The consumer price index in Tokyo went up by 2.7% year-over-year in November, matching forecasts. Global currency shifts included the Australian dollar rising due to higher inflation and the PBOC adjusting the USD/CNY reference rate slightly upward. The NZD/USD stayed near its monthly high because of the Central Bank of New Zealand’s strict policies. The GBP/USD gained as expectations grew for US Federal Reserve rate cuts. Meanwhile, EUR/USD and gold prices remained stable, with gold benefiting from softer US Fed expectations.

Security Breach at Upbit

The article mentioned a security breach at Upbit, causing a loss of $37 million. Additionally, the market paused during the Thanksgiving holiday to assess the UK budget. Another section discussed the top brokers for 2025, evaluating factors like low spreads, regulation, and platforms. This included brokers from MENA, Latam, and Indonesia. The text ended by stressing the risks of investing and recommending thorough individual research before making financial decisions. It also clarified that neither the author nor FXStreet offers specific investment advice. Tokyo’s November inflation rate of 2.7% confirms ongoing price pressures in Japan. This is the 15th month in a row that core inflation has exceeded the Bank of Japan’s 2% target, as of November 28, 2025. With inflation steady, it’s unlikely the BoJ will ease its policies, supporting the yen.

US Federal Reserve Expectations

Meanwhile, expectations are rising for the US Federal Reserve to cut interest rates soon. The CME FedWatch Tool shows over a 70% chance of a 25-basis-point rate cut by March 2026. This gap between a steady BoJ and a dovish Fed continues to put pressure on the US dollar. In this environment, bearish derivative positions on the USD/JPY pair look promising for the coming weeks. After reaching extreme highs in 2023 and 2024, the most likely direction now appears to be downward. We could consider buying put options or using bear put spreads to prepare for a decline from its current level around 138.50. This dollar weakness isn’t isolated; we’re also seeing strength in the Australian and New Zealand dollars. Both countries’ central banks have taken a hawkish stance, creating a policy mismatch with the US. Therefore, long call options on AUD/USD and NZD/USD may be a good way to capitalize on this widespread dollar pressure. Create your live VT Markets account and start trading now.

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