The US SEC has approved generic listing standards for new crypto ETFs. This development is seen as a positive move for the cryptocurrency market.
In related news, a golden Trump statue with Bitcoin appeared outside the Capitol before the Federal Reserve’s rate decision. The proposed tariff by Trump on EU goods caused the EURUSD to decrease.
Bank Of England Expectations
The Bank of England is expected to slow bond sales while maintaining rates at 4%. Meanwhile, China’s surplus of vehicles has led to discounts and grey markets, raising concerns for manufacturers.
New Zealand’s GDP in the second quarter fell by 0.9%, compared to the expected 0.3% decline. The FOMC’s stance shows a lean towards neutrality, yet persistent inflation may postpone easing.
A tragic incident saw three police officers shot fatally in Pennsylvania, USA. A general risk warning notes the high-risk nature of foreign exchange trading, cautioning against investing money one cannot afford to lose.
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We see the SEC’s approval of generic listing standards for crypto ETFs as a significant green light for the sector. This move will likely accelerate the launch of new products, increasing market access and potentially driving a new wave of investment into digital assets. Derivative traders could look to build positions in long-dated call options on Bitcoin and Ethereum, anticipating increased volatility and upward price trends similar to the surge we witnessed after the initial spot ETF approvals back in 2024.
The proposal of a 15-20% tariff on EU goods introduces major geopolitical risk, putting direct pressure on the EURUSD exchange rate. We believe this creates an opportunity to short the Euro, possibly through futures or by buying put options, as trade-war rhetoric historically weakens the targeted currency. This kind of uncertainty also tends to spike market volatility, making call options on the VIX a potentially effective hedge against a broader equity downturn.
The Federal Reserve remains cautious, signaling that sticky inflation is delaying any move toward rate cuts. With the latest August 2025 Consumer Price Index data still showing core inflation stubbornly above 3%, the market may have to abandon hopes for monetary easing this year. This “higher for longer” reality supports a strong US dollar and suggests a defensive posture on rate-sensitive growth stocks, perhaps by using put spreads on the Nasdaq 100.
Economic weakness outside the US is becoming more pronounced, highlighted by New Zealand’s sharp GDP decline and the concerning auto glut in China. These data points reinforce a global slowdown narrative, which should further bolster the US dollar against commodity currencies like the NZD and AUD. We would be cautious with long positions in industrial commodities, as slowing Chinese manufacturing has historically been a lead indicator for falling copper and oil prices.
