Construction output in the Eurozone decreased sharply year-on-year, falling from 3.2% in July to 0.1% in August. This substantial drop indicates a challenging period for the construction industry within the Eurozone.<\/p>\n
In foreign exchange markets, the EUR\/USD pair stabilised around 1.1650, supported by a positive mood despite France’s credit rating downgrade by S&P Global Ratings. GBP\/USD traded cautiously near 1.3400, impacted by a firm US Dollar and anticipation of upcoming UK inflation data.<\/p>\n
Meanwhile, in commodity markets, Gold recovered to over $4,300 after an earlier correction to approximately $4,200. The precious metal’s attractiveness was supported by uncertainties in US-China trade relations and expectations of a dovish stance from the Federal Reserve.<\/p>\n
Cardano (ADA) price experienced a correction, decreasing nearly 7% over the previous week. Traders’ confidence appeared to weaken, evidenced by the decline in Open Interest to a yearly low and a rise in short positions.<\/p>\n
The near-collapse in Eurozone construction growth, plummeting from 3.2% to just 0.1% year-on-year, signals a sharp economic downturn. This is a clear indicator of weakening demand across the continent, prompting us to reconsider long positions on European assets. We are now looking at options strategies that profit from increased volatility or a continued decline in European equity indices like the DAX and CAC 40.<\/p>\n
The weakness is not isolated, as recent data from Destatis showed German industrial production unexpectedly fell by 1.8% in September 2025. This confirms the slowdown in the Eurozone’s core economy, putting further pressure on the euro. Consequently, we see the current stability in EUR\/USD around 1.1650 as a potential opportunity to build short positions.<\/p>\n
S&P’s credit rating downgrade for France to A+ earlier this month continues to weigh on the single currency. This has already increased borrowing costs for Paris, with the spread between French and German 10-year bonds widening by 15 basis points since the announcement. Any rally in the EUR\/USD is likely to be met with selling pressure as the fundamental picture deteriorates.<\/p>\n
We are also bracing for volatility in the British Pound ahead of this week’s UK inflation data. With the September 2025 CPI data showing core inflation remaining sticky at 3.1%, another high reading could force the Bank of England\u2019s hand. Traders should consider straddles or strangles on GBP\/USD to trade the potential sharp move, regardless of the direction.<\/p>\n
Amid the uncertainty in Europe and ongoing US-China trade tensions, gold is reasserting itself as a key safe-haven asset. Its climb back above $4,300 is directly tied to growing expectations of a dovish pivot from the Federal Reserve. The CME FedWatch tool now shows a 70% probability that the Fed will hold rates steady at its November 2025 meeting.<\/p>\n
This risk-off sentiment is also spilling into more speculative markets like cryptocurrencies. The recent 7% correction in Cardano is telling, as derivatives data shows open interest has fallen to a yearly low while short bets are surging. We interpret this as capital fleeing high-risk assets, suggesting further downside for the broader crypto market in the coming weeks.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Eurozone construction declines sharply; EUR\/USD steady; gold rebounds; Cardano drops with weakening trader confidence.<\/p>\n","protected":false},"author":62,"featured_media":16973,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-32651","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\/32651","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=32651"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/32651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16973"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=32651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=32651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=32651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}