In November, United States personal spending grew by 0.5%, aligning with expectations. This reflects no change from previous forecasts and suggests steady consumer expenditure.<\/p>\n
The USD\/JPY saw a retreat due to the weakening US Dollar, alongside factors surrounding the Bank of Japan’s decisions and Japan’s CPI data. Gold achieved a record high above $4,900 despite an atmosphere typically favourable to risks.<\/p>\n
The EUR\/USD increased, balancing against a weaker US Dollar, offsetting strong US economic figures. Concurrently, the GBP\/USD is approaching two-week highs, reaching close to the 1.3500 mark with persistent selling pressure on the Greenback.<\/p>\n
Gold, nearing a record high, continues its ascendancy amid growing global risk appetites. In cryptocurrency, Bitcoin marginally exceeds $90,000, while Ethereum trades around $3,000, showing volatility and fluctuating interest. Ripple XRP consolidates above the $1.90 short-term support level.<\/p>\n
Lastly, Donald Trump has reduced earlier threats related to NATO tariffs, improving overall market sentiment after initial escalations. Meanwhile, XRP shows resilience, holding steady above $1.90 amid continued institutional investment flow.<\/p>\n
Looking back to November 2025, we saw the US Dollar softening on the back of in-line economic data. That trend has accelerated into the new year, with the Dollar Index recently hitting a two-year low around 98.5. This points toward using options to bet on further declines against major currencies in the near term.<\/p>\n
The recent release of December’s inflation data, which showed Core PCE cooling to 2.8% year-over-year, is fueling this move. Markets are now pricing in a high probability of a Federal Reserve rate cut before the summer. We should consider derivative strategies that profit from a lower interest rate environment.<\/p>\n
This dollar weakness is lifting other currencies, just as it did when we saw the US-EU trade de-escalation last year. With EUR\/USD now pushing past 1.1800 and GBP\/USD testing 1.3650, buying call options on these pairs could be a way to ride the momentum. The backdrop remains supportive for continued strength in both pairs.<\/p>\n
Gold’s surge past $4,900 an ounce was a major signal, and it has since consolidated near the $5,000 level after hitting a new high earlier this month. Historically, a weakening dollar combined with expectations of lower rates is extremely bullish for precious metals. We should consider long futures contracts to capitalize on a potential move toward new highs.<\/p>\n
In the crypto space, the intense Bitcoin ETF selling pressure we observed late last year appears to have eased. The asset has since recovered to trade around $95,000, showing strong support after a period of volatility. Trading volatility using options straddles could be a sound strategy as the market finds its next direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US spending steady; Dollar weakens, boosting EUR, GBP, and Gold; Bitcoin tops $90K; XRP holds firm.<\/p>\n","protected":false},"author":62,"featured_media":16962,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-39883","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\/39883","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=39883"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39883\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16962"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=39883"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=39883"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=39883"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}