The United States ISM Services New Orders Index dropped to 50.3 in July, down from 51.3 previously. This decline indicates a slowdown in new orders for the services sector.<\/p>\n
The EUR\/USD saw firm support around the 1.1400 mark, as the USD extended its gains. Meanwhile, gold prices maintained their upward bias, hovering close to the $3,400 mark per troy ounce.<\/p>\n
In the cryptocurrency market, Ethereum struggled to maintain levels above $3,700 due to large outflows in ETH ETFs. Despite this, corporate acquisitions of Ethereum continued, with SharpLink Gaming recently acquiring over 83,000 ETH.<\/p>\n
The euro area economy demonstrated resilience during the summer period. The landscape has been improved by an EU-US agreement and planned increases in German spending. Despite this, economic risks are leaning toward a potential cut in late 2025 or early 2026. <\/p>\n
Those trading currency pairs such as the EUR\/USD in 2025 have a variety of brokers to consider. These brokers offer competitive spreads and fast execution, ensuring traders find suitable partners in the forex market. The trading of foreign exchange is highly risky, and proper assessment of investment objectives is advised.<\/p>\n
The drop in the US ISM Services New Orders index to 50.3 suggests the American economy is losing momentum. Combined with the recent July 2025 jobs report, which showed hiring slow to its lowest pace in a year, we believe bearish positions on the US dollar are warranted. We are considering buying put options on the dollar index, anticipating a further slide in the coming weeks.<\/p>\n
Given the dollar’s weakness, we see the 1.1400 level in EUR\/USD as a strong floor for now. The euro area is benefiting from Germany’s recently passed fiscal spending package, which should bolster the economy through the autumn. We feel that buying near-term call options on EUR\/USD above this support level offers a favorable risk-reward profile.<\/p>\n
However, we must also plan for the European Central Bank’s potential rate cut in late 2025. This risk makes us cautious about holding long euro positions for too long. We are looking at longer-dated derivatives, such as buying puts on the euro dated for the first quarter of 2026, to hedge against this expected policy shift.<\/p>\n
Gold\u2019s strength near $3,400 an ounce is a logical reaction to the slowdown in the United States and persistent inflation, which we saw again in last month’s 4.2% US CPI reading. Recalling the inflationary period of the early 2020s, investors are clearly seeking safety from currency debasement. We view buying call options on gold miners as a good way to gain leveraged exposure to this ongoing trend.<\/p>\n
In the cryptocurrency space, we are seeing a tug-of-war in Ethereum. Last week saw record outflows of over $600 million from ETH ETFs, yet corporate treasuries continue to accumulate, creating major uncertainty. To capitalize on this, we believe setting up option straddles is the best approach, as it will profit from a large price move in either direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" ISM Services New Orders dip; EUR\/USD steady; gold, Ethereum climb; eurozone resilient amid looming risks.<\/p>\n","protected":false},"author":62,"featured_media":16960,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-28286","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\/28286","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=28286"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/28286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16960"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=28286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=28286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=28286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}