The United States ISM Manufacturing New Orders Index increased from 48.9 to 49.4 in October. This indicates a slight improvement in manufacturing activity in the US.<\/p>\n
Meanwhile, the Canadian Dollar is experiencing fresh weakness as it continues to falter. The Dow Jones Industrial Average dipped, with artificial intelligence investments impacting broader market gains.<\/p>\n
The Federal Reserve’s Cook mentioned ongoing policies aimed at easing inflation pressures. In other news, the Reserve Bank of Australia is anticipated to maintain its interest rates.<\/p>\n
The USD\/JPY traded flat near multi-month highs, while the USD\/CHF reached a three-week high amid a US Dollar strength. The EUR\/USD remains under pressure near the key 1.1500 support area due to the dollar’s recovery.<\/p>\n
In the currency market, GBP\/USD is consolidating below the 1.3150 level, affected by a stronger Greenback. Gold has slipped back toward the $4,000 mark amid rising US Treasury yields and easing trade tensions.<\/p>\n
The cryptocurrency market faces challenges, with Ripple (XRP) struggling to recover, trading above $2.40. Cardano (ADA) has fallen by 6%, trading below $0.58, indicating bearish sentiment among market participants.<\/p>\n
The rise in the ISM Manufacturing New Orders index to 49.4 is a slight improvement, but we see this as a sign of stabilization rather than a return to strong growth. This is the fifth consecutive month the index has remained below the 50-point threshold, indicating an ongoing contraction in the factory sector. Derivative traders should be cautious about being overly bullish on industrial-linked assets and consider selling call options against rallies.<\/p>\n
We believe the market is correctly scaling back expectations for a Federal Reserve rate cut, especially after October’s core inflation report last month came in stubbornly high at 3.5%. Looking at Fed Funds futures, the probability of a rate cut by March 2026 has fallen from over 50% just two weeks ago to under 20% today. This policy repricing is fueling the dollar’s strength, making long positions in U.S. Dollar Index futures an appealing strategy.<\/p>\n
With the EUR\/USD pair testing the key 1.1500 support level, traders should prepare for increased volatility. This level held firm during the summer of 2024, and a decisive break below it could accelerate selling pressure. Purchasing put options on the EUR\/USD offers a defined-risk way to profit from a potential downward move.<\/p>\n
Caution is warranted for the British Pound ahead of next week’s Bank of England meeting, with the GBP\/USD pair struggling below 1.3150. Given the UK’s recent weak retail sales data, we expect the BoE to maintain a more cautious tone than the Fed, creating a policy divergence that favors the dollar. A bear put spread on GBP\/USD could be an effective strategy to capitalize on this potential weakness while limiting the premium paid.<\/p>\n
Gold’s slide back towards $4,000 an ounce is a direct reaction to the strengthening dollar and the 10-year Treasury yield climbing back above 4.85%. This makes holding a non-yielding asset like gold more expensive. For those holding long positions, writing covered call options can be a prudent way to generate income while this pullback continues.<\/p>\n
The persistent sell-off in cryptocurrencies like Ripple and Cardano highlights a broad risk-off sentiment in the market. Data shows that open interest in perpetual futures for major altcoins has fallen by nearly 15% in the past week, suggesting traders are closing positions rather than initiating new shorts. We advise against trying to catch this falling knife; buying protective puts or simply waiting for market sentiment to shift is the safer play.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US manufacturing sees slight uptick; Dollar strengthens, pressuring currencies and gold; cryptocurrencies show bearish trends.<\/p>\n","protected":false},"author":5,"featured_media":17025,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3],"tags":[],"class_list":["post-33885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/33885","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/comments?post=33885"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/posts\/33885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media\/17025"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/media?parent=33885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/categories?post=33885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/sv-eu\/wp-json\/wp\/v2\/tags?post=33885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}