Insights 
VT 
The core Consumer Price Index (CPI) for Canada remained unchanged at 0.2% in September. This stability follows the ongoing trade developments and economic conditions affecting various currencies worldwide.
The Swiss Franc has weakened as the US Dollar strengthens, due to easing trade tensions between the US and China. Similarly, silver and gold prices fell amidst rising market optimism and a stronger dollar, with gold dipping below the $4,100 region per troy ounce.
Currency Developments
The EUR/USD is around the 1.1600 level, lacking clear direction as market sentiment stabilises. Similarly, GBP/USD has declined to around 1.3360 as the dollar remains firm amidst US-China trade developments.
Bitcoin, Ethereum, and XRP have edged lower amid macroeconomic uncertainty and geopolitical tensions. Corporate asset ownership has seen Bitcoin become a reserve asset, with inflows into Bitcoin treasuries plunging by 99% over five years.
Globally, there is relief over economic improvements, despite underlying concerns about broader shifts. The improving economy is welcomed, yet there is anxiety about potential unknown changes on the horizon, reflecting ongoing economic complexities.
We’re seeing a very different market from the one described back when easing trade tensions were the main story. Now, the focus has shifted to technological competition and supply chain security, which is making the US Dollar act as a safe haven again. This contrasts sharply with the past optimism that once weighed on safe-haven assets.
US CPI Impact
The latest US CPI data from September 2025, which came in hotter than expected at 3.1%, has really changed the game. It suggests the Federal Reserve may keep rates higher for longer, pushing back any talk of cuts into late 2026. This is why we’ve seen the dollar index surge back above 106.50 in recent trading sessions.
For derivative traders, this means re-evaluating currency positions that were established years ago when EUR/USD was trading near 1.1600. With the pair now struggling to hold 1.0750, put options on the Euro could offer a hedge against further dollar strength. Similarly, GBP/USD is a world away from its old 1.3360 levels, now trading closer to 1.2180 as UK inflation appears more contained than in the US.
Looking back, the dip below $4,100 per ounce was clearly a buying opportunity driven by temporary profit-taking. We are now seeing renewed interest in gold, with prices climbing back towards $4,150 as a hedge against both sticky inflation and geopolitical friction. Call options on gold futures look attractive as central bank purchases have also reportedly increased by 15% in the third quarter of 2025.
The key takeaway for the coming weeks is to prepare for increased volatility across asset classes. The VIX index, which measures expected market volatility, has already climbed back above 18 from its summer lows. We believe traders should consider buying straddles or strangles on major indices to profit from large price swings, regardless of the direction.
