The United States Consumer Price Index (CPI) year-on-year rate was recorded at 2.7% for July, slightly lower than the anticipated 2.8%. This data point is part of the ongoing economic analysis providing insights into inflation trends within the US economy.<\/p>\n
In the currency markets, EUR\/USD approached a two-week high near 1.1700, influenced by a weakening US Dollar and expectations of potential Federal Reserve rate cuts. Similarly, GBP\/USD reached three-week highs around 1.3530 amid similar economic pressures on the dollar.<\/p>\n
In the commodities sector, gold prices recovered from lows, rising above $3,350 per troy ounce, buoyed by downward pressure on the US Dollar and varied US yield trends. Meanwhile, Pi Network experienced a retracement under $0.4000, indicating a bearish outlook due to reduced trading volume and the prospect of a further 10% correction.<\/p>\n
In a dramatic move, the Bank of England reduced interest rates by 25 basis points to 4%, while expressing concerns over inflation remaining above target levels. Traders and analysts continue to assess this development for future economic impacts.<\/p>\n
With the latest US inflation data for July 2025 coming in softer than expected at 2.7%, we believe the Federal Reserve has a clearer path to cut interest rates. This reinforces our view of a weaker US Dollar in the coming weeks. Based on market data, the probability of a rate cut at the September Fed meeting has now jumped to over 75%, a significant shift from just a month ago.<\/p>\n
We see the move in EUR\/USD towards 1.1700 as the beginning of a larger trend, driven by diverging central bank policies. The European Central Bank held its own policy rate firm at 3.5% during its last meeting, creating a favorable interest rate differential for the euro. We are considering buying call options on EUR\/USD with a target strike price of 1.1850 expiring in October.<\/p>\n
The situation with the British Pound is more complex, as the Bank of England just cut its rate to 4% to stimulate a sluggish economy. However, the US Dollar’s weakness is currently the stronger force, pushing GBP\/USD to its recent highs near 1.3530. We feel this is a fragile rally, as UK core inflation remains stubbornly high at 3.8%, and we should use options to define our risk carefully.<\/p>\n
Gold\u2019s climb above $3,350 per ounce is a direct response to falling US yields and a weaker dollar, a pattern we also observed during the policy pivot of late 2023. Historically, gold performs well when real yields turn negative, which is the environment we are now entering. We are positioning for this by adding to long positions in gold futures contracts.<\/p>\n
For more speculative assets, the bearish outlook for Pi Network below $0.4000 is supported by its low trading volume. On-chain data confirms a drop in active wallets, suggesting retail interest is fading quickly. This technical weakness suggests buying put options or establishing short positions, as a further drop towards $0.3500 seems likely.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US CPI eases to 2.7%, boosting gold and currencies; BOE cuts rates amid inflation worries.<\/p>\n","protected":false},"author":62,"featured_media":17021,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-28889","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\/28889","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=28889"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/28889\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17021"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=28889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=28889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=28889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}