In June, Canada’s industrial product price increased by 0.4% month-on-month, surpassing the anticipated rise of 0.1%. This demonstrates stronger pricing trends in Canadian industrial products than initially expected.<\/p>\n
The AUD\/USD experienced a rebound, moving above the 0.6500 mark due to a sell-off in the US Dollar. Similarly, EUR\/USD rose above the 1.1700 level as the US Dollar weakened amid trade concerns and speculation about the Federal Reserve’s independence.<\/p>\n
Gold prices surged past $3,400 per troy ounce, finding support from weaker US yields and a soft US Dollar. Meanwhile, Ripple (XRP) is approaching its all-time high, driven by institutional demand and increased market activity.<\/p>\n
China’s GDP grew by 5.2% year-on-year in the second quarter, supported by robust trade and industrial activity. However, slowdowns in investment, retail sales, and declining property prices remain areas of caution for the economy.<\/p>\n
Given the stronger-than-expected industrial pricing, we see potential for persistent inflation in Canada. The most recent Consumer Price Index reading of 2.9% already supports this view. We believe this strengthens the case for call options on the Canadian dollar, as the central bank may be forced to maintain a hawkish stance longer than its peers.<\/p>\n
The broad weakness in the U.S. dollar, which saw the Dollar Index (DXY) dip below 105, presents a clear opportunity in the forex market. The rebound in the Australian and European currencies is a direct result of this trend. We are therefore considering put options on the U.S. dollar or call options on these major currency pairs to ride this momentum.<\/p>\n
We see the surge in precious metals, which recently hit a record high above $2,400 per ounce, as a direct hedge against a softer greenback and lower yields. Long-dated futures contracts on the commodity offer a way to capitalize on this ongoing safe-haven demand. Regarding the specific digital asset mentioned, it remains significantly below its 2018 peak, making options that capitalize on its high volatility a more prudent strategy than betting on new highs.<\/p>\n
China\u2019s latest Caixin Manufacturing PMI reading of 51.7 confirms the industrial strength highlighted in the growth figures. However, the persistent weakness in the property market and sluggish consumer spending create a divided economic picture. This leads us to explore pairs trades, such as going long on industrial commodities that benefit from exports while remaining cautious on assets tied to internal consumption.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold surges past $3,400; AUD\/USD and EUR\/USD rise on weaker US Dollar, strong China GDP supports.<\/p>\n","protected":false},"author":62,"featured_media":16963,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-26900","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-ca\/wp-json\/wp\/v2\/posts\/26900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=26900"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/26900\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16963"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=26900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=26900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=26900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}