Canada’s Gross Domestic Product (GDP) for May matched expectations, showing a 0.1% decrease month-on-month. This figure indicates stability in market predictions for the Canadian economy during this period.<\/p>\n
In related market movements, the EUR\/USD has gathered momentum, approaching the 1.1450 mark. Meanwhile, the GBP\/USD has experienced fluctuations, settling again over 1.3200 following a drop to the 1.3180 zone.<\/p>\n
Gold, facing a selling trend, has struggled to surpass the $3,300 level per troy ounce. The precious metal’s performance aligns with reducing US yields and minimal declines in the US Dollar.<\/p>\n
Bitcoin’s price remains within a $116,000-$120,000 range across sixteen days, supported by ongoing whale purchasing. OTC balances have dipped to unprecedented lows, bolstered by a new deal between JPMorgan and Coinbase linking banking and crypto wallets.<\/p>\n
The FOMC is undecided on the effects of tariff risks on labour markets versus inflationary pressures. The ongoing debate continues to shape monetary policy decisions in the US.<\/p>\n
Given Canada’s GDP contraction in May, we believe volatility in the Canadian dollar will remain low. This slight 0.1% dip was expected and contrasts with the modest 0.2% average monthly growth we saw throughout the latter half of 2024. Therefore, selling options to collect premium on currency pairs like the USD\/CAD could be a prudent strategy in the coming weeks.<\/p>\n
We are watching the EUR\/USD closely as it tests the 1.1450 level. The Euro’s strength seems linked to the ECB’s hawkish tone from their July 10th, 2025, meeting, which signaled a tougher inflation stance than the Fed. Traders might consider buying call options to position for a potential breakout above this key resistance.<\/p>\n
The British pound’s recent fluctuations above 1.3200 point to continued choppiness ahead. Unexpectedly high UK inflation data for June 2025, which came in at 3.5%, is fueling this uncertainty about the Bank of England’s next move. This environment is ideal for volatility strategies, such as buying a straddle, which profits from a significant price swing in either direction.<\/p>\n
Gold’s inability to break $3,300 suggests the metal is losing steam after its run-up earlier in the year. With the 10-year US Treasury yield holding steady around 3.8%, the appeal of non-yielding gold is diminishing. We see this as an opportunity to sell out-of-the-money call options against the $3,300 strike price, betting that it will act as a ceiling.<\/p>\n
The tight coiling of Bitcoin’s price between $116,000 and $120,000 suggests a major move is imminent. Looking back, this quiet period follows the explosive rally after the 2024 halving, and derivative data shows implied volatility is now at a six-month low. A long strangle, buying both a call and a put option, could capitalize on the breakout when it occurs.<\/p>\n
The Federal Reserve’s indecision creates a tense backdrop for the market, making every new piece of data critical. We are looking ahead to the US jobs report for July, which is due on August 8th, 2025, as the next major catalyst. To prepare, we are advising traders to consider protective measures like buying VIX call options to hedge against any sudden market downturns.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Canada\u2019s GDP drops 0.1%; EUR\/USD gains; Gold struggles; Bitcoin stable amid whale buying; FOMC debates.<\/p>\n","protected":false},"author":62,"featured_media":17028,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-27829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/27829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=27829"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/27829\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17028"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=27829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=27829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=27829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}