Insights 
VT 
The EUR/USD experienced a decrease to about 1.1650 due to French political issues resurfacing. GBP/USD is experiencing losses below the mid-1.3400s, facing difficulties against a firmer US Dollar. Gold remains strong above $3,900, driven by a dovish Federal Reserve and safe-haven buying.
Bitcoin Outperformed by Gold
Bitcoin was outperformed by gold in Q3, with gold reaching record highs and achieving double-digit gains. Meanwhile, FXStreet has undergone a redesign to improve its editorial and business strategies. Aptos (APT) price is stabilising, supported by increased retail demand and a rise in stablecoin supply.
The recent increase in Switzerland’s unemployment rate to 3.0% is a small but important signal of economic cooling. We should view this as a potential precursor to a more dovish stance from the Swiss National Bank, especially given that they last cut rates in June 2025. This environment suggests that derivative strategies betting on Swiss Franc weakness, such as buying call options on the USD/CHF pair, could be advantageous in the coming weeks.
Political instability in France is creating clear downward pressure on the Euro, and we are seeing this reflected in the credit markets. The spread between French and German 10-year government bonds has widened to 85 basis points, a risk level we haven’t seen since the political uncertainty of 2024. Given this and the latest contractionary Eurozone manufacturing PMI of 48.5 for September, buying put options on the EUR/USD offers a direct way to position for further declines.
Opportunities in Japanese and European Markets
This European weakness is fueling a flight to safety, benefiting both Gold and the US Dollar. We see Gold approaching $3,950 an ounce, a trend supported by consistent demand from central banks, which added a net 85 tonnes to reserves in the third quarter of 2025. Traders should consider buying call options on gold futures to gain exposure to this strong upward momentum, which is likely to persist as long as geopolitical risks remain elevated.
There is a noticeable divergence between struggling European markets and a bullish Japanese market, with the Nikkei 225 targeting 49,300. This presents an opportunity for relative value trades. We believe a pairs trade, going long Nikkei futures while simultaneously shorting a European index like the Euro Stoxx 50, could perform well by capturing this difference in economic sentiment.
