Mexico’s fiscal balance in October showed a deficit of 16.75 billion pesos, a significant improvement from the previous deficit of 198.11 billion pesos. The euro remains stable above 1.1600 as expectations for an accommodating policy in December rise. Gold stays strong above $4,200, amid a shift in market views for December.

Silver Prices Surge

Silver prices have jumped past $56 due to favorable market conditions. WTI crude oil prices are up as peace talks between Russia and Ukraine progress, with eyes now on the upcoming OPEC+ meeting. Gold is on track for its fourth consecutive monthly gain, driven by increasing expectations for interest rate cuts by the Federal Reserve. Canada’s economic performance for Q3 looks strong, although domestic demand is still weak. The EUR/USD has improved, moving above 1.1600. In contrast, GBP/USD fluctuates around the 1.3230 mark. Gold has risen to two-week highs over $4,200, while cryptocurrencies like Bitcoin, Ethereum, and XRP show minimal recovery, with retail activity low. Experts recommend a list of top brokers for 2025, covering areas like forex, Gold, and CFDs, with specific emphasis on high leverage and regulated brokers for traders.

Market Signals and Strategies

The market indicates that the US dollar is likely to weaken, with an 87% chance of a Federal Reserve rate cut next month. With Core PCE inflation dipping below 3% for the first time since 2023’s turmoil, this more relaxed stance appears reasonable. We should think about buying call options on the Euro or other major currencies against the dollar to take advantage of this consensus. Gold and silver are showing strong bullish momentum, also fueled by expectations of lower interest rates. With gold above $4,200 and silver hitting a record $56, using bull call spreads on their ETFs could be a smart way to benefit from this trend while managing the high cost of options. This rally is further supported by ongoing central bank buying, which has maintained the powerful trend seen when they bought over 1,000 tonnes in 2024 for the second consecutive year. The Mexican peso looks promising following news of a significantly smaller fiscal deficit in October. This fiscal discipline strengthens a currency that already benefits from high interest rates, a feature of Banxico’s policy since 2024. Selling USD/MXN futures or considering peso call options seems to be a favorable trade based on this encouraging local data. The oil market faces uncertainty ahead of the OPEC+ meeting, presenting an opportunity for volatility. We recall the sharp price swings after the unexpected production cuts announced in late 2023, indicating that a similar outcome could happen again. An options strategy like a straddle on WTI futures would allow us to profit from significant price movements, regardless of direction. While Canada’s overall growth appears positive, the underlying weak domestic demand is worrisome. This mirrors trends from 2024 when GDP per capita contracted for several quarters, indicating a fragile consumer base. A pair trade, like buying EUR/CAD futures, could be a good way to exploit expected Canadian dollar weakness against a strengthening Euro. Create your live VT Markets account and start trading now.

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