from recent tech IPOs in the first half of 2025 showed an average decline of 6% around this time, highlighting a possible trading opportunity.
Given the mix of high valuation and strong demand, we can expect significant price fluctuations. This situation is perfect for volatility-based strategies like long straddles or strangles, which gain from major price movements in either direction. However, the high implied volatility means the stock will need to move significantly for these strategies to be profitable.
Market analysts speculate on a possible rate increase by the BoJ after policy discussions in October.
The USD/JPY exchange rate is getting close to 150.00. This follows comments from the Bank of Japan (BoJ) that suggest they will be careful about raising interest rates. There were earlier hopes for a rate hike in October, but BoJ Governor Ueda made it clear that there’s no hurry to tighten monetary policy.
The BoJ’s recent outlook report highlights uncertainties. It notes higher CPI inflation estimates but also predicts slower economic growth in Japan due to both global and local factors. Right now, the USD/JPY pair, which fell during Asian trading hours, is climbing again towards the 150.00 level.
Currency Market Sentiment
The USD/JPY has not crossed 150.00 since April, when U.S. tariffs impacted feelings in the market. Although the USD has struggled this year, it has recently become the strongest currency among the G10. This reflects a shift back to U.S. assets after a recent period of selling. Analysts have revised the 1-month forecast for USD/JPY to 148.00. If the current views on BoJ rate hikes remain unchanged, they expect USD/JPY to stabilize around 145.00 in three months. A surge in short-covering has helped the USD, leading to these new forecasts. As of today, July 31, 2025, the USD/JPY is nearing the 150 level, largely due to the significant gap in interest rates. The U.S. Federal Funds Rate is above 5%, while the BoJ’s rate is just above zero. This gap makes it beneficial to hold dollars instead of yen, boosting the carry trade. The BoJ is hesitant to act due to Japan’s economic data. For instance, July’s Tokyo Core CPI inflation was 2.8%, but Japan’s GDP shrank by 0.2% in the second quarter. This weak growth gives the BoJ good reasons to keep rates low and avoid harming the economy.Risks of Government Intervention
However, we should stay alert for possible action from Japanese officials as we approach the 150 mark. Many recall the Ministry of Finance’s direct intervention in the currency market during fall 2022, and their strong warnings in 2024 to support the yen. This history suggests that buying USD/JPY aggressively above 150 could be risky, as authorities might intervene at any moment. For those trading derivatives, buying call options might be a smarter choice than purchasing the currency pair directly. Call options allow you to profit if USD/JPY rises while limiting your losses to the premium paid if the government steps in and the rate drops sharply. Rising implied volatility shows the real risk of a sudden policy shift from Tokyo. Looking ahead, the easiest direction for USD/JPY seems to be upward, especially as traders who short the dollar buy back their positions. Still, we should keep in mind the three-month forecast of 145.00, indicating that the market expects either a policy change or a weaker U.S. economy later this year. This suggests that while there may be short-term profits, preparing bearish positions for autumn with put options could also be a wise strategy. Create your live VT Markets account and start trading now.Core PCE inflation in the US stays at 2.8% as annual inflation rises to 2.6%
The core PCE inflation in the US stayed steady at 2.8% in June, matching last month’s rate. This is higher than what analysts expected, which was 2.7%.
The overall PCE Price Index rose to 2.6% in June, up from a revised 2.4% in May. This increase was greater than the predicted 2.5%.
Month On Month Data
Both the PCE Price Index and its core version went up by 0.3% from the previous month. Personal Income and Spending also grew by 0.3% in June. After the data came out, the US Dollar Index remained stable, trading around 99.90. The US dollar showed strength against the euro but fluctuated against other major currencies. Knowing inflation metrics like PCE and CPI is essential for economic analysis. Inflation affects a currency’s value. Generally, higher inflation leads central banks to raise interest rates, which can strengthen the currency by attracting more investment. On the other hand, inflation impacts gold prices by influencing interest rates. High rates can make gold less attractive compared to assets that earn interest, while lower rates can boost its appeal.Fed Policy And Market Impact
With June’s inflation data in hand, it’s likely the Federal Reserve will continue its “higher for longer” approach to interest rates. The core PCE staying at 2.8% makes a rate cut unlikely in the near future. According to the CME FedWatch Tool, the market has mostly eliminated the chance of a rate cut at the September 2025 meeting, with the likelihood of holding rates climbing to over 90%. This supports our belief that the US dollar will remain strong, particularly against currencies from central banks that are less aggressive. Recent manufacturing PMI data from Germany showed a contraction at 48.5 earlier this month, indicating that the European Central Bank may need to consider easing its policies sooner than the Fed. We see potential in buying call options on the US dollar or put options on the EUR/USD pair to take advantage of this difference. The outlook for gold isn’t as bright since it doesn’t yield returns. With the 10-year Treasury yield holding steady above 4.1% after this report, the cost of holding gold has risen. We observed a similar trend in late 2023 when ongoing inflation kept rates high, putting pressure on gold prices. This situation creates uncertainty for equity indexes, which could lead to volatility in the coming weeks. While strong consumer spending is good for corporate earnings, the expectation of continued high interest rates could hinder company valuations. The CBOE Volatility Index, or VIX, has been around a low of 14, indicating that the market might be underestimating the risk of a significant change following the next major economic data release. Create your live VT Markets account and start trading now.The White House press secretary announced new tariffs will be implemented soon after correspondence.
New reciprocal tariffs will take effect on Friday. Countries that haven’t received notifications about these tariffs will get an Executive Order or a letter by tonight.
Recent talks have been fruitful, especially with South Korea. We are also making progress in discussions with China, maintaining direct communication with their representatives.
Preparing for Market Volatility
With these new tariffs coming this Friday, we expect market volatility to rise sharply. This uncertainty usually increases the VIX, so we plan to buy August VIX call options to protect ourselves. The VIX has been relatively stable around 15 for the past month, making options affordable before the news hits. We need to pinpoint the sectors most vulnerable to these new trade barriers. Companies in the industrial and technology sectors, especially those with complex global supply chains, face the highest risk of decreased profits. Considering put options on ETFs like XLI or semiconductor funds in the coming weeks could help safeguard against a sudden market drop. The mixed signals regarding China—suggesting both progress and new tariffs—make the situation unclear. This could lead to a significant shift in Chinese equities once the details of the tariffs are unveiled. A straddle on an ETF like FXI would enable us to benefit from any large price change, regardless of whether it goes up or down.Possible Effects on Asian Markets
Positive news with South Korea positions them as a likely winner in this scenario. We could consider a pair trade, going long on the South Korean market through the EWY ETF while shorting an index of other Asian markets that might face new limits. We should keep an eye on the Korean won for strength relative to other regional currencies. This news comes at a sensitive time for the broader economy, as recent data for Q2 2025 shows US GDP growth slowing to just 1.6%. The trade disputes of 2018 and 2019 led to a similar economic slowdown. Tariffs act like a tax on businesses and consumers, which could jeopardize the fragile growth we’ve seen since inflation eased in 2024. Create your live VT Markets account and start trading now.Trump warns 17 pharmaceutical companies to lower drug prices and follow international pricing deadlines
President Trump has called on 17 pharmaceutical companies to lower drug prices in the U.S., which are reportedly higher than those in other developed countries. A new Executive Order aims to enforce Most-Favored-Nation (MFN) drug pricing for Americans, targeting Medicaid and newly launched drugs.
The administration believes that lower drug prices internationally should benefit U.S. citizens. Companies must comply with these pricing guidelines by September 29, 2025. If they don’t, the administration will take action against what they describe as unfair pricing practices.
Key Demands and Compliance
The main demands include applying MFN pricing to Medicaid so that drug prices reflect the lowest rates globally. Newly launched drugs should also have MFN pricing across Medicare, Medicaid, and private insurance. Excess profits made abroad should be used to help American patients and taxpayers. The U.S. government intends to buy high-volume prescriptions at the same lower prices available internationally. Pharmaceutical companies, including Eli Lilly, Sanofi, Regeneron, Merck, AstraZeneca, GSK, Pfizer, Novo Nordisk, Amgen, Bristol Myers, AbbVie, Novartis, Gilead Science, Boehringer Ingelheim, and EMD Serono, have received notices about these requirements and the approaching deadlines. With this clear warning to 17 major drugmakers, we should expect increased uncertainty in the pharmaceutical sector. This could offer opportunities for derivative traders, especially for stocks like Eli Lilly, Pfizer, and Merck. The tight deadline of September 29, 2025, is likely to increase market anxiety in the coming weeks. Traders should consider protective put options for these specific stocks. This strategy will help safeguard against potential price drops if the market thinks these companies will have to reduce U.S. revenue. The market’s response to drug pricing talks under the Inflation Reduction Act in 2023 and 2024 showed significant challenges for the sector.Market Reaction and Strategic Insights
The threat to drug prices is credible since U.S. prices are demonstrably higher than in other countries. A recent RAND Corporation study showed that U.S. prices for brand-name drugs were, on average, 2.78 times higher than in similar OECD countries. This data supports the administration’s tough stance. Considering that the U.S. market accounts for over 50% of pharmaceutical profits for many companies, any forced price cuts could hurt their profits. Demanding MFN pricing for Medicaid would have an immediate financial impact. Therefore, we expect the market to factor in this risk before the September deadline. Traders should look for option contracts that expire after September 29 to capture the full outcome of this situation. Contracts with expirations in October and November 2025 will be particularly important, as they will show either relief from a resolution or consequences from government actions. We anticipate that implied volatility will peak in the last weeks of September. This political pressure affects the entire sector, not just the 17 companies mentioned. Traders can also use derivatives on ETFs like the Health Care Select Sector SPDR Fund (XLV) to take advantage of broader market trends. Taking a bearish position on the sector index may be a smart way to reduce risks associated with specific company responses. Create your live VT Markets account and start trading now.New unemployment insurance applications in the US increased slightly to 218K, according to the DOL.
Initial jobless claims in the US slightly increased to 218,000 for the week ending July 26, up from 217,000 the week before. This number is lower than the initial estimate of 224,000 from the US Department of Labor.
The report indicated a seasonally adjusted unemployment rate of 1.3%. The four-week moving average dropped by 3,500 to 221,000 compared to the previous week’s average.
Continuing Jobless Claims
Continuing jobless claims stayed the same at 1.946 million for the week ending July 19, after a revision decreased the count by 9,000. This affected the US Dollar Index, which hovered around 99.80. Employment levels directly affect currency value; more jobs boost consumer spending and economic growth, which strengthen the local currency. A tight labor market may also influence inflation, as high demand for workers leads to rising wages. Wage growth is vital for policymakers because it can raise prices for consumer goods and contribute to inflation. Central banks are attentive to employment trends, with some, like the US Federal Reserve, balancing labor market health with inflation control.Economic Resilience And Interest Rates
The recent jobless claims data shows the labor market remains strong. At 218,000, these numbers are below expectations, indicating economic resilience. This challenges the idea that the economy is rapidly cooling as we move into August 2025. As a result, the Federal Reserve may feel less pressure to cut interest rates soon. A robust job market supports consumer spending and can help keep inflation steady. Therefore, we should be ready for interest rates to stay high longer than initially thought. Historically, these jobless figures are very low, similar to the tight labor market conditions of 2019, when claims often hovered around 215,000. With the national unemployment rate below 4.0% in the first half of 2025, the data suggests sustained full employment. This stands in contrast to times of economic concern, like mid-2023, when initial claims spiked above 260,000. In light of this, we are cautious about investments betting on falling interest rates. This may involve reducing long positions in SOFR futures or exploring options that benefit if Treasury yields remain stable. The market may need to adjust expectations about interest rate cuts later this year. This climate is also favorable for the US Dollar, which gains strength when our interest rates are higher than those of other countries. We see value in strategies like buying call options on the US Dollar Index (DXY), which currently fluctuates around the 99.80 mark. This could be a smart move if other central banks begin cutting rates before the Fed does. For equity markets, the outlook is mixed, leading to potential volatility. A strong economy can boost corporate earnings, but high interest rates may pressure stock valuations. We think using derivatives, like VIX futures or straddles on the S&P 500, could be wise in the coming weeks. Looking ahead, our attention will turn to the upcoming Consumer Price Index (CPI) report. This inflation data will be crucial in determining if the strength in the labor market translates into rising prices. The Fed’s next statement will be scrutinized for any shifts in tone based on this information. Create your live VT Markets account and start trading now.GBP/USD rises above mid-1.3200s during European trading as USD weakens
Pound Sterling is falling close to 1.3200 against the US Dollar during the European trading session on Thursday. This is the sixth day in a row of losses, driven by the US Dollar Index, which reached a two-month high of about 100.00 on Wednesday.
However, the GBP/USD pair is gaining some ground in the Asian session on Thursday. It has partially recovered from the low of the previous day and is trading just above the mid-1.3200s. Still, caution is necessary regarding its chances for a significant recovery.
Pound Sterling Outlook
The Pound Sterling might weaken further, likely moving within a lower range of 1.3210 to 1.3310. The important level to watch next is May’s low of 1.3140, as strong downward pressure continues. All provided information is for reference only. Readers should do thorough research before making any investment choices since there are risks involved, including potential total loss of principal. This article does not provide personalized recommendations and should not be considered investment advice. The Pound Sterling is testing the 1.3200 level against the US Dollar after six straight days of decline. This pressure stems from the US Dollar Index reaching a two-month high above 100.00. The dollar’s strength is driven by recent data indicating a more resilient US economy, especially the strong jobs report for June 2025, which showed over 250,000 new jobs were added. In addition, the latest data from the Office for National Statistics revealed that UK GDP grew only 0.1% in the second quarter of 2025. The Bank of England kept interest rates unchanged at its last meeting but expressed a more cautious stance, increasing market expectations for a rate cut by the end of the year. This difference in policy with the still-hawkish US Federal Reserve is significantly affecting the currency.Trading Strategies
Due to the strong downward momentum, we recommend that traders consider bearish strategies in the coming weeks. Buying put options on GBP/USD could be an effective way to take advantage of further declines while managing risk. These options will increase in value if the pair drops below the strike price before they expire. The immediate focus is on the May 2025 low of 1.3140, which serves as a crucial support level. A decisive fall below this level could lead to testing the 1.3000 psychological barrier, a mark not seen since the volatility of late 2024. Historically, the pair has dropped quickly during the rate-hiking cycles of 2023, suggesting that these levels can be reached swiftly once momentum builds. Traders should also prepare for increased currency volatility, especially with upcoming inflation reports from both the UK and the US in August. For those uncertain about the direction but anticipating significant movement, considering a strangle strategy may be beneficial. This involves buying both an out-of-the-money put and an out-of-the-money call to benefit from a substantial price swing in either direction. Create your live VT Markets account and start trading now.Japan seeks a 15% tariff rate on US chips to match the EU’s rate
Japan is looking to set a 15% tariff on American chips, matching the rate used by the European Union. Akazawa, Japan’s trade negotiator, is confident that Japan can secure this tariff rate for the potential duties that the US plans to impose on chips.
This proposed 15% tariff on US chips adds uncertainty to the semiconductor industry. It would directly impact the profits of American chip exports to Japan, a crucial market. According to the Semiconductor Industry Association, exports to Japan made up nearly $12 billion in Q2 2025, which highlights the financial risk involved in this situation.
Trade And Market Strategies
We advise traders to prepare for more fluctuations in major US tech stocks such as NVIDIA, Intel, and AMD in the coming weeks. A good strategy might involve using options to benefit from the price changes as news from the negotiations develops. Looking back at the tariff announcements from 2018, we saw the Philadelphia Semiconductor Index (SOX) experience significant daily swings, which might happen again now. Given that a 15% tariff is likely, buying protective put options on tech-heavy indexes like the Nasdaq 100 or on specific chipmakers can help guard against negative developments. If the US considers a higher rate than 15% or if negotiations falter, it could lead to a sell-off. This cautious approach seems wise until there is an official agreement. In Japan, this tariff news may put pressure on companies that import and depend on high-performance American chips, particularly in the automotive and gaming sectors. For instance, Toyota’s earnings call in May 2025 pointed out its increasing reliance on US chips for autonomous driving technology. This tariff could boost domestic chip makers like Renesas Electronics, making them more competitive.Currency Market Implications
The currency market, especially the USD/JPY exchange rate, will also be crucial to monitor. Higher import costs for Japan’s manufacturing sector could weaken the yen further. The yen has already dropped below 150 per dollar this month, and the confirmation of this new tariff could push it down even more. Create your live VT Markets account and start trading now.USDJPY rises above April’s high, aiming for 151.198 to 151.33 while maintaining bullish control
The USDJPY has reached an intraday high of 150.79, breaking the previous swing high of 150.48 from April 3. This shows a strong upward trend. The next target zone is between 151.198 and 151.33, followed by a key level at 151.616, which is the 61.8% retracement of the 2025 decline.
Earlier, the pair moved above the 200-day moving average at 149.53 and the 50% midpoint of the 2025 trading range at 149.375. These levels are now important support zones, with prices comfortably above them. This indicates strong upward momentum, with buyers firmly in control.
Divergence In Central Bank Policy
The recent surge in USDJPY above 150.50 is largely due to differing central bank policies. The US Federal Reserve’s recent statements indicate a hawkish approach, while the Bank of Japan has confirmed its commitment to accommodative policies just two weeks ago. This difference suggests that the path ahead for the USDJPY is likely to continue upward. For derivatives traders, buying call options is a direct way to take advantage of this bullish movement. There has been a noticeable rise in open interest for call options set for August and September, particularly at strike prices of 151.50 and 152.00. This strategy allows traders to profit from a price increase while limiting their maximum risk. However, we should keep in mind the sharp reversals from late 2022, when the Japanese Ministry of Finance intervened to support the yen near the 151.90 level. As we near the target zone between 151.20 and 151.60, the likelihood of either verbal or direct intervention rises significantly. Traders should brace for increased volatility and sudden price pullbacks.Reinforced Bullish View
Recent data supports our bullish outlook. The US Non-Farm Payrolls report from early July 2025 showed an impressive addition of 250,000 jobs. In contrast, Japan’s recent Q2 GDP figures indicated a slight contraction, giving the authorities little reason to shift away from their weak yen strategy. Implied volatility in the options market has already increased by 15% this month, making strategies like bull call spreads wise for managing rising option premiums. Our positive outlook persists as long as the price stays above the support zone between 149.37 and 149.53. A drop below this area, which includes the 200-day moving average, would signal that the strong upward trend is weakening. For now, these levels provide a solid base for the current rally. Create your live VT Markets account and start trading now.Canada’s GDP decreased by 0.1% in May, as expected.
Canada’s Gross Domestic Product (GDP) for May met expectations with a slight 0.1% decrease from the previous month. This shows that market predictions for the Canadian economy are stable.
In other market news, the EUR/USD is gaining traction and nearing the 1.1450 level. The GBP/USD has seen some ups and downs but has settled back above 1.3200 after dropping to around 1.3180.
