Inflation in Mexico was recorded at 3.57% in October, just above the expected 3.56%. Recent market changes have included shifts in currency exchange rates and consumer sentiment.

Currency Exchange Movements

The EUR/USD exchange rate is rising due to a decline in the US Dollar, influenced by recent consumer sentiment data. The GBP/USD also increased beyond 1.3160 as the US Dollar struggled further. Gold is holding steady near $4,000 due to changes in the US Dollar and Treasury yields. Dogecoin has stabilized at $0.1600, with market shifts expected as a Bitwise Dogecoin ETF launch approaches. Looking ahead, the economic situation is tense, with the potential for changing risk sentiment from recent market events. Upcoming central bank meetings may influence market conditions, especially for Australian and British currencies. By 2025, various brokers will offer different trading options, including low spreads and high leverage. These brokers serve different regions and account types, each with its strengths and weaknesses. FXStreet provides helpful insights but highlights risks and uncertainties. The information is meant for informational purposes only and does not recommend any buying or selling actions. Always conduct thorough research before making investment decisions.

Economic Indicators and Predictions

The recent drop in the University of Michigan Consumer Sentiment to 50.3 is significant for the US economy, marking levels not seen consistently since the 2022-2023 downturn. This weak data follows the Federal Reserve’s rate cut in October 2025, strengthening arguments for further easing. Futures markets now suggest over a 60% chance of another rate cut by January 2026, which could put pressure on the dollar. Given this context, long positions on the euro and pound seem attractive against the dollar. We should consider buying call options on EUR/USD, especially as it approaches the important resistance level of 1.1600. While GBP/USD is also rising due to dollar weakness, caution is advised as the Bank of England’s dovish signals could create volatility after its upcoming meeting. The combination of a weaker dollar and falling US Treasury yields presents a strong case for gold. The metal is nearing the crucial $4,000 per ounce mark, a significant psychological barrier that it has yet to breach. Using bull call spreads on gold futures could be a strategic way to capitalize on a potential breakout in the coming weeks. In more speculative arenas, the anticipated launch of a spot Dogecoin ETF in about 20 days is an event to watch. Similar launches of spot Bitcoin ETFs in 2024 triggered significant price increases leading to their approval. Buying call options could be a strategic move to act on the “buy the rumor” strategy before late November. Additionally, inflation in Mexico was slightly higher than expected. With the Bank of Mexico maintaining its key interest rate at 9.5% for over a year, this persistent inflation suggests they are unlikely to cut rates before the Federal Reserve does. This scenario enhances the attractiveness of the profitable carry trade, likely by shorting the USD/MXN pair. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now