In July, the United States ISM Manufacturing New Orders Index rose to 47.1 from 46.4 the previous month. This indicates a moderate improvement in the manufacturing sector.<\/p>\n
The performance of the US Dollar remains under pressure, evident as EUR\/USD surged above 1.1550 following the weak employment and PMI data. GBP\/USD also trades positively, recovering past 1.3250, aided by the same data.<\/p>\n
Gold saw gains, reaching weekly highs around $3,350. A decrease in US Treasury bond yields contributed to this upward movement, as markets reconsider the Federal Reserve’s rate outlook.<\/p>\n
Cryptocurrency markets faced challenges after a strong July performance, with Bitcoin dropping below $115,000. Meanwhile, the euro area’s economy displayed resilience, supported by recent EU-US agreements and increased spending in Germany.<\/p>\n
Information and recommendations on these financial markets are for informational purposes and are not a call to action. Thorough research and professional consultations are advised before making investment decisions, as risks and losses are personal responsibilities.<\/p>\n
Given the weak US employment data from this morning, August 1st, 2025, the slight rise in the ISM New Orders index for July seems less significant. The report of only 95,000 new jobs, far below expectations, confirms a broader economic slowdown. We should therefore view the manufacturing improvement with caution, as it conflicts with the more current and impactful jobs numbers.<\/p>\n
The US Dollar’s decline is likely to accelerate, making derivative plays against it attractive in the coming weeks. With EUR\/USD pushing past 1.1550 and positive data coming from Germany, buying call options on the euro appears to be a logical response. We see this as a clear divergence trade, favoring European assets over American ones for now.<\/p>\n
Gold\u2019s rally to $3,350 is directly tied to the fall in US Treasury yields, which dipped below 2.9% following today\u2019s poor jobs report. This market reaction suggests a strong belief that the Federal Reserve will have to pause its tightening cycle. We should consider long positions in gold derivatives, as the metal benefits when interest rate expectations fall.<\/p>\n
The recent drop in Bitcoin below $115,000 shows a potential decoupling from assets like gold, even with a weaker dollar. After a powerful rally in July, the crypto market appears to be in a profit-taking phase and may not be a safe haven right now. We believe traders should be cautious here, perhaps using put options to hedge against further declines.<\/p>\n
This situation feels similar to what we observed in 2019, when weakening US economic indicators also led to a weaker dollar and a surge in gold prices. Based on that historical pattern, strategies that bet on continued US economic weakness could be favorable. This includes looking at options that benefit from a falling S&P 500 or a rising CBOE Volatility Index (VIX).<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US data lifts EUR\/USD above 1.1550; gold rises on lower yields; Bitcoin dips below $115,000.<\/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-27968","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\/27968","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=27968"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/27968\/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=27968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=27968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=27968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}