Japan’s Gross Domestic Product (GDP) for the third quarter of 2025 registered a decrease of 0.6% quarter-on-quarter. This decline was larger than the anticipated decrease of 0.5%. <\/p>\n
In currency markets, the Australian dollar versus the US dollar (AUD\/USD) remained stable below 0.6650 ahead of China’s trade data. The People’s Bank of China set the USD\/CNY reference rate at 7.0764, slightly above the previous 7.0749.<\/p>\n
The GBP\/USD pair is consolidating around 1.3330 as traders await the Federal Reserve’s rate decision. Gold has drifted higher, trading near $4,205 due to widespread expectations of a Fed rate cut.<\/p>\n
Ahead of the week, the Federal Reserve is expected to make a decision on rate cuts, while other central banks including the RBA, BoC, and SNB also have meetings. Silver has reached a new all-time high, while Ripple continues to decline, priced at $2.06 as of Friday.<\/p>\n
Brokers in 2025 offer a range of services, including those with low spreads and high leverage. There are guides available for trading platforms and specific regions like MENA and Latin America to assist traders in choosing the right broker.<\/p>\n
With the Federal Reserve widely expected to cut interest rates this week, we believe volatility will increase significantly. The CBOE Volatility Index (VIX) has already climbed to 15.2, reflecting market anticipation for the Fed’s decision and forward guidance. Derivative traders might consider buying options like straddles on major indices to profit from a large price move in either direction.<\/p>\n
Given the widespread expectation of a Fed rate cut, we see continued downward pressure on the US dollar. This pattern mirrors what we saw back in late 2023, when expectations of Fed easing caused the dollar index (DXY) to fall from over 107 to below 102 in just a few weeks. Therefore, short positions on USD\/JPY through futures or buying put options could be advantageous, as the yen is positioned to gain against a weakening dollar.<\/p>\n
The contraction in Japan’s Q3 GDP, coming in worse than expected at -0.6%, confirms underlying economic weakness. Recent data has also shown a decline in industrial production for the second straight month, reinforcing this negative outlook. This makes put options on the Nikkei 225 index an interesting hedge or a speculative short position for the coming weeks.<\/p>\n
Gold’s position above $4,200 is directly tied to the expected Fed rate cut, as lower interest rates reduce the opportunity cost of holding the metal. We saw a similar setup in the 2019 easing cycle, where gold rallied over 20% in the following year. Traders could consider buying call options on XAU\/USD to capture further upside while limiting risk.<\/p>\n
We should note the divergence between silver and gold, where silver has posted a new all-time high while gold has not. The Gold-to-Silver ratio has recently fallen to near 65, down from its average of 80 earlier in the year of 2025, suggesting silver may be relatively overvalued. This situation presents a potential pairs trade opportunity, using futures to go long gold and short silver to bet on the ratio returning to its historical mean.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Japan’s GDP shrinks 0.6%, gold rises on Fed rate cut hopes, silver hits record high.<\/p>\n","protected":false},"author":62,"featured_media":17027,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36197","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\/36197","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=36197"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17027"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=36197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=36197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=36197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}