Forex trading on margin poses significant risks, necessitating careful personal assessment of financial goals and experience. Individuals should only invest funds they can afford to lose, as the leverage in foreign exchange trading can increase the risk of losses.<\/p>\n
Given the recent weak US employment and PMI data, we believe the dollar will face headwinds in the coming weeks. The July Non-Farm Payrolls report, adding only 85,000 jobs against a forecast of 190,000, confirms this slowdown. This environment makes shorting the dollar against other currencies an attractive strategy.<\/p>\n
We see continued strength in the Euro and the British Pound against the dollar. The rally in EUR\/USD above 1.1550 and GBP\/USD past 1.3250 is a direct result of this dollar weakness. Traders could consider using options, like buying calls on these pairs, to capitalize on further upward movement.<\/p>\n
Gold is shining as US Treasury yields fall, with the 10-year yield now near 3.10%. With the market now pricing in a lower probability of a Fed rate hike this year, gold at $3,350 becomes very appealing. This mirrors the pattern we observed in the early 2020s when expectations of monetary easing boosted precious metals.<\/p>\n
While Eurozone economic forecasts look positive, we must watch the European Central Bank closely. The latest inflation reading for July 2025 cooled to 1.8%, falling below the ECB’s target for the first time in over a year. This could lead to a surprise rate cut later in the year, introducing volatility for EUR-based trades.<\/p>\n
The slip in Singapore’s manufacturing PMI to 49.9 is a warning sign for Asian markets. This reflects a broader regional slowdown, with similar softness seen in recent trade data from South Korea and Taiwan. We would be cautious about long positions on Asian equity indices in the near term.<\/p>\n
In the crypto space, we are seeing signs of a pullback after a strong July. Bitcoin falling below $115,000 is significant, and the 15% drop in futures open interest suggests traders are taking profits. This may be a good time to consider protective puts or wait for a clearer support level before entering new long positions.<\/p>\n
With these mixed signals, managing risk is more important than ever. The high leverage in forex and derivatives can amplify losses just as quickly as gains. We must only trade with capital we are prepared to lose and use stop-loss orders to protect our positions.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Singapore\u2019s manufacturing contracts; euro, pound rally on weak US data; bitcoin falls; gold prices climb.<\/p>\n","protected":false},"author":62,"featured_media":16961,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-27953","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\/27953","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=27953"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27953\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16961"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=27953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=27953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=27953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}