In November, Brazil’s industrial output stayed at 0%, which was below analysts’ expectations of a 0.2% increase. This stagnant performance raises concerns about the growth of the industrial sector. The US dollar has strengthened, affecting various currency pairs like GBP/USD and EUR/USD. The EUR/USD pair is currently around 1.1670. This stronger dollar is also impacting commodities, notably gold, which has dropped to roughly $4,430 per troy ounce.

Cryptocurrency Update

In the cryptocurrency market, Pi Network is seeing a downward trend as sellers dominate. About 1.90 million PI tokens were traded on centralized exchanges in just 24 hours. Although there was a recent 2% drop in price, it is still trading slightly above $0.2000. Looking ahead to 2026, the economic conditions we see in 2025 will continue to shape the landscape. Traders and investors are being careful due to possible changes in the global market. Brazil’s flat industrial output for November 2025 is concerning, hinting at a possible economic slowdown as we enter the new year. This follows a weak fourth quarter where the manufacturing sector shrank by 0.5%. We should be cautious about taking long positions on the Brazilian Real (BRL) since this weakness might persist.

US Dollar Strength

Currently, the main trend is the strength of the US dollar, pushing EUR/USD and GBP/USD to multi-day lows. Recent data shows initial jobless claims are stable at around 215,000, indicating a strong US labor market supporting the dollar. This positive sentiment for the dollar is influencing the currency markets significantly. All eyes are on tomorrow’s US Non-Farm Payrolls report, which is a key event to watch. Following several policy changes by central banks in 2025, this jobs report will be important for predicting the Federal Reserve’s future actions. A strong report, which many analysts expect, could lead to further gains for the dollar. Gold is under pressure due to both the stronger dollar and rising bond yields. The US 10-year Treasury yield has risen back toward 3.95% this week, making gold, which does not yield interest, less appealing. If yields keep climbing, gold may test lower support levels. After a stable 2025, we are now entering a cautious period of normalization. The shocks we experienced last year are not expected to be repeated, but we should remain alert. We will see if the resilience from 2025 continues into the first quarter of this new year. Create your live VT Markets account and start trading now.

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