Australia’s Westpac Leading Index for November has dropped from 0.11% to -0.04%. In currency markets, EUR/JPY is below 182.00 due to Japan’s trade balance data. Meanwhile, GBP/USD has risen above 1.3400, benefiting from positive UK PMI data. Gold prices have climbed to seven-week highs, driven by signs of a cooling US labor market, which could affect future rate cuts by the US Federal Reserve.

Cryptocurrency Market Predictions

Leading cryptocurrencies like SPX6900, Pi Network, and Filecoin have shown gains, suggesting a possible market rally. In commodities, gold prices have fluctuated amid discussions about peace between Ukraine and Russia. BNB’s price has fallen below $855, with negative trends due to on-chain and derivative activity indicating growing retail interest. The FXStreet team highlights that forward-looking statements involve risks and uncertainties. All market information is for informational purposes and should not be seen as investment advice. It’s important to do thorough research before making investment choices. The FXStreet editorial warns about investment risks, including the possibility of total loss, and does not take responsibility for any inaccuracies in the information provided. Legal disclaimers apply to all published content. The Westpac Leading Index turning negative is a strong sign of an upcoming economic slowdown. This suggests we should consider selling the Australian dollar through put options or futures contracts. Data from the Australian Bureau of Statistics shows Q3 2025 GDP growth slowed to just 0.2%, and the recent decline in iron ore prices, a key export, reinforces this negative outlook.

Weakness in the US Dollar

The weak US Dollar will remain the main market driver, with the DXY hovering around 98.30. We expect this weakness to continue into the new year as traders factor in aggressive rate cuts from the Federal Reserve in the first half of 2026. This view was strengthened after the November 2025 US jobs report indicated that wage growth slowed to its lowest in two years. This situation is very favorable for precious metals, with gold already hitting seven-week highs. We should consider buying call options on both gold and silver to take advantage of further US dollar weakness and declining real yields. This market behavior is similar to what we experienced in late 2023 when the market first began expecting a shift in Fed policy. With the dollar under pressure, currencies such as the Euro and Pound are likely to continue rising. As EUR/USD stabilizes for a potential increase and UK PMI data remains positive, going long on both pairs using futures is a simple strategy. Recent CFTC positioning data shows that speculative net-long positions in the Euro have risen for the fourth consecutive week. As we approach the holiday season, market liquidity will be low, which could amplify any market movements. Considering the ongoing geopolitical tensions, it’s wise to protect our portfolios from sudden volatility. Buying out-of-the-money VIX call options expiring in January 2026 could provide a cost-effective hedge against unexpected market shocks. Create your live VT Markets account and start trading now.

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