India’s trade deficit for October was $41.68 billion, exceeding the expected $29.4 billion. This discrepancy suggests shifts in either imports or exports dynamics have impacted the balance.<\/p>\n
The US Dollar has shown renewed strength, impacting currency pairs like EUR\/USD and GBP\/USD. EUR\/USD dropped below 1.1600 due to diminishing expectations for a Federal Reserve rate cut in December, affecting market sentiment.<\/p>\n
GBP\/USD has seen modest growth, but it remains under the 1.3200 mark amidst concerns about the UK fiscal landscape. In contrast, gold has been stabilising around $4,000 per troy ounce, with market players reassessing Federal Reserve policy speculations.<\/p>\n
Cryptocurrencies like Bitcoin, Ethereum, and XRP are trying to recover, with Bitcoin trading above $95,000. Ethereum lingers below $3,200, while XRP maintains around $2.27, following subtle recovery signs.<\/p>\n
In stock markets, the start of the week sees a stabilised mood, with US stock futures anticipating slight gains and European indexes showing little change. The price of Pi Network, bolstered by new Pi App Studio updates, is above $0.2200, marking a sustained recovery.<\/p>\n
The Indian trade deficit for October 2025 came in shockingly high at $41.68 billion, blowing past the $29.4 billion expectation. This is a record-high deficit, far exceeding the previous peak of around $30 billion we saw back in 2022, and it puts significant downward pressure on the Indian Rupee. We should therefore consider long positions on USD\/INR futures or buy out-of-the-money call options to profit from further INR depreciation.<\/p>\n
With the market now pricing out a December 2025 Fed rate cut, the US Dollar is finding renewed strength across the board. According to current futures market pricing, the probability of a cut has fallen from over 60% just last week to under 25% today, fueling this dollar rally. Given the EUR\/USD pair\u2019s break below the key 1.1600 level, we see opportunities in buying put options on the Euro.<\/p>\n
This shifting sentiment on US rates is also creating a major headwind for Gold, which is struggling to hold above $4,000. Higher for longer US interest rates increase the opportunity cost of holding the non-yielding metal, a pattern we saw suppress prices throughout the 2022 hiking cycle. We are therefore cautious on long positions and may look to sell call options against existing holdings to collect premium.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" India’s trade deficit widens; USD strengthens; cryptocurrencies recover; gold stabilizes; stocks steady amid market reassessments.<\/p>\n","protected":false},"author":62,"featured_media":16966,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-35120","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\/35120","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=35120"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/35120\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16966"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=35120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=35120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=35120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}