In November, Eurozone M3 money supply growth exceeded forecasts at 3% instead of the expected 2.7%

    by VT Markets
    /
    Jan 2, 2026
    The eurozone’s M3 money supply rose 3% in November compared to last year, beating the expected 2.7%. In the market, the EUR/USD pair is facing downward pressure, while GBP/USD is holding steady around 1.3450. Gold prices have started to recover, nearing $4,400 after significant losses.

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    Cardano’s value is increasing at the start of the New Year, with trades exceeding $0.36. Predictions for 2026 anticipate strong economic growth in advanced countries and a lively crypto market fueled by U.S. regulation changes and trends in tokenization. Economic forecasts indicate that the positive factors from 2025 will carry over into 2026, resulting in a strong year ahead. While the crypto market may be volatile, it stands to benefit from regulatory changes and a growing acceptance of digital assets. There are several key broker categories for 2026, including forex brokers, high-leverage options, and those offering Islamic accounts. This information is vital for traders around the world. FXStreet provides general market information and does not offer personalized recommendations. The site is not responsible for any investment risks, losses, or mistakes in its content. The information is for educational purposes only and does not include specific buy or sell suggestions.

    Higher Than Expected Eurozone M3 Data

    The unexpectedly high Eurozone M3 money supply data from November 2025 hints at increasing inflation pressures. This follows late 2025 when the Eurozone’s core CPI for December rose to 2.9%, nearing the ECB’s target. A continuous rise in money supply might prompt the European Central Bank to take a more aggressive approach sooner than expected. Given this, the current weakness in EUR/USD, trading below 1.1750, may be a short-term situation that offers a buying chance. We might consider using derivatives, like buying call options, to bet on a stronger Euro in the weeks ahead. The contrast between strengthening Eurozone data and a potentially dovish Fed is a key trading theme. Expectations for a less active Federal Reserve are driving gold prices toward $4,400 per ounce. The US Non-Farm Payrolls report from December 2025 showed annual wage growth slowing to 3.8%, giving the Fed space to ease its policies. This sharply contrasts with the Eurozone’s inflation signals, setting the stage for dollar weakness against the euro. The surge in gold prices is also backed by strong institutional demand, as global central banks reportedly added over 300 tonnes to their reserves in the last quarter of 2025. This behavior mirrors inflationary periods of the late 1970s and indicates a move to safety. We can use bull call spreads on gold to capitalize on further gains while minimizing initial costs. Entering the New Year, trading volumes are still low, which may cause exaggerated price changes. Implied volatility in major currency pairs is near its 52-week lows, making options more affordable. This is a great time to establish positions that will benefit from increased market activity as traders return. Create your live VT Markets account and start trading now.

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