On September 16, 2025, China announced a new policy aimed at boosting consumption. In Japan, officials expressed satisfaction with the newly implemented tariff agreement with the US. Swatch has released a humourous watch design relating to tariffs. <\/p>\n
Cryptocurrency news includes Citi forecasting Ether’s value could reach US$6300 by the end of 2025. The People\u2019s Bank of China set the USD\/CNY central rate at 7.1027. In the US, a proposed oil tariff on China is contingent on Europe\u2019s actions.<\/p>\n
Lisa Cook, confirmed for the FOMC meeting, may appeal to the Supreme Court following a US court decision. Trump’s Fed Board nominee, Stephen Miran, has secured Senate votes for confirmation. Discussions surrounding quarterly reporting changes are ongoing, with Trump in favour of abandoning such reports.<\/p>\n
In the currency market, the USD\/JPY saw a slight decrease while maintaining limited movement range across major FX. In the stock market, Japan’s Nikkei 225 rose by 0.3%, while Australia’s S&P\/ASX 200 climbed 0.24%. Hong Kong’s Hang Seng remained flat, and Shanghai Composite saw a 0.2% decline.<\/p>\n
Forex trading involves high levels of risk; thorough consideration of objectives and risks is advised. InvestingLive offers educational and informational resources, stressing individual research and decisions.<\/p>\n
With the Federal Open Market Committee meeting starting today, we are bracing for a spike in market volatility. The CBOE Volatility Index (VIX) has already risen over 8% in the past week, suggesting traders are buying protection against sharp market moves. Given the expectation of a rate cut but a cautious tone from Chair Powell, using options strategies like straddles or strangles to bet on a big price swing, regardless of direction, could be a smart play.<\/p>\n
The S&P 500 is hovering near its all-time high of 6,150, making it vulnerable to any hawkish surprises from the Fed. We saw a similar situation in late 2024 when an unexpectedly firm stance from Powell triggered a 3% correction in just two days. Hedging long equity portfolios by purchasing put options on major indices like the SPX or QQQ seems prudent until the Fed\u2019s new direction becomes clearer.<\/p>\n
In the currency markets, the dollar is the center of attention, but Trump’s recent push for a 15-20% tariff on EU goods puts the Euro under significant pressure. The EUR\/USD pair, currently trading around 1.0550, could see a sharp decline if this tariff rhetoric gains more traction in Washington. Traders might consider buying puts on the Euro to speculate on this potential political headwind.<\/p>\n
We are also watching China closely after the PBoC\u2019s stronger-than-expected Yuan fixing and promises of more stimulus. This signals support for their economy, which could boost China-focused ETFs and the Australian dollar. Options volume on the iShares China Large-Cap ETF (FXI) has already increased by 15% this month, showing that traders are positioning for a potential rally.<\/p>\n
Looking further ahead, the discussion about shifting U.S. companies to semi-annual earnings reports is a significant development for volatility traders. Such a change would consolidate market reactions into two major events per year, likely making price swings around those dates much larger. This is a longer-term trend to monitor, as it could fundamentally change strategies for trading options around earnings season.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" China boosts consumption; Japan pleased with US tariff pact; Ether forecasted at $6300 by 2025.<\/p>\n","protected":false},"author":62,"featured_media":17025,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-30825","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\/30825","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=30825"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/30825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17025"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=30825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=30825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=30825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}