India’s M3 money supply recorded a rise to 9.9% in November, slightly up from 9.8% previously. This follows a trend of increasing economic indicators in the region.<\/p>\n
In global currency markets, EUR\/USD showed gains, reaching 1.1630 due to anticipated Federal Reserve actions. The Federal Reserve is expected to announce a 25 basis point interest rate cut, reflecting ongoing fiscal policy changes.<\/p>\n
In trading, GBP\/USD surpassed the 1.3300 mark, bolstered by selling pressures on the US Dollar. Meanwhile, Gold remained steady at around $4,200 as markets brace for the Federal Reserve’s interventional moves.<\/p>\n
Cryptocurrency markets exhibited mixed performances, with Bitcoin maintaining levels above $92,000. Ethereum showed bullish tendencies, while XRP continued to face downward pressure.<\/p>\n
Broker selections for 2025 are under focus, with various categories highlighted for potential traders. These include forex, CFD, and region-specific brokers, offering different benefits and drawbacks.<\/p>\n
Investors are advised to conduct diligent research before engaging in market activities, considering the inherent risks. FXStreet emphasises the necessity of informed decisions amidst evolving market conditions.<\/p>\n
We see the market has already priced in the expected 25 basis point cut from the Federal Reserve. The real focus should be on the “divisive” nature of the meeting, which suggests uncertainty in the Fed’s forward guidance. This points to a potential spike in volatility, making options strategies like straddles on the S&P 500 attractive to capture any sharp post-announcement move.<\/p>\n
The anticipated rate cut is putting clear pressure on the US Dollar, which we see firming up the EUR\/USD and GBP\/USD pairs. We remember how the dollar index (DXY) dropped over 4% in the final months of 2023 when the market first began pricing in a policy pivot. Derivative traders might consider buying call options on currency ETFs like FXE (Euro) to leverage a similar potential decline in the dollar over the coming weeks.<\/p>\n
With gold holding strong around $4,200, a dovish Fed and a weaker dollar create a supportive environment for the metal. We see this as an opportunity to use gold futures or call options on gold miners ETFs to gain upside exposure. Recent Q3 2025 data showing persistent central bank buying provides a fundamental tailwind that could propel prices higher into the new year.<\/p>\n
While lower rates are typically bullish for equities, we must consider the reason for the cut. The latest November jobs report showed a modest cooling in the labor market, with payrolls coming in at 155,000, just below expectations. This suggests being selective, perhaps using derivatives to favor defensive sectors over high-growth tech until the economic picture is clearer.<\/p>\n
The slight increase in India’s M3 money supply to 9.9% shows underlying liquidity in a key emerging economy. A dovish Federal Reserve and a weaker US dollar typically benefit emerging markets by easing financial conditions and attracting capital inflows. We saw a similar dynamic fuel a rally in emerging market indexes during the first half of 2024, suggesting traders could look at options on ETFs like INDA for exposure.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" India’s M3 money supply rises; global currencies, gold, and crypto show mixed trends amid Fed expectations.<\/p>\n","protected":false},"author":62,"featured_media":17021,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36499","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\/36499","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=36499"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36499\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17021"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=36499"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=36499"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=36499"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}