Colombia’s Consumer Price Index (CPI) for November increased by 0.07% compared to the previous month, which was lower than the anticipated 0.2% rise. The FXStreet team shared additional market insights. The EUR/USD pair dropped to around 1.1630 due to a slight uptick in the US Dollar.

GBP/USD Pair’s Movement

The GBP/USD pair fell to 1.3320 after a brief rise in the US Dollar. Gold prices returned to $4,200 per troy ounce, prompted by a rise in US Treasury yields. Bitcoin held steady above $91,000, with Ethereum also staying above $3,100. Both cryptocurrencies seemed optimistic ahead of the Federal Reserve’s upcoming meeting. Ripple’s price fell for a second day, trading at $2.06, despite ongoing interest in XRP spot ETFs. The article also noted upcoming monetary policy meetings from major banks such as the RBA, BoC, and SNB. Looking to 2025, traders may want to choose brokers based on low spreads, leverage options, and trading platforms. The insights shared by FXStreet are general market updates, not specific investment advice.

The Federal Reserve’s Influence on Markets

With the Federal Reserve meeting on December 10, the market is largely expecting a rate cut. This indicates that conventional long positions are crowded. Traders may want to explore options strategies that could profit from increased volatility if the Fed’s guidance is less dovish than anticipated. Historically, markets can react negatively to a “hawkish cut,” as seen in late 2018 when a cautious outlook accompanied a rate cut. We expect the US Dollar to remain weak if the Fed delivers the anticipated dovish message. The U.S. Dollar Index (DXY) has already fallen over 5% in the last quarter, supporting the idea of holding call options on gold, which is currently above $4,200 an ounce. Given gold’s impressive 18% rally in 2025, purchasing some protective puts could be a smart strategy to guard against a sudden reversal due to a hawkish surprise. The lower-than-expected inflation in Colombia is an important local factor that aligns with the global trend of disinflation. This 0.07% reading puts pressure on Banco de la República to consider rate cuts in early 2026, which would likely weaken the Colombian Peso. We anticipate traders to begin preparing for this by buying call options on the USD/COP pair. Overall, this risk-on sentiment is boosting equities and cryptocurrencies. Bitcoin’s recent rise above $90,000 shows the market’s strong response to liquidity expectations. The drop in US PCE inflation data reinforces hopes for rate cuts, making call options on the Dow Jones an attractive strategy. We believe this momentum will carry into the Fed’s announcement next week. Create your live VT Markets account and start trading now.

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