In July, Brazil’s IPCA inflation was 0.26%, which was lower than the expected 0.37%. Data released on December 8, 2025, shows that inflation rates are still not meeting expectations. In the foreign exchange market, the EUR/USD approached a two-week high near 1.1700. Meanwhile, the GBP/USD almost reached a three-week high close to 1.3530 due to a weakening US Dollar.

Price Movements in the Precious Metals Market

Gold prices, which had recently fallen to around $3,330, climbed back above $3,350 as pressure mounted on the US Dollar. At the same time, the value of the Pi Network dropped below $0.4000 on Tuesday after peaking at $0.4661. The Bank of England reduced interest rates by 25 basis points to 4%, indicating that the easing cycle might soon be over. Inflation remains a concern, as it is still above the target, causing worry among policymakers. Many broker analyses for 2025 highlight top brokers offering low spreads, high leverage, and regulated trading environments. These platforms are designed for both new and experienced traders looking to navigate the forex and financial markets effectively. Current market signals indicate that the weakening US Dollar is a key trend for the upcoming weeks. The dollar’s decline has led the EUR/USD to approach 1.1700 and the GBP/USD to near 1.3530, its highest in nearly three weeks. This trend aligns with recent US economic data, like the July 2025 jobs report, which showed a hiring slowdown. This has reinforced expectations that the Federal Reserve might have finished its tightening cycle.

Impact of Rates on Market Behavior

The softness of the dollar is a major reason why gold has rebounded above $3,350 per ounce. As the dollar weakens, gold becomes a more appealing store of value and hedge against inflation. Traders should consider long positions on gold derivatives, as this trend with the dollar is likely to continue through the third quarter. The Bank of England’s recent interest rate cut to 4% has created significant volatility for the Pound. Although the cut aims to stimulate a slow economy, UK inflation remains persistently high, with July 2025 figures showing it at 3.5%, much higher than the 2% target. This conflicting policy suggests potential erratic movements in GBP pairs, which may best be navigated with options strategies that benefit from increased volatility. We are closely monitoring Brazil after July’s inflation came in lower than expected. This trend may allow the Central Bank of Brazil to lower its Selic rate from 10.5%, possibly boosting economic activity, though it might also weaken the Brazilian Real. We expect this disinflationary trend to be confirmed by data expected on December 8, 2025, opening opportunities in BRL currency derivatives. Finally, we notice a decrease in risk appetite in more speculative areas of the market. The sharp decline in assets like the Pi Network indicates that traders are moving away from high-risk investments. This supports our strategy to concentrate on major currency pairs and commodities, where trends are more clearly influenced by macroeconomic data. Create your live VT Markets account and start trading now.

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