Insights 
VT 
The PBOC set the USD/CNY reference rate at 7.0865, lower than the previous 7.0901. Meanwhile, NZD/USD recovered some strength above 0.5650 despite a negative New Zealand jobs report, showing resilience in the currency market.
Temporary Support
The GBP/USD pair found temporary support slightly above 1.3000 ahead of an anticipated Bank of England rate decision. The currency’s movement depicts responses to technical and market pressures over recent weeks.
Gold’s position remains under psychological pressure, failing to breach the $4,000 mark despite US-China trade optimism and a hawkish Federal Reserve stance. Ethereum shows signs of stabilizing after recent declines, supported by recovery metrics.
Elsewhere, Stellar (XLM) faces potential further declines as a Death Cross pattern has emerged. This follows a pattern breakout and reduced retail demand impacting the cryptocurrency’s market trajectory.
We are seeing significant strength in the South Korean economy, with the September current account surplus hitting a robust 13.47B. This trend is supported by preliminary October trade data released this week, which showed another strong surplus of $7.8 billion driven by semiconductor exports. Traders should consider buying call options on the KRW/USD pair to position for further appreciation of the won in the coming weeks.
Dollar Strength
The US Dollar remains strong, a situation reminiscent of the aggressive Federal Reserve tightening cycle we saw back in 2022 and 2023. With the official Non-Farm Payrolls report for October due tomorrow and forecasts pointing to another 210,000 jobs added, we could see another leg up for the greenback. A short-term straddle on the EUR/USD, currently stuck below 1.1500, could be a smart play to capture volatility around the announcement.
Gold continues to struggle below the $4,000 mark as risk appetite and a hawkish Fed outlook put pressure on safe havens. This sentiment is confirmed by data showing global gold-backed ETFs saw net outflows of 15 tonnes in the first few days of November. We believe selling out-of-the-money call options on gold futures is a viable strategy to collect premium while the metal remains capped.
The Pound is finding little support, with the bounce above 1.3000 looking fragile as we expected. The Bank of England’s decision earlier today to hold rates at 5.5% while adopting a more dovish tone on future growth confirms this weakness. For the coming weeks, we see value in buying put options on the GBP/USD, targeting a move below that key 1.3000 level.
