Limit Up! 7 October 2025

Overnight

Economic Indicators Released Overnight

Not much again data-wise but the non-sovereign asset trade continues with the US government still shut. With Gold approaching $4,000 economists are scrambling to change their predictions higher. That's usually a sign the price will reverse, at least for the short-term.

Equities, precious metals, Bitcoin all at all time highs. Surely no central bank would cut rates?

US Equities

Breaking

France’s prime minister resigns less than a month after appointment [FT]

Takaichi Win Jolts Yen and Japanese Bonds, Triggers Stock Surge [Bloomberg]

BOJ keeps cautiously upbeat economic view, warns of wage uncertainty [Reuters]

Rising risk of undershooting would support slight cut in ECB rates, Lane says [Reuters]

Bitcoin

Very extended short term action and neutral positioning on the weekly chart below, has us unconvinced at this stage. Don’t get me wrong, we’re long and it is going a lot higher. There might be better opportunities to get in short-term. Read more

BITCOIN/USD Daily

Gold

What resistance? Straight through it like a knife through butter.

We’re not taking any money off the table, even though a consolidation or even a big drop is due soon. In fact, on a big drop we’ll add to the position.

Back to 3,750 would be a good first dip, and 3,500 at long term trend. Only below 3,310 has something changed and re-evaluation would be needed. Read more

GOLD/USD Daily

Foreign Exchange

Price hasn’t confirmed yet but the third bounce off midline of trend is a strong suggestion of trend being about to break. Now we’re hanging around resistance.

Change in USD perception is happening as YEN now is now in a weakening trend whilst the strength in AUD/USD and EUR/USD is waning. DXY is holding support in secular USD uptrend of 15 years.

All currencies are weak due to debt, debasement etc. Can’t help feeling that a strong USD would cause a lot of economic problems worldwide. And price always goes in the direction of maximum pain. Read more

USD/CAD Daily

Equities

More all time highs and still constrained by the wedge. Equity markets being dragged up by non-sovereign asset spike and hope of money printing.

When the US Govt finally reopens we’ll see a lot of data coming at us quickly.

We’re still bullish and if price can’t break higher, would still be buyers all the way down to 20,500. Read more

NASDAQ COMPOSITE Daily

Bonds

Looks like a clear break higher now as resistance is jumped. Those 3 rate cuts are driving long term yields higher as UK inflation way too high. Read more

UK 10 Year Government Bond Yield Daily

More on Substack

• Oil Update 7 October 2025
• Silver Update 7 October 2025
• AUD/USD Update 7 October 2025

Interesting

How Trump cornered Netanyahu into signing up for peace [FT]

The big red light flashing over private credit and private equity [AFR]

Economic Indicators Today