Insights 
VT 
South Africa’s Business Confidence Index rose to 121.1 in August from 116.7 in the previous month. This data suggests a boost in business sentiment during this time frame.
The rise in confidence may have implications for economic activity in South Africa. Meanwhile, global markets are observing other developments, such as gold stabilising after a record surge and supply concerns affecting silver prices.
Currency Markets Activity
In currency markets, the EUR/GBP is gaining as UK labour market weaknesses and French political risks influence trading dynamics. In other developments, the USD/CNH is projected to trade in a range between 7.1200 and 7.1550.
European asset manager Amundi is set to launch a Bitcoin exchange-traded product in 2026. This move marks their first foray into crypto funds, indicating growing interest in digital currencies among established financial institutions.
Elsewhere, the best forex and CFD brokers for 2025 have been identified, catering to various trader needs. These brokers cover multiple regions, including Europe, Mena, Latam, and Indonesia, offering services like low spreads and high leverage.
FXStreet has outlined its terms and conditions, stating that market information shared is for informational purposes and involves risks. It emphasises that thorough research is recommended before making financial decisions.
Current Market Trends
Given the current risk-off mood in the market, we are seeing a flight to safety that is lifting the US Dollar. Tensions with China are unsettling investors, causing the VIX to climb back above 22, a level we have not consistently seen since the regional banking stress back in 2023. We expect this demand for dollars to continue putting pressure on pairs like EUR/USD and GBP/USD in the immediate term.
Traders should watch the upcoming speech from Fed Chair Powell very closely for signs that the two expected rate cuts are still on the table for this year. With the latest September CPI data coming in at a manageable 2.1%, the Fed has plenty of room to ease policy if the economy shows further weakness. Any dovish confirmation will likely reverse the dollar’s recent strength and could provide a significant catalyst for risk assets.
Gold is acting as the ultimate safe haven, holding firm above $4,100 an ounce and staying near the all-time highs we saw earlier this month. The combination of geopolitical uncertainty and the prospect of lower interest rates creates a strong floor for prices. We see using call options on gold futures as a prudent way to maintain upside exposure while defining risk, especially after its record-breaking surge from the sub-$3,000 levels seen at the start of 2025.
In the UK, the data supports a weaker Pound Sterling, as the unemployment rate ticked up to 4.8% for the quarter ending in August. This is a notable increase from the 4.2% average we saw in the first half of 2025 and suggests the British economy is slowing. We anticipate GBP/USD will remain heavy, and traders could consider put options to capitalize on a potential move towards the 200-day moving average.
Conversely, the South African business confidence reading for August provides a rare bright spot in the global picture. The index jump to 121.1 is the highest reading since before the global energy crisis in 2022, suggesting strong domestic fundamentals. This could create an opportunity to go long the South African Rand (ZAR) against a weaker currency like the Pound.
The crypto space remains driven by longer-term narratives, with the announcement of Amundi’s planned Bitcoin ETP for 2026 underscoring ongoing institutional adoption. While this does not impact immediate price action, it adds to the underlying bullish sentiment in the digital asset market. For derivative traders, this reinforces the strategy of selling longer-dated puts to collect premium, capitalizing on the view that major institutional players are building for the future.
