Indonesia’s core inflation rate for November was 2.36% compared to last year. This number reflects changes in consumer prices, not including temporary items. The Japanese Yen has gained strength, reaching a two-week high against the US Dollar. At the same time, the EUR/USD pair is trending upwards, affected by upcoming Eurozone manufacturing data.

Gold Prices and Federal Reserve Predictions

Gold prices are nearing a six-week high due to expectations of a Federal Reserve interest rate cut in December. The USD/INR has also hit a record high, driven by ongoing foreign investment leaving India. Bitcoin, Ethereum, and Ripple started December with drops over 4%. This suggests potential further decreases to around $80,000 for Bitcoin, $2,100 for Ethereum, and $1.90 for Ripple. The crypto market’s decline has negatively impacted investor sentiment for stock futures in the US and Europe. FXStreet’s website offers brokerage recommendations for 2025, consumer advice, and editorial guidelines. They highlight the importance of personal research before making investments, as markets carry risks and uncertainties. They also clarify that they do not provide personalized financial advice or guarantee that their information is error-free. Betting on a Federal Reserve rate cut this month is increasing, putting pressure on the US Dollar. The CME FedWatch Tool now shows over an 85% chance of a rate cut during the FOMC meeting on December 18th. This expectation suggests buying put options on the US Dollar Index (DXY) or call options on EUR/USD as it approaches the 1.1600 level.

Monitoring US and International Economic Indicators

Gold is benefiting from these Federal Reserve expectations, trading near its six-week high. We recall that gold rose past $2,100 during a similar period in late 2023, and the current situation feels similar. Traders might consider purchasing call options on gold futures (GC) to take advantage of potential gains from falling real yields. The steep decline in Bitcoin and other cryptocurrencies at the start of December has halted November’s equity market rally. This abrupt change indicates a shift towards risk aversion in the markets, creating uncertainty. Buying put options on indices like the S&P 500 or Nasdaq 100 could help hedge against a potential market downturn in the coming weeks. Although the dollar is weak against some major currencies, it’s not a one-sided bet, highlighted by the USD/INR reaching a historic high due to foreign outflows. The Japanese Yen is gaining strength, making long JPY positions via futures or options appealing. This situation requires a careful approach, examining pairs individually rather than taking a general anti-dollar stance. All eyes are on the upcoming US ISM Manufacturing PMI report this week for indications of economic slowing. Last month’s report showed a contraction reading of 46.8, and another weak figure would support the argument for a rate cut. Meanwhile, Indonesia’s stable 2.36% core inflation suggests that some emerging markets are managing economic conditions with less immediate pressure. Create your live VT Markets account and start trading now.

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