The United States witnessed a decrease in housing starts, with figures dropping from 1.307 million to 1.246 million in September. This decline indicates shifts in the housing market dynamics compared to previous months.
In the foreign exchange market, the US Dollar gained strength, affecting currency pairs like USD/CAD and USD/JPY. Meanwhile, GBP/USD was under pressure, slipping below the 1.3400 mark.
Gold Prices Maintaining an Upward Trend
Gold prices maintained an upward trend, nearing yearly highs around $4,500 per troy ounce. This increase came despite rising US Treasury yields and a strong US Dollar.
In the cryptocurrency sector, Bitcoin held at $90,000, staying below its 50-day EMA. Ethereum remained steady above $3,000, though it was weakened by ETF outflows, while XRP faced challenges due to declining retail demand.
Looking ahead, the US Consumer Price Index (CPI) is expected to impact market movements, with geopolitical factors also playing a role. A possible US Supreme Court decision on tariffs could further influence the financial landscape. Additionally, upcoming Fedspeak may intensify, providing more insights into economic policies.
The drop in housing starts we saw back in September 2025 shows that high interest rates are clearly biting into the economy. Yet, strong labor data has pushed back expectations of any near-term rate cuts from the Federal Reserve. This creates a tricky environment where parts of the economy are slowing down while others remain resilient.
Us Dollar Performance Against Major Currencies
Given this backdrop, we see the US Dollar continuing its strong performance against other major currencies. For instance, the Dollar Index (DXY) has climbed over 3% in the last quarter of 2025, consistently trading above the 105.00 mark. We expect this trend to continue, putting further pressure on pairs like EUR/USD and GBP/USD, especially with the critical US inflation (CPI) report due next Tuesday.
Despite the dollar’s strength, gold is showing unusual resilience, which points to significant underlying fear in the market. This is likely tied to geopolitical tensions and a search for safety that overrides traditional currency correlations. Data from late 2025 confirms this, as central banks globally added a net 228 tonnes of gold to their reserves in the third quarter, the largest quarterly amount on record.
In contrast, the crypto market is signaling a clear risk-off mood for the weeks ahead. With institutional demand waning and the Crypto Fear & Greed Index now sitting at a low of 25, indicating “Fear,” the path of least resistance appears to be lower. We should anticipate further declines or sideways movement in assets like Bitcoin and Ethereum until this market fear subsides.
