Insights 
VT 
Japan’s industrial production increased by 2.2% in September, surpassing the forecasted growth of 1.5%. This marks a key performance indicator for the country’s economic activity, as it outpaced expectations.
Additional topics affecting global markets include the Australian dollar losing strength following mixed data from China’s NBS PMI release. Gold faced new selling pressure amid the Federal Reserve’s firm stance and optimism in US-China trade relations.
Oil Market Conditions
Oil prices remain subdued around $60.00 due to ongoing oversupply issues. The Japanese yen maintains gains from a stronger Tokyo CPI, although it lacks continued buying momentum.
Meanwhile, silver prices remain steady near $49.00 as market participants await speeches from Federal Reserve officials. Concerns also surface from New Zealand with the Reserve Bank highlighting US tariffs as a challenge to demand.
Further insights include the EUR/USD defending the 1.1550 support, while the GBP/USD tests six-month lows as the pound continues to sink. Cryptocurrencies such as Bitcoin, Ethereum, and Ripple are experiencing persisting market weakness.
The FXStreet team advises conducting thorough research before making financial decisions due to associated risks. The information provided is not a recommendation for asset transactions and involves market uncertainties.
Impact of Federal Reserve Policies
Japan’s better-than-expected industrial production of 2.2% suggests a stronger economic footing than we anticipated. This positive surprise, especially after the general weakness we observed through the second quarter of 2025, could provide a tailwind for the yen. We should consider derivatives that profit from yen strength against currencies with weaker outlooks in the coming weeks.
The Federal Reserve’s hawkish stance remains the dominant theme, keeping gold sellers active and the dollar strong. With the Fed Funds Rate holding firm above 5% for most of 2025, the path of least resistance for the US dollar appears to be higher. This pressure is evident with the British Pound testing six-month lows, suggesting further downside is possible for currencies trading against the greenback.
WTI crude oil remaining subdued around $60 per barrel points squarely to oversupply in the market. This is a significant drop from the $80-$90 range we saw through much of 2023 and 2024, suggesting global demand may not be as robust as some hoped. This environment could favor traders using options to bet on continued price stability or weakness in the energy sector.
In contrast, silver’s firmness near $49 an ounce is a key outlier we need to watch closely. This price is testing the major historical resistance level we last saw over a decade ago in 2011, making it a focal point for volatility. Meanwhile, mixed signals from China’s recent PMI data are keeping the Australian dollar under pressure, highlighting ongoing uncertainty in global trade.
