Insights 
VT 
Brazil’s industrial output decreased by 0.4% in September compared to a previous increase of 0.8%. This downturn highlights shifts in the industrial sector’s performance over recent months.
Global currency movements also reflected changes, with the USD/JPY declining as the yen strengthened due to increased safe-haven demand. The pound sterling experienced pressure, hitting a seven-month low against the US dollar amid UK fiscal concerns.
Australian Dollar And Precious Metals
Additionally, the Australian dollar weakened following the Reserve Bank of Australia’s decision to maintain its rate pause. In the precious metals market, gold prices remained under pressure as the US dollar strengthened.
Privacy-focused cryptocurrencies Dash and Zcash surged despite overall market corrections, with their market capitalisation briefly surpassing $25 billion. Meanwhile, attention turned to the decentralised finance (DeFi) sector as scrutiny heightened following a $120 million hack on Balancer.
As central banks prepare to release decisions, market participants are assessing potential risks. The US dollar’s recent strength is tested by upcoming events such as Fedspeak and US data releases. With this, different asset classes face varying pressures contingent on evolving economic indicators.
Brazil And Emerging Markets
Brazil’s recent dip in industrial output confirms a broader cooling trend we’re seeing across emerging markets. The MSCI Emerging Markets Index has now slipped nearly 8% since its peak in July 2025. This weakness is likely to encourage put option strategies on emerging market ETFs for the coming weeks.
The US Dollar continues its powerful run, driven by a solid domestic economy and a cautious Federal Reserve. October’s jobs report showed the U.S. added another 210,000 jobs, keeping the unemployment rate at a low 3.8%. As a result, futures markets are now pricing in less than a 15% chance of a rate cut before March 2026.
This dollar strength is pushing pairs like EUR/USD and GBP/USD to multi-month lows, with the pound looking particularly vulnerable below the 1.3050 level. UK fiscal worries are resurfacing, with rising government borrowing costs reminding us of the market turmoil back in 2022. Traders should watch for increased volatility in sterling pairs ahead of the upcoming Bank of England decision.
Gold is struggling to find a footing as it tests the $3,950 per ounce level. The firm dollar is a headwind, but the bigger issue is that real yields on 10-year inflation-protected securities are holding above 2.1%. This environment makes non-yielding assets less appealing, suggesting that selling call options on gold could be a viable strategy.
