Germany’s import price index dropped 1.4% year-on-year in October. This is an improvement over earlier predictions of a 1.6% decline. The EUR/USD rate dipped slightly, trading under 1.1600 after Germany reported a 0.3% month-on-month drop in retail sales for October. GBP/USD also fell, nearing 1.3200 in a cautious market.

Gold and Zcash Prices

Gold remained stable below $4,200, gaining over 2.5% for the week. In contrast, Zcash saw a significant decline, losing more than 17% in the same timeframe. With U.S. markets closed for Thanksgiving, attention turned to the UK budget, leading to a slight drop in UK and European stock indices. The article also discussed various topics such as forex, brokerage analyses, and market conditions. Germany’s import prices dropped by 1.4% year-over-year in October, a better result than expected. This suggests that while deflationary pressures still exist, they may be easing. We’ll need to monitor this trend, as it could indicate a shift for European industry. The euro is struggling, trading below the crucial 1.1600 mark against the dollar. Weak German retail sales data doesn’t help the currency either. Derivative traders may want to explore strategies that could benefit if the EUR/USD pair stays within a narrow range or drifts lower soon, especially since bulls are struggling to maintain the 0.8770 level against the pound.

Federal Reserve and Market Conditions

Expectations are rising for a Federal Reserve rate cut next month, which is helping to keep gold prices steady below $4,200. Following a strong rate-hiking cycle in 2023 and 2024 aimed at curbing inflation, the focus is shifting to concerns about slowing economic growth. U.S. Q3 GDP growth for 2025 slowed to an annualized 1.5%, a clear decline from earlier quarters, strengthening the case for a potential cut. Major currency pairs like EUR/USD and USD/CAD are stuck within set weekly ranges, with trading volumes low due to the holiday, leading to reduced volatility. This situation may present opportunities for selling options to collect premiums. We might consider positioning for continued consolidation until the next significant catalyst arises. The Federal Reserve’s blackout period starts this weekend, shifting attention completely to upcoming inflation data. The last core inflation reading showed prices exceeding the 2% target, keeping the Fed’s December decision in play. We will also watch the upcoming Canadian GDP figures to see if the economy there has begun to recover. Create your live VT Markets account and start trading now.

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