Switzerland’s SVME Purchasing Managers’ Index exceeded expectations with a reading of 48.2 in October, beating the forecast of 47.5. This reflects a slight improvement in Swiss manufacturing activity.

Meme coins like Dogecoin, Shiba Inu, and Pepe are under pressure, with data indicating a decrease in risk exposure from both large wallets and retail holders. Cardano (ADA) saw a price drop of 6%, continuing a recent downward trend due to weak on-chain activity and increased short positions.

Global Markets Cautious

Global markets remain cautious despite factors such as a Federal Reserve rate cut and strong corporate earnings. The US Dollar remains strong, while Gold trades around $4,000 amidst comments from Fed officials and rising Treasury yields.

GBP/USD stays low near the mid-1.3100s, struggling to regain investor confidence due to UK fiscal issues, despite the US Dollar’s stabilization following a Fed-induced rally. The EUR/USD faces pressure as it approaches 1.1500, its lowest since August, impacted by the US Dollar’s broad-based strength with attention on upcoming US economic data.

Given the US Dollar’s current strength, we believe the path of least resistance for major currency pairs is downward. The recent US inflation report, which showed Core CPI still stubbornly high at 3.8% in October 2025, supports the Fed’s hawkish stance. We should therefore consider buying put options on the EUR/USD, especially as it approaches the 1.1500 level, a psychological support that could soon break.

The situation with Pound Sterling is particularly concerning due to the UK’s ongoing fiscal issues, with debt-to-GDP ratio having climbed to 105%, a figure not seen since the post-WWII era. Ahead of next week’s Bank of England meeting, volatility is expected to rise, making a long straddle a viable strategy to profit from a large price move in either direction. However, given the underlying weakness, we are leaning towards purchasing puts on GBP/USD to hedge against further declines below the 1.3100 handle.

Gold Stability Opportunity

Gold’s stability around the $4,000 mark presents a unique opportunity for income generation in what has become a sideways market. We’ve seen this consolidation happen before, like the period in 2023 when gold hovered around $2,000 before its next major leg up. Selling out-of-the-money call and put options (a short strangle) could allow us to collect premium, betting that hawkish Fed talk and high US 10-Year Treasury yields, now at 4.9%, will keep the metal range-bound.

In the cryptocurrency space, the signals are clearly bearish, and we must act accordingly. On-chain data shows a 15% increase in the supply of Cardano on exchanges over the past month, indicating holders are preparing to sell. We see value in building short positions through perpetual futures on assets like ADA and meme coins, or buying puts on broad crypto-tracking ETFs.

While the Swiss manufacturing PMI beat expectations, it remains below the 50 level, signaling contraction for the fifth straight month. This slight positive surprise is not enough to alter our view of a fragile European economic landscape. It simply reinforces the bearish divergence between the US and European economies, further supporting our short EUR positions.

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