The United States Producer Price Index (PPI) excluding food and energy rose to 2.9% year-on-year in October, up from the previous 2.6%. This information is intended purely for informational purposes and should not be considered as investment advice. <\/p>\n
Additional market developments include the climb in WTI prices to their highest since late October due to unrest in Iran. The NZD\/USD edged higher due to positive Chinese trade data, though gains were limited by a strong US dollar.<\/p>\n
Various experts, including the Fed’s Bostic and Kashkari, have noted ongoing challenges with inflation. The Bank of England’s Ramsden reports a weakening labour market.<\/p>\n
For those interested in financial trading in 2026, top brokers for forex, gold, and various regional markets are discussed. The article cautions that investing in open markets carries risks, including potential losses.<\/p>\n
FXStreet reminds readers to conduct their own research before making any investment decisions. They disclaim responsibility for potential errors or omissions in the information provided.<\/p>\n
We saw the Producer Price Index data from last October show a jump to 2.9%, which, along with hawkish comments from Fed officials, created concern about inflation. However, the most recent Consumer Price Index report for December 2025, released just this week, showed inflation easing to 3.1%, down from the prior month. This shift suggests the narrative of ever-rising inflation from late last year is losing momentum.<\/p>\n
Given the cooling inflation data, the market is now pricing in a more dovish Federal Reserve policy for later this year. Looking back, we recall the certainty in November 2025 that rates would stay high, but futures markets now show a probability of over 60% for at least one rate cut by the third quarter of 2026. This makes positioning for lower interest rates via SOFR futures or call options on Treasury bond ETFs a logical strategy for the coming weeks.<\/p>\n
Volatility in the equity markets has also compressed, with the VIX index falling from its highs above 18 last quarter to a more subdued level around 14. This environment makes buying options cheaper than it was just a few months ago. We see this as an opportunity to purchase call options on major indices to capture potential upside if the market continues to rally on the “soft landing” narrative.<\/p>\n
The US Dollar, which was quite strong through much of 2025, has started to weaken on the changing interest rate outlook. The Dollar Index (DXY) is down more than 3% from its November 2025 peak, and this trend is likely to continue if inflation data stays soft. Derivative traders should consider strategies that benefit from this, such as buying call options on currency pairs like the EUR\/USD or GBP\/USD.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US core PPI rose 2.9% in October; WTI climbs, NZD\/USD edges higher; experts warn on inflation.<\/p>\n","protected":false},"author":62,"featured_media":17024,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-39141","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\/39141","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=39141"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39141\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17024"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=39141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=39141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=39141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}