Insights 
VT 
The New Zealand Labour Cost Index for the third quarter reported a year-on-year rise of 2.1%, aligning with forecasts. This data provides a view into wage growth trends as the economic context evolves, impacting inflation and monetary policies.
In related market news, EUR/USD has maintained gains near 1.1500 due to cautious sentiment regarding ECB policy outlooks. Meanwhile, GBP/USD has dropped to new lows, and gold has declined to a three-day low near $3,930.
Ethereum Market Update
Ethereum’s price fell below $3,500 due to ETF outflows, while the week ahead may see shifts in risk sentiment after recent developments. Additionally, DeFi platforms are under scrutiny following a $120 million Balancer hack.
The year 2025 features evaluations of various brokers, assessing their suitability for traders concerning spreads, leverage, and platform offerings. This includes an overview of top brokers in regions like Mena and Latam and guidance on choosing regulated brokers and those with Islamic and swap-free accounts.
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Looking back at the third quarter data, the 2.1% labour cost index in New Zealand was manageable and in line with expectations at the time. However, wage pressures have since accelerated, with the most recent data for Q3 2025 showing a much higher 3.2% year-on-year increase. This persistent inflation means we expect the Reserve Bank of New Zealand to maintain its restrictive stance, suggesting derivative traders should be cautious about betting on NZD weakness.
Currency Market Landscape
The currency market landscape has shifted significantly since the euro was trading near 1.1500 against the dollar. With the EUR/USD currently hovering around 1.0950, dollar strength has been the dominant theme, driven by a more resilient US economy. Recent statements from the European Central Bank hint at further easing to combat sluggish growth, making options that protect against a drop below 1.0800 a prudent strategy.
At that time, gold was easing near a very high $3,930, reflecting significant global uncertainty and inflationary fears that peaked in 2024. Now, with gold trading closer to $3,550 and the latest US Consumer Price Index for October 2025 coming in at a more moderate 2.5%, the extreme flight to safety has subsided. This suggests that call option volatility will likely decrease, and traders might consider strategies better suited for a more stable, albeit high, price range.
We also see a maturing digital asset market compared to the period when Ethereum dipped below $3,500 amid ETF outflows and major DeFi hacks. Today, with Ethereum trading near $4,800, a clearer regulatory framework has attracted significant institutional capital, reducing the kind of extreme volatility seen in the past. Derivative positions should now account for a market that is more influenced by macroeconomic data than by platform-specific security flaws.
