Mexico’s retail sales for October rose 0.4% from the previous month, surpassing the expected increase of 0.3%. This points to strong consumer spending and a continuing economic recovery in the area. The European Central Bank (ECB) and the Bank of England (BoE) recently announced changes to interest rates, which affected the forex markets. The ECB decided to keep rates steady and improved its growth forecasts, whereas the BoE lowered rates. These actions influence the EUR/USD and GBP/USD currency pairs.

Gold Prices Surge

Gold prices are nearing $4,350 due to various global economic factors. Meanwhile, cryptocurrencies are reacting differently; Bitcoin and Ethereum remain stable, while XRP experiences some volatility. The surprisingly high retail sales in October highlight the strength of the Mexican consumer. As of December 18, 2025, Banxico has maintained its key interest rate at 10.5% to tackle ongoing inflation. This situation suggests that the Mexican Peso (MXN) may strengthen against currencies that are less aggressive with their monetary policy. Traders should monitor the peso’s stability, especially if year-end consumer data backs this trend. The current policy differences between the ECB and the BoE present a clear opportunity. The BoE has cut rates to support a UK economy that grew just 0.1% in Q3, while the ECB focuses on a stubborn core inflation rate of 3.1%. This may make long positions on EUR/GBP futures a promising strategy in the upcoming weeks.

Global Economic Unease

Gold nearing $4,350 signals concerns about the global economy and changes in monetary policy. This upward movement builds on momentum from the inflationary period of 2023 and 2024, now driven by the BoE’s rate cut and speculation that the US Federal Reserve may follow suit. Traders in derivatives might consider call options to benefit from further price increases, as lower interest rates generally weaken currencies and boost hard assets. In the cryptocurrency field, the stability of Bitcoin and Ethereum suggests the market is solidifying after a big rally. Much of this strength likely stems from the cycle after the Bitcoin halving event in April 2024. Therefore, range-bound strategies like selling strangles on BTC or ETH options, set to expire in January, might effectively capture premiums while the market reacts to its recent gains. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now