Insights 
VT 
Canada’s imports increased from $66.79 billion to $66.91 billion in August. This marks a slight rise in the country’s import activities, providing insights into its economic interactions.
In currencies, the Australian dollar maintained above key support levels, even as the US dollar gained strength. Meanwhile, the British pound experienced fluctuations in value due to ongoing economic themes.
Gold And Cryptocurrency
Gold is trading close to the $4,000 level amidst global political uncertainties, including prospects of a US government shutdown and instability in France. Major cryptocurrencies like Bitcoin and Ethereum continue to experience notable values, with Bitcoin reaching a high of $126,199.
Japan experienced a change in leadership as Sanae Takaichi won Japan’s leadership race. This shift promises stability in policy direction, continuing previous monetary easing practices.
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Market Moves Influenced By US Dollar
The strong US dollar continues to dictate market moves, fueled by renewed fears of a government shutdown. This is a familiar pattern; we saw similar risk-aversion during the near-shutdowns of late 2023. Consequently, we are seeing pressure on pairs like GBP/USD, which is struggling to hold its ground above 1.3400.
Political uncertainty is pushing capital into traditional safe havens, with gold approaching the key $4,000 level. This rally represents a significant breakout from the previous all-time high of around $2,450 per ounce, which was set back in May of 2024. The combination of US political turmoil and an expansionary policy in Japan is providing strong support for the metal.
The slight increase in Canadian imports for August to $66.91 billion does little to change the broader picture for the loonie. Given the strength of the US dollar, our largest trading partner, any gains for the CAD will likely be limited. We must also price in the risk of potential tariffs, which remains a persistent theme in US politics.
In the digital asset space, Bitcoin is consolidating around $124,000 after its recent record high, a move many anticipated following the 2024 halving event. The surge in Ethereum suggests traders are betting on continued institutional inflows into the crypto market. Options traders should watch for increased implied volatility as these assets test their new ranges.
For the coming weeks, we see opportunities in trading volatility rather than picking a firm direction. Long volatility strategies on gold could be attractive, while options on currency pairs can be used to hedge against further dollar strength. The market is being driven by political headlines, making outright directional bets particularly risky.
