**Unexpected Growth in Eurozone Industrial Production** Several currencies reacted to recent economic developments. The EUR/USD pair remains weak, trading below 1.1650 as we await US economic data. Meanwhile, GBP/USD has stayed above 1.3400, directing attention to updates from the US. In commodity markets, gold is hovering near record highs due to ongoing geopolitical uncertainty and actions by the Federal Reserve. Also, Monero poses a risk of a deeper correction after reaching a record high of $800. Market outlooks involve projections for the US economy by January 2026 and potential effects on the cryptocurrency sector due to a delayed Senate bill discussion. Guides for picking brokers in 2026 cover various markets and trading needs. Legal disclaimers highlight that this content serves an informational purpose only and mentions the risks of market investments. FXStreet emphasizes that individuals should conduct their own research, and the provided information should not be seen as investment advice. **Investment Decisions and Responsibility** This content aims to inform, not recommend, reminding investors of their responsibility in making choices. It clarifies that neither FXStreet nor the author holds positions in the discussed assets. The recent Eurozone industrial production report for November was strong, showing a 2.5% increase. This indicates a recovery from the sluggish performance of 2025. The number surpassed expectations and could boost the Euro, but the currency’s weakness tells a different story. Even with positive European data, the EUR/USD struggles below the 1.1650 level because market focus is shifting to the United States. The latest US jobs report showed an increase of 210,000 jobs in December 2025, reinforcing that the Federal Reserve may maintain higher interest rates for a longer period. This expectation is driving significant demand for the US dollar. For derivatives traders, this situation suggests that selling EUR/USD call options with strike prices near 1.1700 could be a wise short-term strategy to take advantage of the dollar’s strength. Implied volatility for the pair has risen to almost 8.5% ahead of upcoming Fed speeches, up from an average of 6% last quarter. This trend makes option premiums more appealing, indicating a higher chance of sharp price movements. Overall market anxiety is evident, with gold maintaining its record high of $4,640 per ounce, driven by the same geopolitical tensions that flared up in late 2025. This continued risk-off sentiment suggests that purchasing protective put options on major equity indices is a sound hedge against potential downturns. The VIX index, which measures market fear, has been climbing from its 2025 lows and currently sits just above 18. In contrast, the British Pound remains above 1.3400 against the dollar, reflecting a more complex situation, bolstered by stronger-than-expected GDP growth in the UK. This is a notable recovery from the near-recession environment of early 2025. Traders might consider volatility plays like strangles on GBP/USD, anticipating a potential breakout if the Bank of England’s policies diverge from those of the Fed. Create your live VT Markets account and start trading now.

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