Colombia’s Consumer Price Index (CPI) for November rose by 0.07% month over month. This figure was below the expected increase of 0.2%.<\/p>\n
The FXStreet team also provided additional market updates. The EUR\/USD pair fell towards 1.1630 due to a mild upswing in the US Dollar.<\/p>\n
The GBP\/USD pair retreated to the 1.3320 mark following a brief bullish moment in the US Dollar. Gold prices shifted back to $4,200 per troy ounce amidst a strengthening in US Treasury yields.<\/p>\n
Bitcoin maintained stability above $91,000, while Ethereum remained above $3,100. Both cryptocurrencies appeared optimistic ahead of the Federal Reserve’s upcoming policy meeting.<\/p>\n
Ripple’s decline extended for a second day, trading at $2.06, even with ongoing inflows into XRP spot ETFs. The article also mentioned upcoming monetary policy meetings from other major banks including RBA, BoC, and SNB.<\/p>\n
In 2025, it is suggested that traders consider brokers based on low spreads, leverage options, and trading platforms. The information discussed by FXStreet focuses on general market insights and not specific investment advice.<\/p>\n
With the Federal Reserve’s meeting just days away on December 10, we see the market has overwhelmingly priced in a rate cut. This suggests that straightforward long positions are crowded, and traders should consider options strategies that benefit from a volatility spike if the Fed\u2019s forward guidance is less dovish than expected. Historically, markets can react poorly to a “hawkish cut,” a pattern we observed in late 2018 when a rate cut was accompanied by a cautious outlook.<\/p>\n
We anticipate the US Dollar’s weakness will persist if the Fed delivers the expected dovish message. The U.S. Dollar Index (DXY) has already fallen over 5% in the last quarter, a trend that supports holding call options on assets like gold, which is trading firmly above $4,200 an ounce. Given gold’s sharp 18% rally in 2025, using some premium to buy protective puts could be a prudent way to hedge against a sudden reversal on a hawkish surprise.<\/p>\n
The lower-than-expected inflation in Colombia is a significant local factor that fits the global disinflation narrative. This 0.07% reading puts pressure on the Banco de la Rep\u00fablica to consider its own rate cuts in early 2026, a move that would likely weaken the Colombian Peso. We expect traders to begin positioning for this by buying call options on the USD\/COP pair.<\/p>\n
This broader risk-on sentiment continues to lift equities and crypto assets, with Bitcoin’s recent surge past $90,000 demonstrating the market’s high sensitivity to liquidity expectations. The cooling US PCE inflation data solidifies these rate cut hopes, making call options on the Dow Jones a viable strategy. We believe this momentum will carry into the Fed’s announcement next week.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Colombia\u2019s CPI rose 0.07% in November; USD strength affected forex, crypto remained optimistic pre-Fed.<\/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-36185","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\/36185","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=36185"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36185\/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=36185"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=36185"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=36185"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}