Insights 
VT 
The manufacturing Purchasing Managers’ Index (PMI) for Singapore stood at 50.1 in October. This indicates a slight expansion in the manufacturing sector, as the reading is above the neutral 50 mark.
The USD/CHF currency pair reached a three-week high due to a weaker inflation report and a strong US Dollar. Additionally, the GBP/USD pair remained stable as traders awaited the Bank of England’s interest rate decision.
Gold Prices and Meme Coin Trends
Gold prices hovered around $4,000 per troy ounce, but gains were limited due to a strong US Dollar and hawkish remarks from Federal Reserve officials. Meme coins like Dogecoin and Shiba Inu are experiencing downturns as large investors decrease their holdings, boosting supply pressure.
Cardano’s (ADA) price experienced a 6% drop, trading below $0.58 following a 10% fall the previous week. This decline is associated with reduced on-chain activity and increased short trading positions, indicating bearish market sentiment.
FXStreet offers insights based on expert analysis and emphasises that information should not be interpreted as investment advice. The platform underlines the importance of personal research before making investment decisions, acknowledging the risks associated with trading in open markets.
Singapore PMI and Global Demand Implications
Singapore’s manufacturing PMI at 50.1 signals continued stagnation, marking the fourth straight month hovering around the neutral 50 mark. This sluggishness in a key Asian trade hub suggests global demand remains weak. For us, this reinforces the appeal of holding assets in economies showing more resilience.
The US Dollar remains the dominant force, with the Dollar Index (DXY) now pushing above 112, levels we have not consistently seen since the highs of late 2022. This strength is directly tied to a hawkish Federal Reserve, especially as the latest Core PCE inflation data came in at 3.1%, well above their target. We should expect this trend to continue as long as the Fed prioritizes fighting inflation.
Consequently, we see the EUR/USD struggling near three-month lows, with little to suggest a reversal. Similarly, GBP/USD is vulnerable ahead of the Bank of England’s decision this week, where markets are pricing in a 75% chance of a hold due to a fragile UK fiscal situation. Buying put options on these pairs could be a prudent way to position for further dollar gains.
Gold’s inability to firmly hold the $4,000 level is a clear warning sign for bulls. The combination of a strong dollar and rising US Treasury yields creates a significant headwind for the non-yielding precious metal. We believe selling call options above this key psychological level could be an effective strategy to capitalize on this capped upside.
We are also seeing signs of stress in risk assets, with speculative fervor in meme coins fading and broader equity indices lagging a handful of tech giants. This narrow market leadership often precedes periods of higher volatility. Therefore, traders should consider buying protection, such as put options on the S&P 500, to hedge against a potential market pullback in the coming weeks.
