**Currency Movements And Market Impact** The USD/CAD exchange rate is stabilizing around 1.3800 as traders await news from the Federal Reserve and the Bank of Canada. Meanwhile, the European Central Bank’s inflation forecast is slightly under 2%, affecting the Euro and Dollar movement. Gold is having difficulty staying above $4,200, with expectations of a Fed rate cut weighing on its momentum. In the cryptocurrency market, altcoins like Monero are facing price drops, reflecting broader market trends. Although silver is hitting new highs, other precious metals and mining stocks are lagging behind, creating a mixed picture for investors. **Investment Risks And Recommendations** Traders should carry out extensive research since investing in open markets comes with risks, including possible financial losses. FXStreet provides information but does not offer personalized investment advice. China’s exports rebounded sharply in November, rising 5.7% compared to a previous decline. This unexpected strength bodes well for global growth, suggesting that industrial demand may be strengthening—a factor that markets hadn’t fully anticipated. This could be a sign to invest in commodity-linked currencies as the year ends. Based on this data, there are opportunities to buy call options on the Australian Dollar. China is Australia’s largest export market, accounting for over 32% of the total trade in the third quarter of 2025. Historically, positive surprises in Chinese industrial activity, similar to early 2023’s manufacturing PMI gains, have triggered lasting rallies in the AUD/USD pair. The market is also awaiting a US Federal Reserve rate cut this Wednesday, which is putting pressure on the US Dollar. The latest US inflation figures from November revealed a core PCE price index decrease to 2.8%, comfortably within the range for the Fed to start easing policy. This environment makes long positions in pairs like EUR/USD appealing—potentially through short-dated call options to capture volatility around the Fed’s announcement. This sets up a strong policy divergence trade against the Japanese Yen. While the Fed is looking to cut rates, rising wage growth in Japan is raising expectations for a Bank of Japan rate hike in early 2026. We see buying put options on the USD/JPY as a compelling way to express this view in the coming weeks. In the commodities market, the anticipated Fed rate cut and a weaker dollar should support precious metals. Gold is already holding strong above $4,200 an ounce, and we see more upside potential as we approach the new year. Bull call spreads on gold futures may provide a cost-effective way to speculate on a move toward new highs. However, there’s a disconnect in the energy markets, with WTI crude oil struggling to stay above $60 a barrel. This weakness contrasts with the strong Chinese export data and may indicate lingering concerns about a broader global slowdown beyond China. Caution is advised, as gains in risk assets may not be uniform across various sectors. Create your live VT Markets account and start trading now.

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