Insights 
VT 
In July, total vehicle sales in the United States increased to 16.4 million units, up from 15.3 million in the previous month. This rise reflects a growing demand for vehicles across the nation.
The EUR/USD pair has surpassed 1.1550 due to disappointing US Nonfarm Payrolls (NFP) and ISM Manufacturing PMI data. This has placed the US Dollar under selling pressure and boosted the currency pair’s performance.
Gbp/usd Rebounds Above 1.3250
In a similar trend, GBP/USD turned positive above 1.3250, recovering from a six-day losing streak. The weaker USD, prompted by underwhelming employment figures, allowed it to regain some of its lost ground.
Gold prices reached weekly highs around $3,350 after US NFP data led to a decline in Treasury bond yields. This reassessment of the Federal Reserve’s rate outlook encouraged a bullish momentum in the XAU/USD pair.
Cryptocurrency markets experienced headwinds, despite a strong July where Bitcoin and selected altcoins achieved record highs. Currently, Bitcoin is below $115,000, with bears targeting the $112,000 support level amidst increased liquidations.
We see the strong July auto sales, hitting 16.4 million units, as a sign of resilient consumer spending, a view supported by recent earnings from major dealership networks. This clashes with the weak jobs data from the Nonfarm Payrolls report, creating a conflicting economic picture. This divergence suggests traders should be prepared for volatility in US equities and indices.
Eurozone Inflation And Central Bank Outlook
With EUR/USD now above 1.1550, we are looking at call options to ride this momentum against the weaker dollar. The latest Eurozone inflation print for July 2025 came in at a stubborn 3.1%, slightly above expectations, giving the European Central Bank less room to ease policy compared to the Fed. This divergence in central bank outlooks reminds us of the trend that drove the pair back in 2021.
The recovery in GBP/USD above 1.3250 is notable, but we remain cautious given the UK’s own challenges. The Bank of England’s latest meeting minutes from late July 2025 revealed a split vote on future policy, creating underlying uncertainty for the pound. We will be using options spreads to trade the expected choppiness rather than taking a simple directional bet on the currency.
Gold’s surge toward $3,350 is a direct response to the U.S. 10-year Treasury yield dropping below 3.5% for the first time since the spring of 2025. This breakdown in yields makes holding non-yielding gold more attractive, so we are considering long-dated futures to capture a potential move toward the $3,500 resistance level. Historically, gold has performed well when the market anticipates the Federal Reserve is finished with rate hikes.
In the crypto space, we are watching the current pullback as a test of the recent bull run. The sell-off accelerated after liquidations of over $500 million in leveraged long positions were reported in the last 48 hours across major exchanges. We are looking at the $112,000 support level for Bitcoin; a failure to hold there could open the door for put options targeting the psychological $100,000 mark.
