Australia’s Westpac Leading Index for November reported a decline, moving from 0.11% to -0.04%.<\/p>\n
In currency markets, EUR\/JPY remains below 182.00 due to Japan\u2019s trade balance data, and GBP\/USD rises above 1.3400, benefitting from positive UK PMI data. Gold prices rose to seven-week highs, supported by signs of a cooling US labour market, which might influence future US Federal Reserve rate cuts.<\/p>\n
Top cryptocurrencies like SPX6900, Pi Network, and Filecoin showed gains, predicting a potential market rally. In commodities, the price of gold has seen fluctuations amid discussions on peace between Ukraine and Russia.<\/p>\n
BNB’s price fell below $855, with bearish trends influenced by its on-chain and derivative activity suggesting increased retail interest. Meanwhile, the FXStreet team emphasises that any forward-looking statements carry risks and uncertainties, with all market information intended for informational purposes only, rather than as investment recommendations.<\/p>\n
It is advised to conduct thorough research before making investment decisions. The FXStreet editorial cautions readers regarding investment risk, including potential total loss, but takes no responsibility for errors or omissions in the provided information. Legal protections and disclaimers apply to all published content.<\/p>\n
The Westpac Leading Index for Australia turning negative is a significant signal of a coming economic slowdown. We should view this as a clear indicator to establish short positions on the Australian dollar, likely through put options or futures contracts. This outlook is supported by data from the Australian Bureau of Statistics showing that Q3 2025 GDP growth slowed to just 0.2%, and recent drops in iron ore prices, a key export, reinforce this bearish view.<\/p>\n
The primary market driver will remain the weak US Dollar, with the DXY holding precariously around 98.30. We anticipate this weakness will persist into the new year as traders continue to price in aggressive Federal Reserve rate cuts for the first half of 2026. This sentiment was solidified after the November 2025 US jobs report showed wage growth cooled to its slowest pace in two years.<\/p>\n
This environment is extremely bullish for precious metals, where gold has already hit seven-week highs. We should consider buying call options on both gold and silver to capitalize on further US dollar weakness and falling real yields. This market behavior is reminiscent of the market action we saw back in late 2023 when the market first began anticipating a Fed policy pivot.<\/p>\n
With the dollar under pressure, currencies like the Euro and Pound are likely to continue their ascent. Given the EUR\/USD is steadying for a move higher and UK PMI data remains optimistic, going long on both pairs using futures is a straightforward strategy. As of this week, positioning data from the CFTC shows that speculative net-long positions in the Euro have increased for the fourth consecutive week.<\/p>\n
Finally, as we head into the holiday period, market liquidity will thin out, potentially exaggerating any moves. Given the underlying geopolitical tensions mentioned, it is wise to protect our portfolios from unexpected volatility spikes. Purchasing out-of-the-money VIX call options with a January 2026 expiration could provide an inexpensive hedge against any sudden market shocks.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Gold climbs to seven-week highs; EUR\/JPY, BNB down; cryptocurrencies gain amid investor caution over risks.<\/p>\n","protected":false},"author":62,"featured_media":17026,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-37045","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\/37045","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=37045"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/37045\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17026"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=37045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=37045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=37045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}