India’s industrial output fell to 2.7% in September, down from 3%. This indicates a slight decline in the country’s industrial performance. In financial news, Copper and PGMs are expected to rise as stockpiling increases. The Japanese Yen has also gained 0.6% against the US Dollar due to strong signals from the Bank of Japan.

Currency and Commodity Markets

The EUR/USD pair hit a three-week high close to 1.1650, while the GBP/USD hovered around 1.3270. Both currencies are performing well against a generally weak US Dollar. Gold prices have surged to a two-month high, trading above $4,260, fueled by expectations of another Federal Reserve rate cut. China has transformed from just being a revenue source into an innovation center for Western brands. This change reflects how multinational corporations view and engage with the Chinese market. The forex trading scene in 2025 will introduce new criteria for brokers, focusing on spreads, leverage, and regional presence. A thorough list of the best brokers for various trading needs—including those offering the MT4 platform and Islamic accounts—will be available for traders’ guidance. The market is showing clear weakness in the US Dollar, which we expect to drive trends in the coming weeks. Traders are increasingly betting on a Federal Reserve rate cut this month, especially after November’s Core PCE Price Index indicated inflation dropping to 2.8%, close to the Fed’s target. We might consider using derivatives to bet on further dollar declines against a basket of G10 currencies.

Opportunities in Gold and Currency Markets

With the dollar weakening, EUR/USD continues to show strength, already surpassing 1.1600. The European Central Bank has kept its policy rate the same, creating a divergence that benefits the euro. Buying call options on the EUR/USD pair with January 2026 expiry dates could help capture more upside. Gold is also benefiting from lower rate expectations, recently reaching two-month highs above $4,260 an ounce. Historically, when the Fed embarks on easing cycles—as seen in late 2018 and in 2020—gold has gained significantly. We expect this trend to persist, making call options on gold futures an attractive trade. Another intriguing opportunity comes from the Japanese Yen, which is rising on hawkish signals from the Bank of Japan. While the Fed is preparing for cuts, the BoJ is considering policy normalization, creating a stark contrast that has led to the yen’s recent 0.6% increase against the dollar. We should explore put options on the USD/JPY pair to take advantage of this significant divergence. The context for this Fed pivot includes slowing global growth, reflected by India’s industrial output dropping to 2.7% in September. This trend was supported by last week’s global manufacturing PMI figures, which have remained in the contraction zone for four months straight. As we anticipate a risk-on rally from a rate cut, we should also think about buying protective put options on major indices to hedge against this underlying economic weakness. Create your live VT Markets account and start trading now.

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