Insights 
VT 
Australia’s S&P Global Manufacturing PMI for October stayed at 49.7. This indicates that the manufacturing sector is still in contraction territory for the month.
The Dow Jones Industrial Average experienced a week-long stall, continuing through Friday. This includes broader market impacts and investor sentiment.
Meta Platforms Sell Off
Meta Platforms’ stock continues its earnings-driven sell-off. Concerns about quarterly results have impacted market confidence.
The EUR/USD ended October weak, holding above a three-month low at 1.1522. GBP/USD also saw a decline, hitting fresh six-month lows and staying defensive due to a strong dollar and UK fiscal issues.
Gold’s value has dropped to its weakest since early October, affected by hawkish Fed tones and US-China trade dynamics. The price of gold remains under pressure due to ongoing global economic factors.
Risk sentiment remains uncertain post a Fed rate cut, and strong earnings and trade peace are not fully resolved. Further market movements could be influenced by US data, central bank meetings, and broader economic policies.
Bitcoin Anniversary
Bitcoin marks its 17th anniversary since the publication of its whitepaper by Satoshi Nakamoto. Over time, Bitcoin has grown into a globally recognised asset class with various institutional backing.
Given the Federal Reserve’s cautious tone, the US Dollar is likely to remain strong in the coming weeks. The latest US inflation data from October 2025 showed core CPI holding firm at 3.8%, supporting the case for higher-for-longer interest rates. We should therefore consider buying call options on the US Dollar Index (DXY) or selling EUR/USD futures, as the pair struggles near three-month lows.
The British Pound faces pressure from both the strong dollar and domestic fiscal worries, pushing it to a seven-month low. Recent data from the UK’s Office for National Statistics showed GDP growth in the third quarter of 2025 was a mere 0.1%, highlighting economic fragility. This makes buying put options on the GBP/USD pair an attractive strategy to hedge against further declines below the 1.3100 level.
Australia’s manufacturing sector is signaling contraction, with the S&P Global PMI at 49.7 for October 2025. This weakness, combined with a hawkish Fed, weighs heavily on the Australian dollar. We see this as an opportunity to initiate short positions on the AUD/USD, potentially through futures contracts, anticipating a move lower.
Gold has broken below the key $4,000 level, pressured by the strong US dollar and an apparent truce in US-China trade relations. Historically, a rising Dollar Index, which just last week topped 108, creates significant headwinds for commodities priced in dollars. We anticipate further downside, making put options on gold futures (GC) a prudent consideration.
Concerns of an oil glut are growing, prompting OPEC+ to consider pausing output hikes next year. Recent Energy Information Administration (EIA) data from late October 2025 confirmed this fear, showing a surprise inventory build of over 3 million barrels in the US. Selling crude oil futures or buying puts on WTI could be a way to position for potentially lower energy prices driven by weakening demand.
With the Dow Jones stalling and major tech stocks like Meta Platforms selling off, equity market uncertainty is rising. The CBOE Volatility Index (VIX) has climbed from its September 2025 lows near 14 to trade above 19, indicating traders are pricing in more risk. This environment may favor strategies that profit from volatility, such as purchasing straddles on major indices like the S&P 500.
