Singapore’s industrial production increased by 14.3% year-on-year in November, surpassing the expected 14.2% growth. This performance reflects ongoing economic developments and their impact on industrial sectors in the region.
Trading dynamics have been observed with USD/CAD nearing five-month lows amid a policy divergence between the Bank of Canada and the Federal Reserve. Gold retreated from its record highs and fell below $4,500, influenced by profit-taking and subdued trading volumes ahead of the holiday season.
Cryptocurrency Market Trends
Bitcoin is trading around $86,770 after not breaking the $90,000 resistance, following a $188.64 million outflow from ETFs. Avalanche remained around $12 after Grayscale’s updated filing for an ETF conversion with the US Securities and Exchange Commission.
Looking ahead to 2026, an economic outlook indicates potential for robust performance, with supportive factors from 2025 expected to persist. This projection comes amidst the broader context of a resilient global economy, emphasising economic trends and forecasts for upcoming years.
Finally, a review of potential brokers highlights various aspects and considerations for trading in 2025 across different regions and assets. This includes evaluations of brokers with low spreads, high leverage, and those providing the Metatrader 4 platform.
We see the US Dollar showing weakness due to growing expectations of Federal Reserve easing in early 2026. November’s US inflation data from earlier this month showed the Consumer Price Index had fallen to 2.8%, supporting the case for rate cuts. This environment suggests we should consider derivative strategies that benefit from a declining dollar, such as buying calls on currency-hedged international ETFs.
Gold Market Analysis
The pullback in gold from its recent all-time high above $4,500 appears to be a temporary pause driven by thin holiday trading. We have seen similar patterns in past years, like in late 2020, where consolidation preceded a significant rally fueled by accommodative monetary policy. This suggests buying call options on dips could be a good way to position for a move higher in the first quarter of 2026.
With forecasts for the S&P 500 looking positive for 2026, we should prepare for continued strength in equities. The Volatility Index (VIX) has been trading at a low of around 13, indicating low market fear, which makes option premiums relatively cheap. This situation is favorable for buying long-dated call options on major indices to capture the expected upside over the next year.
The strong Singapore industrial production figure of 14.3% points to broader strength we are seeing across key Asian economies. Recent purchasing managers’ index (PMI) data from across the region has consistently shown manufacturing expansion for the last four months. This reinforces the case for bullish positions on Asian markets, possibly through futures on indices like the Hang Seng or Nikkei 225.
The Canadian dollar is trading near five-month highs against the US dollar, and this trend is likely to continue. The policy divergence is clear, as the Bank of Canada has maintained a more hawkish stance compared to the Federal Reserve. We can look to sell put spreads on the USD/CAD currency pair, which is a bet that the pair will not rise significantly and may continue its slow grind lower.
