Insights 
VT 
Greece’s Consumer Price Index, harmonised year-on-year, dropped to 1.8% in September from the previous 3.1%. This marks a decrease in the inflation rate, reflecting changes in the country’s economic conditions.
Factors Influencing Economic Shifts
Various factors influence these economic shifts, and they may impact other financial markets and instruments. Notably, the US dollar experienced increased demand owing to a shift in risk sentiment amid global financial uncertainties.
Gold shows signs of recovery in value after falling during the Asian session, supported by expectations of reduced borrowing costs by the US Federal Reserve. Meanwhile, in the cryptocurrency sector, Bitcoin and other major digital currencies, including Ethereum and Ripple, have seen a downturn due to profit-taking behaviours.
Elsewhere, Monero (XMR) has continued to gain in value, targeting its highest levels in four months. Market observers are also evaluating forex brokers for 2025, considering various factors like spreads and leverage.
Investment carries risks, and individuals are encouraged to engage in thorough research before making decisions. All data provided is for informational purposes, and there are no guarantees regarding the accuracy or completeness of this information.
Impact of Greek Inflation Drop on Eurozone
The sharp drop in Greek inflation to 1.8% is a significant disinflationary signal for the Eurozone. This figure brings inflation much closer to the European Central Bank’s 2% target, increasing the likelihood of a more dovish stance from policymakers. We see this pressure reflected in the EUR/USD, which is pushing towards the 1.1600 level amid concerns over French political stability.
The ongoing US government shutdown, now entering its second week, is fueling short-term demand for the US Dollar as a safe haven. Historically, extended shutdowns like the 35-day one back in late 2018 have increased market volatility, so we are watching for signs of a prolonged impasse. This makes Fed Chair Powell’s upcoming remarks critical, as the market is torn between current haven demand and expectations of future rate cuts.
Expectations for two more Federal Reserve rate cuts before year-end are keeping gold prices elevated near the $4,000 mark. We view any dip-buying in this area as a strategic move to capitalize on the dovish Fed outlook. This environment, where yields are expected to fall, makes holding non-yielding assets like gold increasingly attractive.
This “unusually cloudy” economic outlook suggests a period of higher volatility across asset classes. Traders should consider strategies that profit from price swings, such as purchasing options on major indices. The CBOE Volatility Index (VIX) has already climbed over 8% in the past week to trade near 19.5, reflecting this rising market anxiety.
