In the third quarter, China’s year-on-year GDP aligns with expectations at 4.8%

    by VT Markets
    /
    Oct 20, 2025

    China’s economy grew by 4.8% year-on-year in the third quarter of 2025, meeting forecasts. This performance maintained the growth momentum despite various global economic challenges.

    In other financial news, the EUR/USD exchange rate remained near 1.1650 following a credit rating downgrade for France. The GBP/USD rate steadied above 1.3400, influenced by a soft US dollar and mixed market conditions.

    Precious Metals And Cryptocurrency Trends

    Gold prices fell slightly to around $4,245 after easing demand post-festive season. The cryptocurrency market experienced liquidity surges of over $1 billion, with significant losses for BNB, Solana, and Cardano.

    The FXStreet article covers various brokers, offering reviews and comparisons for traders in 2025. This includes evaluations of low-spread brokers and those providing good leverage opportunities across different regions.

    China’s economy meeting its 4.8% growth forecast for the third quarter provides a stable backdrop, removing immediate fears of a hard landing that we saw in previous years. This stability supports commodity-linked currencies, so we should consider call options on the Australian dollar. With China’s official manufacturing PMI data from September 2025 showing a steady 50.2, the economic picture is one of managed consistency, not rapid expansion.

    Crude Oil Prices And Market Outlook

    The situation with crude oil warrants a bearish stance in the near term. WTI struggling near $57 a barrel, a sharp contrast to the $80-$90 range seen through much of 2023 and 2024, is a clear sign of oversupply. With recent reports indicating OPEC+ compliance has fallen below 90%, we can use put options to position for further price weakness.

    In Europe, the downgrade of France’s credit rating by S&P is a significant headwind for the euro. We are seeing the spread between French and German 10-year government bonds widen, recently hitting 65 basis points, signaling rising risk aversion. This makes shorting the EUR/USD pair, possibly through futures contracts, an attractive strategy for the coming weeks.

    Gold’s pullback from its peak near $4,250 suggests the rally is losing steam for now. The metal’s historic climb from its 2024 lows around $2,400 seems overextended, and the easing of physical demand creates an opportunity. We can look at selling out-of-the-money call spreads to collect premium while capping our risk.

    The upcoming Trump-Xi meeting at the APEC summit introduces major event risk that the market seems to be underpricing. Given the potential for volatility in equities and currencies, buying protection is a prudent move. The VIX index, a measure of expected market volatility, is currently at a relatively low 18, making call options on the VIX an inexpensive hedge against a breakdown in talks.

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