Next 6-12 months crucial for prediction platforms like Kalshi and Polymarkets
Gold Near Record High: Here Is What Drives the Surge
Gold holds steady around $3,640 per ounce, staying close to its record high. Explore our traders’ insights on what drives this trend.
- Events. US producer prices (PPI) fell unexpectedly, adding to the gold rise. Increasing geopolitical tensions, particularly in the Middle East and Ukraine, also drive investors towards gold as a safe-haven asset.
- Background. The drop in U.S. PPI and a softening labour market have raised hopes that the Federal Reserve may cut interest rates as soon as next week, starting with a 0.25% cut.
- Possible outcome. Investors will closely watch the U.S. consumer price index (CPI) report for more clues about future rate decisions.
If you’re trading gold, keep an eye on economic data like the CPI report and watch for any changes in geopolitical events. Both can heavily influence gold prices.
Euro Gains Ahead of ECB Meeting, but Things Could Change Soon
The euro rose higher ahead of the European Central Bank’s (ECB) policy meeting this Thursday. Find out how this might affect your trades—learn the details in our analysis.
- Events. The euro is rising, reaching $1.1698, as investors await the ECB’s decision. Meanwhile, Poland reported an incident involving Russian drones, further raising tensions on the eastern border of the Eurozone.
- Background. The ECB is expected to keep interest rates unchanged at 2%. Analysts are predicting a cautious tone in response to geopolitical risks and a slowing economic outlook.
- Possible outcome. If the ECB signals an end to its rate hikes and confirms its fight against inflation is over, the euro could rise further. However, ongoing geopolitical tensions may create uncertainty in the region.
Pay attention to the ECB’s statements. Any hints that the rate-hike cycle is over could push the euro higher.
USD/CAD Surges Above 1.3850: What You Need to Know
USD/CAD has risen above 1.3850, driven by the latest U.S. economic data and signs of weakness in the Canadian economy. Learn how this might impact your trades.
- Events. The US Dollar Index has risen nearly 1% from its low of 1.3725 earlier this month. Meanwhile, Canada’s slowing economy begins to show the impact of higher U.S. tariffs.
- Background. Falling oil prices—Canada’s key export—are further pressuring the Canadian dollar. Moreover, the Ivey PMI report indicated a sharp slowdown in August, falling from a healthy 55.8 in July to a near-stagnation of 50.1 in August. Canada’s also facing a jobs crisis, with its unemployment rate nearing a four-year high.
- Possible outcome. USD/CAD may continue fluctuating within a 146.000–149.000 range, with traders buying at support and selling at resistance until the pair breaks out on either side.
Keep an eye on the upcoming U.S. inflation data, as it could significantly impact expectations of a Federal Reserve rate cut and trigger significant movements in USD/CAD.