Insights 
VT 
US President Trump announced on Tuesday that he is scheduled to meet Chinese leader Xi Jinping on Thursday. Additionally, he congratulated Nvidia’s Jensen Huang and mentioned an upcoming meeting with him.
During the European trading session, the US Dollar Index (DXY) was down, trading near its weekly low at approximately 98.60. The US Dollar showed weakness against the Japanese Yen with a recorded change of -0.59%.
Current Currency Change Data
Current currency change data reveals fluctuations of the US Dollar against various currencies. USD has shown a decrease of 0.10% against the Euro and a 0.16% increase against the British Pound. USDEUR movements are notable with a 0.10% change, while USDJPY reflects a 0.59% change.
The present currency heat map provides insight into percentage changes of major currencies relative to each other. For example, US Dollar (base) versus Japanese Yen (quote) illustrates a shift of -0.59%.
Author Sagar Dua, linked to the financial markets since his college days, crafts market analyses. His insights and more financial narratives are part of the Orange Juice Newsletter, designed to deliver expert-driven knowledge straight to your inbox.
With the US Dollar Index trading near its weekly low, the market is signaling its concern over the Federal Reserve’s future leadership. President Trump’s comments that Chairman Powell will be out in a few months create significant policy uncertainty, especially as we just saw the latest PCE data come in at 3.1%, still stubbornly above the Fed’s target. We believe this will keep downward pressure on the dollar, making bearish derivative plays on the greenback, such as buying puts on USD futures, a prudent strategy for the coming weeks.
Upcoming Trade Meeting with China
The scheduled meeting with China’s leader this Thursday is the most immediate catalyst for market movement. Trade data from the third quarter of 2025 showed another decline in bilateral trade volumes, so any positive announcement could trigger a significant risk-on rally. We are looking at this as a short-term volatility event and suggest considering strategies like a straddle on equity index futures to capture a large move in either direction, depending on the outcome of the talks.
The Japanese Yen is showing remarkable strength, gaining over half a percent against the dollar. This isn’t just about dollar weakness; it reflects confidence following the President’s praise for Japan’s new Prime Minister, which lessens the fear of future trade conflicts. As the Bank of Japan has remained steadfast in its policy, we anticipate the USD/JPY pair could test lower levels, and we are structuring bear put spreads to capitalize on this trend while defining our risk.
Despite optimism around the trade meeting, gold continues to hold its ground firmly above $3,900 an ounce. Its resilience shows that traders are using it as a hedge against the ongoing Fed uncertainty and the long-term debasement risk for the dollar. We view any dips in gold as buying opportunities and are using call options on gold futures to maintain upside exposure to this core theme of monetary instability.
