Insights 
VT 
In September, the M4 money supply in the United Kingdom increased from 3.4% to 3.6% year-on-year. This is an indicator of the amount of money circulating within the economy during that period.
The Bank of Canada is anticipated to reduce its benchmark interest rate to 2.25% following a similar action in September. This adjustment is part of the central bank’s ongoing easing strategy. The US Federal Reserve is also expected to lower the policy rate after its October meeting.
Solana And Western Union Partnership
Solana (SOL) has partnered with Western Union, leading to increased institutional support. The Bitwise Solana Staking ETF recorded $56 million in trading volume on its launch day, underlining its market impact.
Current market trends show the EUR/USD trading below 1.1650 and GBP/USD moving towards 1.3200 amid BoE rate cut speculations. Gold trades over $4,000 as markets adjust ahead of the Federal Reserve policy announcements.
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Bank Of Canada Rate Cut
With the Bank of Canada poised to cut its rate to 2.25% today, a move largely expected after last quarter’s weak 0.5% GDP growth, we are closely watching for their forward guidance. The US Federal Reserve is also expected to cut rates, a response to a softer-than-projected September jobs report which showed only 150,000 new jobs added. This coordinated easing from North American central banks is setting a clear tone for markets.
In the United Kingdom, the recent rise in M4 money supply to 3.6% creates a complex picture for the Bank of England. While markets are pricing in rate cuts, the latest inflation data from September remained sticky at 2.8%, well above the 2% target. This conflict suggests traders should be prepared for volatility in GBP/USD, which is already under pressure near the 1.3200 level.
The policy divergence between central banks is driving EUR/USD below 1.1650. While we see the Fed moving towards further easing, recent comments from European Central Bank officials suggest they are unlikely to cut rates before 2026. This growing interest rate differential makes long dollar positions against the euro a compelling strategy for the weeks ahead.
Gold’s rally above $4,000 an ounce is a direct result of these global rate cut expectations, pushing the metal past the all-time highs we first saw back in early 2024. Lower interest rates decrease the opportunity cost of holding gold, supporting its value as a safe-haven asset. The underlying bullish trend appears strong, though traders should remain mindful of potential profit-taking.
The new partnership between Solana and Western Union has ignited significant derivative market activity. We have seen open interest in SOL perpetual futures increase by over 25% in the last 48 hours, signaling that traders are positioning for further gains. Given this momentum, using options to play the expected rise in volatility could be a sensible approach.
