The opinions expressed in this report are those of Inspirante Trading Solutions Pte Ltd (“ITS”) and are considered market commentary. They are not intended to act as investment recommendations. Full disclaimers are available at the end of this report.
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Highlights
Upcoming economic events (Singapore Local Time):
|
Date |
Time |
Venue |
| 2025-11-03 | 23:00 | U.S. ISM Manufacturing PMI (Oct) |
| 2025-11-05 | 21:15 |
U.S. ADP Employment Change (Oct) |
| 2025-11-06 | 20:00 |
BoE Interest Rate Decision |
| 2025-11-07 | 21:30 | U.S. Nonfarm Payrolls (Oct) |
| 2025-11-13 | 21:30 | U.S. CPI (Oct) |
| 2025-11-14 | 21:30 | U.S. Retail Sales (Oct) |
| 2025-11-14 | 23:00 | U.S. Michigan Consumer Sentiment Index (Nov) |
Market snapshots
Figure 1: Nikkei 225 Index Futures (Weekly)
The Nikkei 225 index has surpassed the 52,000 level, driven by strong AI-driven inflows and broad semiconductor sector strength.
Figure 2: Soybean Futures (Weekly)
Soybean futures have broken out of a multi-month base, confirming a bullish reversal pattern following renewed U.S.-China trade commitments.
Figure 3: GBP/USD Futures
GBP/USD is teetering on the edge of a breakdown, with price action threatening to confirm a six-month double top formation.
Figure 4: EUR/GBP Futures
Sterling has also slid to its weakest level against the euro in over two years. EUR/GBP has broken key resistance on accelerating upside momentum.
Beyond the charts
AI is undoubtedly at the center of market attention. Investors are witnessing insatiable demand for powerful, high-end chips needed to fuel AI data centers. Hundreds of billions in capital expenditure are being poured into securing GPUs—without which the tech giants cannot compete in what many are calling Industry 4.0, the modern-day industrial revolution. And it’s not just a few U.S. tech behemoths. The AI boom is rippling across the entire supply chain: from GPU manufacturers and semiconductor foundries to data centers and energy providers.
This impact is global. Countries with advanced semiconductor industries are also reaping the benefits. Japan’s Nikkei 225 index recently surged past 52,000, and South Korea has emerged as one of the top-performing markets this year, with the Kospi rallying more than 80% since its early April low.
The AI frenzy has largely overshadowed other macro drivers that would typically move markets, such as the latest rate cut by the Fed and Chairman Powell’s slightly hawkish tone, or the ongoing U.S.-China tariff negotiations. In times like these, astute investors would do well not to overlook developments outside the AI narrative, where more favorable risk/reward opportunities may be found.
Take the UK, for instance. The old empire is facing challenges on multiple fronts: an ongoing immigration crisis, weak public support for major political parties and a deteriorating fiscal outlook. The Office for Budget Responsibility is expected to slash productivity growth assumptions by around 0.3%, creating a fiscal hole of over £20 billion. Chancellor Rachel Reeves has already indicated that tax hikes and spending cuts are on the table. Less than a month before the Budget on November 26, Reeves has also been caught in a housing scandal, adding further policy uncertainty and public dissatisfaction with the Labor Party.
Markets are now pricing in more rate cuts from the Bank of England. The resulting combination of political risk, shrinking rate differentials with the U.S. and eurozone and shaky investor confidence has taken a toll on the currency. The pound has weakened to critical levels against both the U.S. dollar and the euro.
Meanwhile, in one of the most overlooked asset classes, agriculture, we are finally seeing constructive price action. After a prolonged consolidation and a washout of speculative excess, prices are rebounding. Key catalysts include trade developments, such as China’s renewed commitment to purchase millions of tons of U.S. soybeans.
It’s a timely reminder: while the spotlight blazes on AI, the real opportunities may be growing quietly in the shadows.
A hypothetical guide: from ideas to application
We conclude with the following hypothetical trades:1
Case study 1: Short GBP/USD futures
If we hold a bearish view towards the British pound against the U.S. dollar, we would consider taking a short position in GBP/USD (6B) futures at the current price of 1.3167, with a stop-loss above 1.3567, a hypothetical maximum loss of 1.3567 – 1.3167 = 0.04 points. Looking at Figure 3, if the double-top is confirmed, GBP/USD futures price has the potential to drop to 1.2167, resulting in 1.3167 – 1.2167 = 0.1 points. Each GBP/USD futures contract represents 62,500 British pounds, and each point move is 62,500 USD. Micro GBP/USD (M6B) futures contract is available as well at 1/10 of the standard size.
Case study 2: Long Soybean futures
If we hold a bullish view towards soybean prices, we would consider taking a long position in Soybean (ZS) futures at the current price of 1,110, with a stop-loss below 990, a hypothetical maximum loss of 1,110 – 990 = 120 points. Looking at Figure 2, if the breakout is confirmed, soybean prices have the potential to climb to 1,400, resulting in 1,400 – 1,110 = 290 points. Each Soybean futures contract represents 5,000 bushels, and each point move is 50 USD. The Mini Soybean (XK) and Micro Soybean (MZS) futures contracts are also available 1/5 and 1/10 of the standard size, respectively.
1 Examples cited above are for illustration only and shall not be construed as investment recommendations or advice. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. Please refer to full disclaimers at the end of the commentary.
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