Spain’s Consumer Price Index (CPI) for October 2023 rose by 0.7%, meeting expectations. This reflects the current state of consumer prices in the country. **Market Trends** The USD/INR fell as the US dollar weakened. Also, India’s Wholesale Price Index (WPI) inflation decreased by 1.21%. Meanwhile, the Euro to US Dollar rate moved down from recent highs, despite positive economic data from the Eurozone. **Fiscal Developments in the UK** The British pound slightly recovered as the UK’s fiscal deficit dropped to £20 billion. The USD/CHF currency pair fell to four-week lows amid risk-averse market conditions. Eurozone GDP growth for Q3 was confirmed at 0.2% quarter-on-quarter. The report included key market movements, such as the Euro to US Dollar easing towards 1.1600 and the GBP/USD staying around 1.3150 due to fiscal concerns. Gold prices stayed below $4,200, with fewer bets on potential Federal Reserve rate cuts. Major cryptocurrencies like Bitcoin, Ethereum, and Ripple faced selling pressure. The recent Spanish CPI data, at 0.7% for October, suggests stabilizing inflation in the Eurozone. This aligns with the flash estimate for the entire bloc, reported at 2.7% last month, down from a peak in 2024. Derivative traders might consider betting on the European Central Bank keeping rates steady through the first quarter of 2026. **US Dollar Trends** The US Dollar weakened this week, but we see this as a short-term pullback. The latest US Non-Farm Payrolls report from November 7 showed a surprising gain of 210,000 jobs, keeping the unemployment rate low at 3.9%. This data suggests the Federal Reserve will likely not cut rates soon, indicating that long dollar positions could be profitable on dips. With the Euro supported by stable regional data, the EUR/USD pair has drifted down from recent highs. It struggles to stay above the 1.1750 level, as observed in recent price action. Given the Federal Reserve’s consistent hawkish stance, considering strategies like selling call options or buying puts on EUR/USD above 1.1800 might be wise in the coming weeks. Gold remains under pressure, failing to surpass the $4,200 mark due to long-term higher US interest rates making non-yielding assets less appealing. This risk-averse mood is affecting digital assets as well, with Bitcoin’s drop below $75,000 intensifying market selloffs. Traders should look out for increased volatility, possibly by monitoring options on the VIX index, as markets adapt to lower liquidity. Create your live VT Markets account and start trading now.

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