In November, consumer credit in the United States rose by $4.229 billion. This was much lower than the expected increase of $10 billion, indicating a slowdown in consumer borrowing for that month. Market conditions have caused changes in currency and commodity values. For example, the Australian dollar is weak following China’s consumer price index data, while silver prices have bounced back above $77.00 amid market caution.

The EUR/USD Pair Stability

The EUR/USD pair stabilized around 1.1650 just before the US Nonfarm Payrolls report. This report is expected to show a decrease in job gains, dropping from 64,000 in November to a forecast of 60,000 in December. In the brokerage sector, there are guides to help choose brokers in different categories and regions for 2026. These guides cover topics like low spreads, high leverage, and special accounts around the world, providing useful insights for potential traders. FXStreet highlights that their information comes with risks and uncertainties. Their articles are for informational purposes only, not financial advice. They warn that investing in open markets carries significant risk of loss. Readers should do their own research before making financial decisions. The recent consumer credit report for November 2025 shows a noticeable decline in borrowing. This number is less than half of what was anticipated and signals that American consumers are becoming more cautious. This reluctance to take on debt could weaken consumer spending, a key driver of the US economy.

Federal Reserve Dilemma

This data puts the Federal Reserve in a tough spot, making further interest rate hikes unlikely in the near future. Everyone is now looking at the upcoming Nonfarm Payrolls report. A weak jobs number would confirm this slowdown and may shift expectations toward rate cuts later this year. We saw a similar pattern in late 2024 when weaker consumer data led to a pause in the Fed’s tightening cycle. For equity index derivatives, this trend suggests a bearish outlook for the coming weeks. We think buying protective put options on the S&P 500 could be a good way to hedge against a possible market downturn. The CBOE Volatility Index (VIX), which has recently averaged around 14, is historically low, making option premiums relatively cheap for this hedge. In the rates market, we expect Treasury futures to rally as the market anticipates no further rate hikes. Going long on 10-year Treasury Note futures could be a direct way to bet on falling yields. This outlook also puts pressure on the US Dollar, which may strengthen pairs like the EUR/USD, that are trying to hold above the 1.1600 level. Create your live VT Markets account and start trading now.

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