Insights 
VT 
South Korea’s Consumer Price Index grew by 2.4% year-on-year in October, surpassing forecasts of 2.1%. This data suggests inflationary pressures could be stronger than previously anticipated.
The Reserve Bank of Australia is likely to hold the Official Cash Rate steady at 3.6% in its November meeting. The announcement will include a Monetary Policy Statement and quarterly forecasts, with a press conference by Governor Michele Bullock following.
Euro and Dollar Movements
EUR/USD has weakened for four consecutive days, now near the 1.1500 support level. This decline reflects the dollar’s recovery, as traders evaluate the Federal Open Market Committee meeting outcomes.
GBP/USD remains stable, flirting with the 1.3150 level, though a technical rebound is pending. Traders are cautious as they await the Bank of England’s interest rate decisions.
Gold prices dipped around $4,000 during the early Asian session on Tuesday. Traders reassessed their expectations for future Federal Reserve rate cuts, in light of upcoming speeches and economic data.
Risk sentiment hasn’t fully benefited from anticipated Fed rate cuts and trade peace talks. The Dollar’s strength could be tested by upcoming Federal discussions, US Supreme Court decisions, and economic reports.
Cryptocurrency Market Sentiments
Cardano (ADA) fell 6% on Monday, trading below $0.58, following a 10% drop the previous week. Increased short positions and reduced on-chain activity indicate bearish market sentiments.
We remember when South Korea’s 2.4% CPI was a surprise, as that was a significant figure in its time. However, the latest figures for October 2025 show inflation is even stickier at 2.9%, which continues to be a concern for the Bank of Korea. This suggests volatility in Asian currency pairs may persist, so traders should consider options strategies to hedge against unexpected policy moves.
Looking back, the struggle around the 1.1500 level for EUR/USD seems like a distant memory from a different market cycle. With the Federal Reserve holding firm in the 5.00-5.25% range through most of 2025 and the pair now trading near 1.0650, the dollar’s dominance is clear. We see traders using bearish options, such as buying puts on the Euro, to capitalize on expectations that the European Central Bank might have to cut rates before the Fed.
Similarly, the battle for GBP/USD at 1.3150 was a key moment in past years, reflecting a different economic outlook. Now, with the pair struggling to stay above 1.2200, the focus remains on the Bank of England’s reluctance to signal any policy easing. This divergence from the Fed’s ‘higher for longer’ stance keeps the pound under pressure, making short positions on GBP futures a continuing theme for the weeks ahead.
The expectation of the Reserve Bank of Australia holding its cash rate at 3.6% was from a different era for monetary policy. Today, we are contending with a cash rate of 4.35% as the RBA fights its own persistent inflation, which its latest quarterly report confirmed is running above target. This has created opportunities in interest rate swaps, with traders betting on how long the RBA can maintain this restrictive stance into 2026.
That period when gold touched $4,000 was fueled by significant rate cut expectations that never materialized. Now, with high interest rates providing a strong yield on cash, gold has settled back around $2,450 an ounce. The metal’s sensitivity to Fed speeches is extreme, so any hint of a policy pivot could cause sharp moves, favoring straddle or strangle options strategies.
We recall when Cardano slipping below $0.58 was seen as a major bearish signal for the altcoin market. After the crypto regulatory frameworks solidified in 2024, ADA has found more stable ground and is currently trading near $0.85. However, volume remains low compared to its peers, suggesting traders should be cautious with leverage and might look at funding rates in perpetual futures for sentiment clues.
