Spain’s current account balance for November dropped to €0.21 billion from €7.18 billion the month before. This marks a significant decline in Spain’s economic activity with the outside world. In the currency market, the Euro is struggling despite strong GDP reports from Germany and the Eurozone. The US Dollar is gaining strength, fueled by recent political events in the United States, including a Senate deal to avoid a government shutdown.

Gold Prices Near a Critical Level

Gold prices are falling and are now close to $5,000 as the US Dollar gains strength. The upcoming announcement of a new Federal Reserve Chair is expected to affect market trends. Cryptocurrencies like Bitcoin, Ethereum, and Ripple have seen notable price drops. Bitcoin is nearing its November low of $80,000, Ethereum is below $2,800, and Ripple continues to decline amidst negative market sentiment. Stellar has also declined, reaching levels not seen since mid-October, due to increased negative sentiment and waning interest in derivatives trading. Microsoft faced a significant decline in market value after its earnings report, impacting related stock indices. Spain’s current account balance has worsened severely, dropping from a €7.18 billion surplus to just €0.21 billion in November 2025. This sharp decline breaks a multi-year trend of healthy surpluses, according to Eurostat data from 2023 and 2024, which were crucial for the country’s economy. This hints at underlying weaknesses for the Euro, making put options on the EUR/USD pair appealing.

Effect of a Strong US Dollar

The US Dollar is currently the main influence in the market, pushing down the Euro and Pound. The previous year’s deal to prevent a US government shutdown has eliminated a key uncertainty. Now, all eyes are on the new Federal Reserve Chair. Markets seem to expect a more aggressive approach, which could raise interest rates and strengthen the dollar in the coming weeks. We should keep a close eye on the tech sector after a significant sell-off in Microsoft shares. The $400 billion drop in market value in a single day is among the largest ever recorded, raising deep concerns among investors that may affect other major tech companies. This situation suggests that protective puts on Nasdaq-100 index futures could be a wise safeguard against possible losses. The decline in gold prices toward $5,000 is closely linked to the strong dollar. Historically, during periods of dollar strength like we saw in late 2024, gold faces pressure. Given this trend, traders might consider shorting gold futures or buying puts on gold ETFs, targeting that $5,000 level as a psychological benchmark. The cryptocurrency markets are showing clear bearish control, with Bitcoin, Ethereum, and others continuing their sell-off. With Bitcoin nearing its November 2025 lows around $80,000, the most likely direction appears to be downward. We recommend avoiding long positions and may even consider shorting crypto futures, as negative funding rates suggest that professional traders expect prices to fall further. Create your live VT Markets account and start trading now.

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