In November, total net Treasury International Capital (TIC) flows in the United States rose to $212 billion, a big improvement from a previous negative figure of $37.3 billion. This marks a significant change in the financial scene and shows how capital is moving within the country. In the currency market, the USD/CNY reference rate adjusted slightly to 7.0078, up from 7.0064. The AUD/USD remained steady around 0.6700, influenced by the cautious stance of the Reserve Bank of Australia.

Oil And Currency Movements

WTI oil prices climbed back above $59.00 as traders reacted to developments in Iran. Meanwhile, USD/JPY moved past 158.50, boosted by positive US jobless claims data, which supported the US dollar. In gold and cryptocurrency news, gold prices fell to about $4,605 as the US dollar gained strength from various economic reports. Ripple faced challenges even with its expanded licensing efforts in Europe, including preliminary approval for an Electronic Money Institution license in Luxembourg. Bitmine Immersion (BMNR) plans to invest $200 million in Beast Industries, founded by MrBeast. Investors are increasingly looking toward Asia for better returns. This month saw a significant influx of $212 billion in foreign investment into the US for November 2025, a major turnaround from the outflow of the previous month. This demand for US assets is the highest we’ve noted since the market recovery in 2022, indicating renewed confidence in US markets. The US Dollar Index (DXY) has climbed above the key 107 level, reaching a multi-month high that confirms this strong trend. This suggests that buying call options on the dollar or put options on the Euro through its ETF could be effective ways to capitalize on this momentum. Intense selling in EUR/USD and GBP/USD supports this positive outlook.

Gold And Dollar Dynamics

The strength of the dollar is putting pressure on gold, which is having trouble maintaining its value even at high prices. With implied volatility on gold options increasing, selling out-of-the-money call spreads on gold futures might be a wise strategy to take advantage of a price ceiling. We can expect this reverse relationship to persist as long as capital keeps flowing into the dollar. However, caution is necessary, as some investors are diversifying into Asian markets for returns outside the US mega-cap stocks. This indicates that holding call options on emerging market ETFs could be a smart hedge. If the dollar rally loses momentum, this rotation could increase. This movement is also supported by a growing interest rate gap between US 10-year Treasuries and German Bunds, which has reached its widest point in over 18 months. This fundamental shift makes holding dollars more appealing than keeping euros and underpins the current trend. We expect this interest rate spread to be a focal point for currency traders in the upcoming weeks. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now