Insights 
VT 
India’s foreign exchange reserves declined to $689.73 billion as of October 27, a decrease from the previous figure of $695.36 billion. This data reflects a reduction of approximately $5.63 billion over the period.
In other market updates, the USD/CAD pair experienced a fall due to robust Canadian employment figures. The Euro strengthened against the British Pound following hints of a dovish stance from the Bank of England.
Michigan’s Index and Gold Stability
The University of Michigan’s Consumer Sentiment Index dropped to 50.3 in November, lower than the anticipated 53.2. Meanwhile, the price of gold held steady near $4,000 per troy ounce amid cautious market sentiment and declining US Treasury yields.
On the topic of cryptocurrency, Dogecoin stabilised above $0.1600 following a turbulent start to the week. Discussions regarding the potential launch of the Bitwise Dogecoin spot ETF were also noted, which could occur 20 days after regulatory filings are completed.
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India’s foreign exchange reserves saw a drop in late October 2025, which we see as a sign the Reserve Bank of India is actively defending the rupee. This suggests the RBI is selling dollars to prevent the currency from weakening past a key psychological level, likely around 85 USD/INR. Traders should consider selling volatility on the USD/INR pair, as this intervention could keep it range-bound in the immediate term.
USD Pressure and Gold Movements
The US Dollar is facing significant pressure, and we expect this to continue. The disappointing University of Michigan Consumer Sentiment reading of 50.3 is now supported by the latest October 2025 data showing US inflation (CPI) cooling to 2.8% and job growth slowing sharply. This weak data justifies the recent Fed rate cut and points to further downside for the Greenback.
Gold’s push toward the $4,000 mark is directly tied to the sinking dollar and falling US bond yields. With the 10-year Treasury yield now having dipped below 3.5%, the appeal of non-yielding gold has surged, a trend confirmed by steady inflows into gold ETFs throughout October. We should look to buy gold calls or use bull call spreads to ride this momentum.
We see a clear divergence opening up between the Euro and the Pound. The Bank of England is signaling a dovish shift after UK GDP growth for the third quarter of 2025 came in at a standstill of just 0.1%. This makes it likely they will cut rates before the European Central Bank, creating a strong case for long EUR/GBP positions.
The Canadian dollar is showing strength against its US counterpart for a reason. Strong Canadian jobs data, with a reported gain of 60,000 positions last month, contrasts sharply with the slowing US labor market. This gives the Bank of Canada justification to hold rates steady, reinforcing our view to sell any rallies in the USD/CAD pair.
The potential launch of a spot Dogecoin ETF in the coming weeks presents a clear, event-driven opportunity. We saw what happened with the approval of Bitcoin ETFs back in early 2024, which led to massive capital inflows and a price surge. Buying DOGE call options with expirations in late November or early December is a direct way to play the building anticipation.
