Insights 
VT 
Japan’s Tokyo CPI, excluding food and energy, rose to 2.8% year-on-year in October, up from 2.5% previously.
The EUR/USD pair found some buyers in the Asian session, ending a two-day decline near support levels between 1.1550 and 1.1540, trading around 1.1575.
Currency Fluctuations
GBP/USD continued its downward trend, falling towards 1.3100 and marking six-month lows at 1.3116. The Pound was down over 2% against the US Dollar in October.
Gold stabilised above $4,000 early Friday, aiming for its third monthly gain. The US Dollar reached two-month highs due to reduced expectations of a December rate cut.
Bitcoin traded below $109,000 after a weekly decline of nearly 5%. Ethereum and Ripple corrected around 8% and 7%, respectively, nearing critical support levels.
The framework deal between Trump and Xi included China reducing Fentanyl tariffs and resuming soybean imports from the US, with delayed export controls.
Zcash maintained its bullish trend, trading at approximately $360. The token has been rising despite volatility and a risk-off environment in the cryptocurrency market.
With Tokyo’s core inflation hitting 2.8%, we are seeing persistent price pressures that have not been present for decades. This follows last week’s report showing national wage growth reaching a 30-year high of 3.1%, giving the Bank of Japan more reason to consider a policy change. Traders should watch for hints of a shift away from negative interest rates, which could rapidly strengthen the yen.
Market Analysis
The US Dollar’s strength is being supported by hard data, as the latest Personal Consumption Expenditures (PCE) inflation report for September 2025 came in hot at 3.5%. This puts the Federal Reserve in a position to hold rates higher for longer, crushing any remaining bets for a rate cut this year. In contrast, with Eurozone inflation cooling to 2.1% and the UK’s Office for Budget Responsibility revising its growth forecast downward, the path of least resistance for both EUR/USD and GBP/USD appears to be lower.
Gold holding above $4,000 despite a strong dollar suggests traders are buying it as a geopolitical hedge amid ongoing global tensions. We see this as a classic flight to safety, with investors looking for a reliable store of value as central banks commit to fighting inflation. This environment is reminiscent of what we observed in the late 1970s, when gold performed well even during periods of high interest rates.
Bitcoin’s slide below $109,000 is being driven by more than just technicals, as regulatory uncertainty is resurfacing in the United States. The recent SEC decision to delay rulings on key Ethereum spot ETFs until 2026 has dampened market sentiment significantly. This risk-off mood is amplified by high government bond yields, with the US 10-year Treasury offering a competitive, low-risk return above 5.2%.
While the recent US-China trade agreement removes some minor uncertainty, it doesn’t change the broader risk landscape dominated by central bank policy. This is why we see some assets, like Zcash, bucking the trend due to their own specific narratives around privacy. Traders should be cautious not to misinterpret these isolated pockets of strength as a sign of a broad market rally.
