The Eurozone Producer Price Index rose by 0.5% in November, beating the expected increase of 0.2%. This growth shows a positive change in production costs in the Eurozone for the month, compared to earlier forecasts. Gold prices continue to drop, closing below $4,450 as traders take their profits. The drop in gold is not due to any major changes but reflects a trend seen in recent trading sessions.

Pi Network Shows A Bearish Trend

The Pi Network is currently experiencing a bearish trend, trading above $0.2000 after nearly a 2% decrease. The transfer of 1.90 million PI tokens to centralized exchanges reflects a cautious attitude among holders. Looking ahead to 2026, predictions indicate that economic caution will likely continue after the shocks of 2025, though not as severe. Various brokers are preparing for 2026, offering services across different financial markets to support traders. FXStreet advises that market analysis should involve personal research since it may contain forward-looking statements that carry risks. Traders should not base their decisions solely on their content, as they do not offer personalized advice or guarantees. The November increase in the Eurozone producer price index is a crucial signal for inflation that should not be overlooked. It suggests that price pressures are still present, which could complicate the European Central Bank’s policies. This data raises concerns about the market’s expectation of a smooth decline in inflation throughout 2026.

Risk Averse Mood Fueled By Uncertainty

Uncertainty is creating a risk-averse mood, strengthening the US Dollar and pushing currency pairs like EUR/USD down toward 1.1670. In 2025, the policy gap between a strong US economy and a weaker Eurozone was a major theme, and this latest PPI figure indicates that this trend may continue, making it risky to bet against the dollar in the short term. All eyes are now on the upcoming US Nonfarm Payrolls (NFP) report, which will influence the market in the coming weeks. The US labor market has consistently exceeded expectations, with job growth in late 2025 averaging over 200,000 jobs per month, which keeps the Federal Reserve on alert. A strong report would reinforce the dollar’s strength and could lead to further profit-taking in assets like gold. In this cautious market, we should consider getting protection against potential losses. Implied volatility, measured by the VIX index, has been rising from the calmer levels of the second half of 2025, recently nearing 17. Using put options on major indexes or currency pairs like GBP/USD can effectively hedge existing long positions. For more direct strategies, focusing on a strong dollar could be advantageous. This might involve buying put options on EUR/USD or creating bearish credit spreads. With USD/JPY stabilizing around 156.70, range-bound strategies, like iron condors, may also work well, but it’s wise to keep positions light before the NFP release. Create your live VT Markets account and start trading now.

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