Russia’s industrial output in November fell by 0.7%, missing the expected growth of 1.2%. This shows a decrease in production from what was anticipated. In other market news, USD/CAD is near a five-month low because of differing policies between the Bank of Canada and the Federal Reserve. Gold prices have dropped from their all-time highs and are now under $4,500 as profit-taking occurs.

Pound Sterling Stability

The Pound Sterling is stable around 1.3500 against the US Dollar in a calm market. Bitcoin’s price has fallen to $86,770, with increased ETF outflows marking the fourth day of withdrawals. Looking ahead to 2026-2027, analysts expect strong economic growth in advanced countries. Many positive trends from 2025 are likely to continue. Avalanche’s price is struggling around $12 after a nearly 2% decline. Grayscale has applied to turn its Avalanche Trust into an ETF with the US Securities and Exchange Commission. As we near the end of the year, trading remains low due to holiday market thinning. This usually leads to lower implied volatility across major indices, making short-term options cheaper. However, low liquidity might amplify price movements in response to unexpected news, so traders should be cautious.

Russian Industrial Output

The unexpected drop in Russian industrial output for November points to underlying weakness. Keep an eye on USD/RUB futures; they may rise if the pair hits resistance levels previously seen in the 90-92 range during late 2023. This data might also impact energy prices if it suggests weaker global demand. Gold is pulling back from its record high above $4,520, reflecting profit-taking rather than a trend reversal. We can remember similar patterns, like the consolidation phase that followed the 2020 peak, lasting several months. Selling out-of-the-money call options to collect premiums could be a sound strategy while the market adjusts to these new highs. The tight ranges in major currency pairs like EUR/USD and GBP/USD highlight market indecision as we head into 2026. Data shows that foreign exchange volatility is at its lowest in over six months, confirming this quiet atmosphere. This makes option-selling strategies, like iron condors, appealing for income generation while these pairs remain stuck in a range. The ongoing Bitcoin ETF outflows, now four days in a row, are creating considerable challenges. We witnessed a similar situation with Grayscale outflows in early 2024, which led to a price drop of over 15% in just a few weeks. Traders might consider buying put options to protect against or speculate on further declines toward the next support level. Create your live VT Markets account and start trading now.

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