The CFTC oil NC net positions in the United States have increased to 78.8k from a previous 58.1k. <\/p>\n
The EUR\/USD has soared above 1.1800, whereas the USD\/JPY has slumped to multi-week lows. Concurrently, the GBP\/USD has surged to 1.3600, reaching four-month highs, while gold prices approach the $5,000 mark. <\/p>\n
UBS Group AG is considering offering cryptocurrency investment services, including Bitcoin and Ethereum, to select private clients in Switzerland. Moreover, Bitcoin struggled below $90,000, correcting about 5% this week amidst market volatility. <\/p>\n
In the coming week, meetings from the Fed and BoC are anticipated amidst geopolitical changes and Trump’s Fed chair nomination. It’s likely the Fed will pause after three rate cuts, with the BoC expected to maintain its current stance. <\/p>\n
The FXStreet page contains various legal disclaimers, reminding individuals about the risks and uncertainties involved in the market. It advises readers to perform thorough research before making financial decisions, as no investment advice is provided, and all associated risks are borne by the investor.<\/p>\n
The recent jump in speculative net long oil positions to 78,800 contracts is a strong bullish signal that we cannot ignore. This sentiment, combined with a crashing US Dollar, creates a powerful tailwind for crude prices. Recent Energy Information Administration (EIA) data showing a surprise inventory draw of 2.1 million barrels further solidifies the case for positioning for higher prices through instruments like WTI call options.<\/p>\n
The US Dollar’s sharp decline to four-month lows is the dominant theme, and we expect this to continue in the immediate term. With the Federal Reserve on pause after a series of rate cuts in 2025, and rumors of Japanese intervention reminiscent of what we saw back in 2022, the path of least resistance for the greenback is lower. Traders should consider buying puts on the Dollar Index (DXY) as it tests the 98.50 support level, or buying call options on EUR\/USD and GBP\/USD.<\/p>\n
This dollar weakness is directly fueling the rally in precious metals, with gold now approaching the critical $5,000 level. The inverse correlation between gold and the DXY has been extremely strong, running at -0.7 over the last quarter. We see value in buying call spreads on gold futures to target a move through this psychological barrier while defining risk.<\/p>\n
The broader market is showing a strong risk-on appetite, spurred by the de-escalation of trade tensions. While this environment is supportive of equities, the speed of the dollar’s fall introduces instability. With the VIX, a measure of expected market volatility, currently suppressed near 13.5, it is a relatively cheap time to buy protective puts on stock indices as a hedge against this currency-driven rally becoming disorderly.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Oil net positions rise; euro, pound surge; Bitcoin slips; Fed, BoC policy decisions eyed amid volatility.<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40047","post","type-post","status-publish","format-standard","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\/40047","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=40047"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40047\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}