The United States consumer credit changed by $9.18 billion in October, falling short of the expected $10.5 billion. This change reflects a subdued consumer borrowing trend.<\/p>\n
EUR\/USD consolidated at 1.1650, influenced by US inflation and ECB factors. Meanwhile, the Canadian dollar strengthened following a positive labour report, and the Dow Jones Industrial Average increased as inflation cooled, raising hopes for a rate cut.<\/p>\n
Gold initially held strong at $4,200 but later slipped as the dollar gained after steady PCE data. The anticipation of Federal Reserve policy adjustments continues to impact market expectations, including crypto assets like Bitcoin and Ethereum.<\/p>\n
Ripple, trading at $2.06, faces ongoing bear challenges despite steady inflows into XRP spot ETFs. In 2025, traders are advised to evaluate different brokers, considering factors like low spreads, leverage, and specific trading platforms to optimise their trading strategy.<\/p>\n
The latest consumer credit report shows borrowing at $9.18 billion, falling short of the $10.5 billion expectation and signaling consumer caution. This is the third consecutive month of slowing credit growth, a pattern we have not seen since the economic turbulence of 2023. This weakness reinforces the market’s belief that the Federal Reserve must act to support the economy.<\/p>\n
With the Federal Reserve meeting on December 10, we see market pricing on Fed funds futures implying a greater than 90% probability of a 25-basis-point rate cut. This expectation is solidified by recent data showing Core PCE inflation, the Fed’s preferred gauge, cooling to 2.4% year-over-year. A rate cut is almost fully priced into the market, creating a delicate situation for the coming weeks.<\/p>\n
Given that gold has already surged to $4,200 an ounce in anticipation of the cut, outright long positions are risky. We believe traders should consider buying protective put options on gold mining ETFs to hedge against a “sell the news” event or a surprisingly hawkish tone from the Fed. This offers a defined-risk strategy if the market’s dovish expectations are not met.<\/p>\n
The US Dollar’s weakness has been the consensus trade, pushing pairs like EUR\/USD toward 1.1650. However, this positioning makes the dollar vulnerable to a sharp rebound if the Fed’s statement is less dovish than expected. We are looking at buying cheap, short-dated call options on the US Dollar Index (DXY) as a low-cost way to profit from a potential reversal.<\/p>\n
Implied volatility across major stock indices has fallen significantly, with the VIX trading near 13, reflecting market complacency ahead of the Fed’s decision. This low volatility makes option premiums relatively inexpensive. We see an opportunity in buying straddles on the S&P 500, which would profit from a large price swing in either direction after the announcement.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Consumer credit growth slowed; markets react to inflation data. Gold dips, crypto fluctuates amid policy speculation.<\/p>\n","protected":false},"author":62,"featured_media":17028,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36173","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\/en-ca\/wp-json\/wp\/v2\/posts\/36173","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=36173"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36173\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17028"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=36173"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=36173"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=36173"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}