Gold prices are stable as traders await the Federal Reserve’s interest rate decision at 19:00 GMT. The market expects a cut of 25 basis points, but concerns about a hawkish approach are increasing US Treasury yields. Currently, gold (XAU/USD) is trading at around $4,204, within a recent range of $4,150 to $4,250. A reduction in the Federal Funds Rate to between 3.50% and 3.75% is anticipated, making gold, a non-yielding asset, more attractive.

Speculation of a Hawkish Stance

Concerns about a hawkish stance could raise US Treasury yields, negatively affecting gold prices. All eyes are on Fed Chair Jerome Powell’s press conference and updated economic projections for any hints about future policies. This year, the Fed has already made two cuts of 25 basis points. There’s a 90% chance for an additional cut at this meeting, but expectations for more cuts in early 2026 remain limited. Recent comments indicate some disagreement among Fed members regarding inflation and employment issues. The gold market shows uncertainty, evident in its recent narrow trading pattern. A dovish Fed might push prices above $4,250, whereas a hawkish statement could drive them down towards $4,150. With the Federal Reserve’s decision just hours away on December 10, 2025, the market has almost fully factored in the anticipated 25 basis point cut. Gold remains steady at $4,204, suggesting that the key variable will be the tone of the Fed’s statement and Powell’s comments. The primary risk involves a “hawkish cut,” where the Fed reduces rates but indicates a prolonged pause in early 2026.

Market Reactions and Strategies

This cautious approach follows the November jobs report, which showed non-farm payrolls rose by only 135,000—less than expected—indicating a cooling labor market. The latest CPI report for November showed inflation at 2.8%, down from previous months but still above the Fed’s 2% target. This mixed data leads us to believe that officials will be cautious about future policies. For those trading derivatives, the uncertainty before the announcement makes buying volatility appealing. Gold’s volatility index (GVZ) has risen to a three-week peak of 18.5, signaling a significant price movement is anticipated. A simple long straddle—buying both a call and a put option at around $4,200—could yield profits if the market moves sharply in either direction after the announcement. If Chair Powell delivers a surprisingly dovish message, suggesting more cuts may be considered in early 2026, we could see gold rise above the $4,250 resistance level. In such a case, holding out-of-the-money call options, like the $4,300 strike expiring in January, can provide leveraged upside potential. These options are relatively inexpensive and could benefit from a bullish reaction. On the other hand, if the Fed’s dot plot or Powell’s comments indicate a strong resistance to further easing, gold might quickly test its support levels. A hawkish tone could push prices down to around $4,150, which has been a reliable floor. Traders anticipating this scenario might consider buying put options with a strike price near $4,150 or lower to profit from a likely decline. Looking ahead, the political situation adds uncertainty, supporting volatility. President Trump is actively interviewing candidates to replace Chair Powell when his term expires in May 2026. This uncertainty regarding the Fed’s leadership suggests that using longer-term options to hedge portfolios against policy changes in the new year is wise. We have seen a similar situation before, like during the Fed’s “mid-cycle adjustment” cuts in 2019. Back then, the Fed cut rates but indicated it wasn’t the start of a major easing cycle, temporarily limiting gold’s rise. This historical context suggests that even with a rate cut today, gold’s rally may be restricted unless we receive clear dovish guidance. Create your live VT Markets account and start trading now.

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The Bank of Canada has kept its main interest rate steady at 2.25%. This decision comes as the Canadian economy proves to be more robust than expected, according to updated growth figures from Statistics Canada. Despite US tariffs, inflation is manageable, and GDP is predicted to grow steadily by 2026, with inflation hovering around the 2% target. A temporary price rise might occur due to a previous tax holiday, but the federal budget is not set to increase inflation significantly. Governor Tiff Macklem stated that the current interest rate is well-suited to support the economy. Future decisions will be based on new economic data, acknowledging the difficulties in gauging economic activity. Senior Deputy Governor Carolyn Rogers highlighted an improved balance in the housing market, and no sudden spikes in house prices are expected. The Bank of Canada employs various tools, like changing interest rates, to steer the economy. Its primary aim is to keep inflation between 1% and 3%. The strength of the Canadian dollar (CAD) is affected by interest rates; higher rates can make the currency stronger. The bank uses Quantitative Easing (QE) and Quantitative Tightening (QT) to aid economic recovery and stabilize prices. Typically, QE weakens the CAD, while QT tends to strengthen it. With the Bank of Canada maintaining its rate at 2.25%, there seems to be little reason for a rate increase soon. This indicates that short-term interest rate fluctuations are likely to remain low. Traders might explore strategies that take advantage of a stable or slightly declining yield curve, such as selling call options on Bankers’ Acceptance futures. The Bank’s cautious approach is backed by recent inflation data from November 2025, which showed a yearly Consumer Price Index (CPI) rate of 2.1%. This is a significant change from the high inflation experienced in 2022 and 2023. Under these controlled conditions, the Bank sees no immediate need to tighten its policy. For currency traders, the key point is the growing difference in policy compared to the United States. While Canada holds steady, U.S. inflation has increased to 2.8%, leading to expectations of a Federal Reserve rate hike in early 2026. This suggests a weakened Canadian dollar, making it favorable to buy USD/CAD call options. The Canadian economy is showing no signs of overheating that would require immediate action from the Bank. The latest jobs report for November 2025 noted only 15,000 new jobs, which fell short of expectations. This indicates there is still some slack in the economy, giving the Bank room to be patient. Additionally, the housing market is no longer a source of inflation, easing the need for the aggressive rate hikes seen in 2022. National home prices have stabilized, with the Canadian Real Estate Association reporting a modest 1.5% increase year-over-year last month. This stability allows the Bank of Canada to comfortably maintain its current policy in the weeks ahead.

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The Bank of Canada (BoC) has decided to keep its policy rate at 2.25%, which many in the market expected. Governor Tiff Macklem noted that although the economy has more supply than demand, growth is likely to remain slow. Recent data showed a strong third quarter, mostly due to low imports, but a weaker fourth quarter is expected. Inflation is close to the 2% target, while core inflation is around 2.5%. Following the BoC’s announcement, the Canadian Dollar lost value against several major currencies, trading near 1.3860 against the USD. The BoC’s aim is to support the economy amid trade tensions while managing inflation. Looking ahead, a small rate increase is expected by 2026, indicating that the bank is comfortable with the current rates. The BoC’s past measures, including quantitative easing and interest rate management, are intended to stabilize the economy during difficult times. Globally, changes in interest rates can greatly impact currencies. Higher rates often strengthen a currency, while lower rates can reduce inflation. These considerations are key to the BoC’s policy-making. Given the Bank of Canada’s cautious approach, we expect the Canadian dollar to weaken in the coming weeks. The governor has been downplaying strong data and highlighting that the economy has too much slack. This implies that the central bank is not in a hurry to raise interest rates and is willing to let the economy grow at its own pace. Recent data supports this weak outlook. The November jobs report, released on December 5, showed the unemployment rate rising to 6.2%, indicating stalled hiring plans. Additionally, retail sales in October fell by 0.2%, confirming that domestic demand is flat, which aligns with the bank’s assessment. As a result, the USD/CAD pair moved toward 1.3860, and this trend is likely to continue. With the BoC taking a pause and expressing concerns about growth, the Canadian dollar may weaken further. We see the next target as the 200-day moving average around 1.3904, which might serve as a significant resistance level. Moreover, the Canadian dollar is facing downward pressure from falling energy prices. The price of WTI crude oil has decreased to below $78 a barrel, down from its November highs. Generally, a drop in oil prices negatively impacts the Canadian economy and its currency. In contrast, the United States is seeing the Federal Reserve maintain its current stance without indicating any upcoming cuts. This difference in policy—between a cautious BoC and a steady Fed—usually benefits a stronger U.S. dollar. We believe this divergence will significantly influence the USD/CAD exchange rate as we head into the new year. For derivative traders, this situation suggests buying call options on the USD/CAD to take advantage of potential gains with limited risk. As the currency pair approaches key technical levels, implied volatility may increase. This strategy allows us to profit if the Canadian dollar weakens, as we expect over the next few weeks. We will keep a close eye on Canada’s upcoming November Consumer Price Index (CPI) report, set to be released on December 18. If inflation readings are low, it would support the BoC’s cautious stance and likely lead to further declines in the Canadian dollar. However, if inflation surprises on the upside, it could challenge this outlook.

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Russia’s consumer price index rose by 0.42% in November compared to the previous month, a slight drop from the 0.5% increase earlier. This change shows trends in inflation and the economic situation in Russia, which are important for those studying the country’s economy.

Understanding The Data

The information here aims to inform and should not be seen as financial advice. Investors should remember that research is crucial before entering markets, as there are risks involved, including the potential loss of money. The recent inflation data from Russia indicates a slight slowdown to 0.42% for November. This brings attention to the Central Bank of Russia’s (CBR) upcoming meeting. We anticipate a very high chance that the CBR will keep its key interest rate steady at 16% on December 19th. Although inflation is cooling, this does not suggest a major shift in their strict policy stance.

Outlook On Interest Rates

With the central bank expected to hold steady, the volatility of ruble-denominated assets may decrease heading into the new year. Traders might look into strategies that take advantage of this, like selling short-dated options on the USDRUB currency pair to earn premium. The annual inflation rate, hovering around 7.5%, remains significantly above the official target of 4%, indicating that the central bank is likely to stick with a tight policy. In late 2023 and 2024, we observed a similar trend, where the CBR maintained high rates for a long time to ensure price stability. Thus, any derivative positions should be protected against unexpected hawkish statements that could unexpectedly strengthen the ruble. A small investment in out-of-the-money USDRUB put options that expire in January could serve as a low-cost hedge. Looking past the December meeting, attention will turn to year-end spending data and the December inflation report, expected in early January 2026. This upcoming report will be crucial for the CBR’s first meeting of the new year. We expect increased volatility around this release, making derivatives with late-January and February expirations particularly appealing. Create your live VT Markets account and start trading now.

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The US Dollar Index is going down, helping GBP/USD as traders wait for the Federal Reserve’s decision on interest rates. The UK economy seems to be improving after the Autumn Budget, but a rate cut from the Bank of England is anticipated. Technical analysis shows GBP/USD is testing important moving averages that could lead to gains. During the North American session, the Pound Sterling is gaining strength while the US Dollar weakens due to expectations of a Federal Reserve rate cut. GBP/USD is currently trading at 1.3336 and has bounced back from a low of 1.3296.

Markets Awaiting Federal Reserve Decision

Markets are quiet as they await the Federal Reserve’s decision. The US Dollar Index, which compares the dollar’s value to six other currencies, has dropped 0.21% to 99.03. With recent US data showing mixed signals—inflation has stopped rising, jobless claims remain stable, and job vacancies are up according to the JOLTS report—the outlook is unclear. In the UK, the Autumn Budget has led to positive market reactions, and flash PMIs suggest an improved economic situation. However, there is a 92% chance that the Bank of England will cut rates by 25 basis points in December, with another cut likely in 2026. Traders expect a “hawkish cut” from the Fed, which means they might lower rates but project a slow easing pace for 2026. GBP/USD is showing neutral to positive trends, with support levels at 1.3300, 1.3255, and 1.3210. The British Pound is also gaining strength against the Japanese Yen. Both the Federal Reserve and the Bank of England are expected to signal rate cuts this month, complicating the outlook for GBP/USD. The immediate reaction will depend on which central bank seems more committed to easing policies into 2026. Attention will focus more on future guidance than on the cuts themselves.

Economic Projections and Market Strategies

The market has already priced in a 25 basis point cut from the Fed, so the actual decision is less significant than the updated economic projections. The latest Core PCE inflation reading for October remained at 2.8%, above the Fed’s target. This suggests a “hawkish cut,” where rates might be lowered while indicating a slower pace of easing for 2026. Similarly, futures markets show a 92% chance of a Bank of England rate cut next week, despite recent improvements in UK flash PMIs. The latest inflation data for the UK is at 3.5%, indicating that a rate cut might reflect the BoE’s priority on stimulating growth rather than fighting lingering inflation. This dovish shift could limit any significant gains for the Pound Sterling. For those trading derivatives, high implied volatility in short-term GBP/USD options before these two meetings creates an opportunity. One strategy could be to sell volatility through short straddles or strangles after the announcements. Historically, looking at similar central bank cycles like in 2019, implied volatility tends to drop sharply once uncertainty is resolved. The spot price is currently testing the 200-day moving average at around 1.3333, which is an important technical level. We might consider selling call options with strike prices above the 1.3400 resistance level to take advantage of a limited upside. On the other hand, buying put options with strikes below 1.3300 could be a way to hedge against a surprisingly hawkish Fed statement that could drive the pair lower. Create your live VT Markets account and start trading now.

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The United States Energy Information Administration (EIA) announced that crude oil stocks dropped by 1.812 million barrels for the week ending December 5. This decrease is larger than what analysts expected, who forecasted a 1.2 million barrel drop. The weekly report updates crude oil inventory levels, highlighting changes that can affect market prices. When inventory levels change, it can indicate shifts in the supply and demand for oil in the United States. These changes often impact energy trading, especially when the results differ from expectations. Such variations may indicate broader trends in economic activity and energy consumption. Traders will carefully observe how these inventory changes influence oil prices, particularly in relation to economic indicators and global events that could disrupt oil supply. Future reports from the EIA will help shape trading strategies and provide insights into the overall direction of energy markets. Given the larger-than-anticipated drop in crude oil stocks, we view this as a positive signal for the upcoming weeks. It suggests that demand is stronger than expected, which could lead to higher oil prices. Traders might think about purchasing call options or bull call spreads on WTI futures for January and February 2026 to take advantage of potential gains. This inventory report supports recent data showing strong demand. For example, TSA checkpoint data from early December 2025 shows that passenger numbers have consistently exceeded 2.5 million per day, a nearly 4% increase compared to the same holiday travel period in 2024. This indicates strong jet fuel usage, which is a key part of oil demand. Additionally, economic indicators from last month showed steady industrial activity. The November 2025 ISM Manufacturing PMI was at 50.9, remaining in expansion and outperforming expectations. This suggests continued strong demand for industrial and diesel fuel as we end the year. On the supply side, the market remains tight after OPEC+ decided last month to extend existing production cuts into the first quarter of 2026. With major producers maintaining discipline, a significant increase in supply is unlikely, which should support prices. This context makes the recent inventory drop even more important for price direction. A similar pattern occurred in the fourth quarter of 2024, when unexpected inventory drops led to a rise in oil futures. Given this history, traders should see this report as a potential trigger for short-term price increases. Monitoring implied volatility will be essential for structuring derivatives trades effectively and managing costs. As we move forward, we will closely watch the upcoming weekly reports to confirm this trend. Specifically, ongoing drops in crude inventories, along with declines in gasoline and distillate stocks, would strengthen the bullish outlook. Any departure from this trend would prompt a reassessment of our positions.

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The Canadian Dollar has dropped in value against the US Dollar after the Bank of Canada (BoC) decided to keep its overnight rate at 2.25%. As of now, USD/CAD is trading at around 1.3861. Traders are now focusing on the Federal Reserve’s upcoming monetary policy announcement. The BoC noted that Canada’s economy grew by 2.6% in the third quarter, mainly due to trade rather than domestic demand. The bank expects GDP growth to slow in the fourth quarter but anticipates a rebound by 2026. Inflation is close to the 2.2% target, with core measures falling between 2.5% and 3%. Governor Tiff Macklem pointed out the impact of US tariffs on Canada’s economy but stressed Canada’s resilience. He stated that keeping the interest rate steady at the lower end helps support the economy during global trade issues. On the other hand, the Federal Reserve is likely to cut its rate by 25 basis points, bringing the Federal Funds Rate down to 3.50%-3.75%. The Bank of Canada manages its monetary policy through interest rates and affects the Canadian Dollar in scheduled meetings. During extreme situations, it uses Quantitative Easing (QE) to boost the economy, though this can weaken the CAD. In recovery phases, Quantitative Tightening (QT) typically strengthens the CAD by stopping asset purchases. There is a clear divide in policy between the Bank of Canada and the Federal Reserve. The BoC is keeping its rate at 2.25% because it sees balanced risks and stable inflation. This is a sharp contrast to the Federal Reserve, which is expected to reduce its rate by 25 basis points later today. The BoC’s cautious approach is backed by recent data. Statistics Canada revealed last week that retail sales fell by 0.5% in October, indicating that consumer spending may be slowing down. This suggests that the BoC might stay cautious for a while longer, likely into 2026. In the U.S., the Fed’s expected rate cut comes as the economy shows signs of cooling. The December 5th, 2025 jobs report indicated that non-farm payrolls increased by only 155,000, falling short of the 180,000 estimates. This provides the Fed the reasoning to make another “insurance cut” to boost growth. For traders in derivatives, the widening interest rate gap suggests continued strength in the USD/CAD pair. Buying call options that expire in January or February 2026 is a solid strategy to benefit from this trend with defined risk. We expect the pair to test the 1.3900 level, potentially moving toward 1.4000 if the Fed indicates more cuts may be ahead. We have seen a similar pattern before in the 2015-2016 period when a rising Fed contrasted with a cautious Bank of Canada. During that time, the USD/CAD pair rose for several months as the gap in policies grew. While the economic factors are different today, the differences between the central banks continue to drive the market.

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Unilever PLC, which owns brands like Dove and Ben & Jerry’s, is at a crucial moment in the market. The stock price dropped from around $71 to test support at $61. This support level has remained strong throughout 2024 and 2025. Recently, the stock bounced back to about $64.78, leading to questions about how sustainable this recovery is. The $61 level has acted as a psychological barrier for nearly two years. Strong buying has kept the price from falling below it during March 2024 and December 2024. Another test in December 2025 saw a quick rebound, showing that market sentiment is strong and buyers are still interested. Unilever’s recent rise from its lows was significant, gaining $3-4 above the $61 level. This bounce was promising and could signal a potential reversal if support at $61 continues. If the stock stays above $64, it might rise to the $68-70 range. However, if it falls below $61, the price could drop further to the $58-59 range, indicating a change in market sentiment. Unilever is at a key turning point, and the market will soon decide its direction. The $61 support level will play a crucial role in determining future price movements. Considering the recent bounce from the $61 level, we also need to think about the macroeconomic factors that caused the earlier drop. The November 2025 CPI data showed an unexpected rise in core inflation, raising concerns about consumer staple margins. The current price action around $64.78 suggests that the market is questioning whether Unilever can keep its pricing power. For those optimistic about Unilever holding steady, buying January 2026 call options with strike prices around $65 or $66 could be a good move. This allows participation in a potential rally towards the $68-70 resistance zone while limiting risk to the premium paid. Additionally, management’s statement reaffirming the full-year 2025 guidance gives more confidence in this recovery. On the flip side, if this is just a temporary bounce, buying put options is an alternative strategy. The weak Black Friday spending data for 2025, which showed no growth compared to last year, supports the idea that consumers are slowing down. If the stock fails to hold above $64 this week, it may be wise to consider February 2026 puts, targeting a break below the crucial $61 support. Implied volatility around this critical price point is likely high, making selling options an appealing strategy for some. We could sell out-of-the-money put credit spreads with a short strike below $61. This trade profits if the stock stays above that key support level until expiration, benefiting from both time decay and price stability. We should also remember the pressure from Nelson Peltz’s Trian Partners in 2023, which pushed for improved operational efficiency. Any bullish options position needs a clear exit plan if Unilever closes below $61 on high volume. That level is essential to our entire strategy.

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Interest Rate Projections and Market Reactions

The Federal Open Market Committee says interest rates should average 3.4% by the end of 2026. At the same time, traditional investors are looking into Ethereum’s recovery as it bounces back from a support level. Hyperliquid is currently trading above $28.00 after finding support at $27.50. The article reflects the authors’ views and does not represent official policy or investment advice. The Pound Sterling is holding steady near 1.2450 against the US Dollar. There is a slight bearish trend as the market remains cautious ahead of the upcoming Federal Reserve and Bank of England meetings. This stagnation suggests that a significant price movement may be on the horizon. The Bank of England is unlikely to adopt a dovish stance, especially after the UK’s latest Consumer Price Index (CPI) for November 2025 showed inflation at 3.1%, slightly above expectations. This ongoing inflation suggests that the Bank of England will likely keep rates steady, providing some support for the pound. This stability is likely why Sterling hasn’t dropped further. Meanwhile, the US Dollar is feeling pressure after a disappointing jobs report from December 5, 2025, which indicated only 155,000 new jobs were added. This weak data gives the Federal Reserve more reasons to consider easing monetary policy in 2026. The difference in central bank policies is a key focus for us.

Trading Strategies and Lessons from the Past

For traders in derivatives, this situation recommends strategies that can benefit from an increase in volatility. Buying straddles or strangles could effectively capture significant moves in either direction following central bank announcements. A firm drop below the 1.2400 support level could trigger bearish trades. We should remember the lessons from the rapid rate increases of 2022-2023, which showed how quickly markets can react to changes in central bank policies. The market has changed since those days when the Fed was steadily raising rates. Now, the environment is more uncertain, requiring a quicker response. Wider market sentiment is also important, as we’re seeing renewed interest from traditional investors in assets like Ethereum. A “risk-on” attitude, possibly driven by a dovish Fed, might weaken the safe-haven dollar and boost the pound. Monitoring equity indices this week will help gauge overall risk appetite. Create your live VT Markets account and start trading now.

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US stocks have been steady, influenced by various factors. The Federal Reserve is expected to cut interest rates today, with three more cuts likely by 2026. This may shift investor attention to the Fed’s future plans. Any surprises from the Fed could impact US stock markets, especially during Fed Chairman Powell’s press conference. Netflix surprised everyone by planning to buy Warner Bros. Discovery for $72 billion. This move has faced complications from a rival offer by Paramount Skydance, adding political issues. Netflix now deals with legal challenges and possible antitrust concerns, which could negatively affect its stock price. NVIDIA received approval to export H200 chips to China, benefiting its stock price. However, US national security worries have emerged, and Chinese regulators might restrict access to foster local production. While this development is currently good for NVIDIA, strict limitations could hurt its market performance. In Australia, social media platforms like TikTok and Instagram are required to block users under 16, with hefty fines for non-compliance. This decision is being watched closely as it could impact the revenues and stock prices of companies like Google and Meta if it proves successful. The S&P 500 is currently moving sideways under resistance at 6930, with possibilities for both upward and downward movements depending on market conditions. With the Federal Reserve’s interest rate decision occurring today, December 10th, 2025, the market is poised for a rate cut, but the real risk lies in what the Fed indicates for the future. The CME FedWatch Tool shows an 85% chance of a 25-basis point cut, meaning this cut is already reflected in stock prices. Traders should think about strategies that take advantage of market volatility, such as straddles on the SPX, as Fed Chairman Powell’s press conference could quickly alter expectations. The main risk is a “hawkish cut,” where the Fed lowers rates but signals fewer cuts for 2026 in its updated dot plot. The latest Core CPI report showed a decline to 2.8% in November 2025, an improvement but still above the Fed’s long-term target, prompting caution. Buying near-term index put options or VIX call options could protect against a market that may need to quickly adjust its views on future monetary policy. The competitive bid for Warner Bros. has created major uncertainty for Netflix, whose shares have dropped over 8% since Paramount’s offer last week. This public battle, combined with increased antitrust scrutiny, suggests a challenging and lengthy process for Netflix. We view this as an opportunity to buy put options on NFLX, expecting that complications around the deal could drive the stock price down in the coming weeks. This situation mirrors past mergers that faced intense regulatory scrutiny, like the failed AT&T and T-Mobile merger in 2011. The implied volatility on Netflix options has risen sharply, making outright long options costly. Instead, traders might consider selling out-of-the-money call spreads to earn premium while keeping a bearish to neutral outlook on the stock. For NVIDIA, the approval to export H200 chips to China is a short-term positive, but there are considerable risks from both sides of the Pacific. Sales to China made up about 19% of NVIDIA’s revenue in fiscal 2024, so any restrictions from Beijing to bolster local industry could be a significant challenge. A collar strategy—buying a protective put and selling a covered call against a long stock position—could secure recent gains while protecting against a sudden drop. Australia’s new ban on social media for users under 16 poses a real threat for companies like Meta and Google. Though Australia is a small market, this serves as an important case for regulators in Europe and North America. Data from the Australian eSafety Commissioner showed that over 90% of teens aged 14-17 used social media in 2024, indicating a large user base now being restricted. The key risk is widespread adoption; if this ban is effective, similar laws in larger markets could severely limit user growth and advertising revenues. This is an ongoing concern that could unfold over several quarters. We consider purchasing long-dated put options on META a smart way to prepare for potential negative trends. The S&P 500 is currently caught between support at 6715 and resistance at 6930, reflecting market uncertainty ahead of the Fed’s decision. The CBOE Volatility Index (VIX) is around 17, a relatively low level suggesting complacency, which might make protective options cheaper. For traders expecting this sideways movement to persist after the initial Fed volatility, selling an iron condor could be a practical strategy to profit as the index remains within this range.

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