Austria’s industrial production rose by 3.3% year-on-year in September, reversing a previous decline of 1.7%. This increase shows a positive shift in the country’s industrial activity. The Bank of Canada is likely to keep its interest rate steady at 2.25% after cutting rates by a quarter-point in previous months. The central bank’s monetary policy is being closely monitored.

Zcash Price Surge

Zcash (ZEC) has experienced a price jump, trading above $440 after a 30% increase this week. Rising open interest and positive funding rates suggest growing demand for this cryptocurrency. Solana (SOL) is also seeing price gains, trading between $121 and $145. Strong inflows into Solana ETFs over the past four days show that institutional interest remains strong. Gold prices are stable as traders await the results of the Federal Open Market Committee meeting. The focus will be on economic forecasts and remarks from Jerome Powell. GBP/USD has strengthened above 1.3300 as the US Dollar weakens. Traders are keenly waiting for an announcement regarding a possible rate cut from the US Federal Reserve.

Potential Federal Reserve Rate Cut

EUR/USD is steady around 1.1650 as the market braces for a potential 25 basis point rate cut from the Federal Reserve, carefully balanced by cautious support statements from the European Central Bank for the Euro. With a Federal Reserve interest rate cut widely expected today, the US Dollar is already showing signs of weakness. This move seems to be anticipated, especially after the US Core PCE Price Index fell to 2.5% in the November 2025 report. The statement from the Fed and Powell’s comments will be crucial in the following weeks. Traders should consider using options to manage potential volatility from the FOMC announcement. Buying straddles on major pairs, such as EUR/USD, could yield profits from significant movements in either direction, regardless of whether the Fed indicates further cuts or a pause. The market’s response to the Fed’s “mid-cycle adjustment” in 2019 emphasized the importance of forward guidance over the cut itself. In Europe, Austria’s strong industrial production points to a positive trend. The Eurozone Manufacturing PMI rose above 50.0 for the first time in over a year, indicating that the economic slowdown of late 2024 and early 2025 may be bottoming out. This divergence between a slowing US economy and a recovering Europe could favor the Euro. One way to benefit might be to invest in EUR/USD call options, which would profit from a stronger Euro against a weakening Dollar. The Bank of Canada’s decision to pause its rate cuts further highlights a growing gap in central bank policies worldwide. In the crypto markets, there is a strong risk-on sentiment, particularly with Zcash and Solana. The consistent inflows into Solana ETFs are significant, showing robust institutional demand following the early 2025 wave of spot crypto ETF approvals. This steady buying provides a solid foundation for the asset. For traders interested in this market, the high bullish bets suggest continued upward movement. Using call options on ZEC or SOL can offer exposure to possible gains while capping risk in this volatile space. The positive funding rates on perpetual futures also imply that the market expects price increases soon. Gold is currently stabilizing around the $4,200 mark as it awaits the Fed’s decision. A dovish stance from Powell could spark significant movement, as lower interest rates make holding non-yielding assets like gold more attractive. The current tight trading range may signal a breakout is on the horizon. Create your live VT Markets account and start trading now.

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