Crude oil stocks in the United States decreased by 2.48 million barrels for the week ending November 28. This is a bigger drop compared to the previous week’s decrease of 1.9 million barrels. The US Dollar Index fell to about 99.20 right before key US economic data was released. The Australian Dollar stayed strong despite a weak Q3 GDP, backed by the Reserve Bank of Australia’s position.

Oil and Metals Market Overview

In the oil and metals markets, WTI crude oil prices were lower, while silver remained stable below $58.00. The NZD/USD pair gained strength, reaching nearly 0.5750, thanks to positive Chinese PMI figures and speculation about potential rate cuts by the Federal Reserve. In currency trading, the EUR/USD rose by 0.12% during late Tuesday’s North American session. Meanwhile, GBP/USD held around 1.3200 as traders anticipated possible interest rate cuts. Gold prices climbed above $4,200, as investors prepared for upcoming US economic data. In the cryptocurrency market, altcoins such as Pudgy Penguins and Pump.fun saw double-digit gains as Bitcoin exceeded $92,000. Market trends are influenced by the broader economy and potential changes in US government policies regarding tariffs and Supreme Court rulings. The crude oil market is sending mixed signals, indicating potential volatility. The larger-than-expected inventory drop of 2.48 million barrels usually supports higher prices. However, WTI remains below $58.50, suggesting that concerns over Eastern Europe are weighing on the market more heavily at this time.

Impact of the US Dollar and Federal Reserve Speculation

The US Dollar, trading weakly around 99.20, will be a key factor in the coming weeks. This weakness stems from widespread anticipation that the Federal Reserve will cut interest rates soon. We should closely monitor the upcoming ADP jobs data and ISM Services PMI reports. A disappointing ADP report, similar to October 2025’s, which noted a cooling to 113,000 jobs, would likely secure a rate cut. This weaker dollar environment is why gold is trading strongly above $4,200 an ounce. With silver also nearing record highs around $58.50, the trend for precious metals is clearly upward. Traders might consider using call options to maximize gains while managing their risk, as this momentum is closely linked to the Fed’s expected actions. In the cryptocurrency realm, institution demand is rising now that Bitcoin has crossed $92,000. The recent approval of Vanguard ETFs has led to a new wave of investments, similar to the surge after the initial spot ETFs were approved in early 2024. While the outlook is positive, the current price movements bring significant volatility, making it essential to use futures with clear stop-loss orders to manage risk effectively. Overall, the market is unified by the idea of a dovish Fed, leading to correlated trades across different assets. However, traders should be cautious. Any unexpectedly strong US economic data could quickly reverse these trends. With the VIX, a measure of market volatility, steady at around 16 for the last quarter, any surprising economic news could lead to significant spikes that might catch traders off guard. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now