The S&P Global Composite PMI for Australia fell to 51.1 in December, down from 52.6 the previous month. This drop indicates that the Australian economy is expanding more slowly than before. This shift may affect the Reserve Bank of Australia’s monetary policy. The data could shape their views on inflation and employment as they assess the economic situation.

Australian Economy Growth

The decline in the S&P Global Composite PMI to 51.1 shows that the growth of the Australian economy is slowing down. Although the economy is still in expansion, this change is significant and should be considered in our planning. This data reflects the delayed impact of the rate hikes the Reserve Bank of Australia made throughout 2024. As the economy cools down, expectations for another RBA rate hike in early 2026 are decreasing. The cash rate has been steady at 4.60% for three months. With the latest inflation figure easing to 3.5%, this PMI data suggests that the RBA is more likely to cut rates than raise them. We should consider adjusting our positions in interest rate futures to align with this softer central bank outlook. The softening economy is also a bearish sign for the Australian dollar. A less aggressive RBA compared to the US Federal Reserve may weaken the AUD/USD pair, which has had trouble staying above 0.6800. Buying put options on the AUD is a smart way to protect against or profit from a potential drop in the currency in the coming weeks.

ASX 200 Volatility

This mixed signal creates uncertainty for the ASX 200, making volatility an appealing asset to trade. Slower growth might hurt corporate earnings, but stable or lower interest rates could support stock valuations. We can use options straddles on the XJO index to prepare for a significant price move in either direction as the market processes this conflicting information. Historically, we saw a similar pattern in late 2023 when early signs of a slowdown appeared after intense global policy tightening. The current situation mirrors that period, suggesting that economic data will play a key role in guiding market trends. This makes derivatives that benefit from clear moves or rising volatility especially relevant right now. Create your live VT Markets account and start trading now.

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The S&P Global Services PMI for Australia dropped from 52.8 to 51 in December. This decline shows that the services sector is slowing down, hinting at a slowdown in economic growth. The Services PMI looks at business activity, employment, and new orders, serving as a gauge of economic health. A score below 50 typically means contraction, raising worries about the recovery after the pandemic.

Potential Effects on Monetary Policy

Analysts will closely examine this data for possible effects on monetary policy and decisions by the Federal Reserve. Future economic indicators will help clarify the path of Australia’s economic recovery. Economies and markets will stay in focus, especially as central banks tackle growth and inflation concerns. This data may influence currency values and overall market conditions. Upcoming economic reports, like the US Nonfarm Payrolls, could affect market changes when released. The recent drop in the S&P Global Services PMI might guide future economic discussions and market strategy. The PMI’s fall to 51 signals a clear slowdown in the Australian services sector. While still indicating growth, this significantly eases the pressure on the Reserve Bank of Australia to raise interest rates. It suggests that the current cash rate may be the peak for this cycle.

Market Volatility for Australian Assets

This aligns with other data we’ve been following, such as last quarter’s inflation rate, which slowed to 4.1% annually. The RBA recently kept the cash rate at 4.35%, and this PMI data supports that decision. It strengthens the likelihood that the next policy move may be a rate cut rather than a hike. For derivatives traders, this indicates potential increased market volatility for Australian assets in the coming weeks. Strategies like buying puts on the AUD/USD currency pair could help hedge against or speculate on further declines. In this environment, options pricing, especially implied volatility, is an important metric to monitor. Looking back from our current position in late 2025, we see patterns from earlier economic cycles, like the slowdown of 2019. Historically, a lasting decline in indicators like the PMI has often led to a dovish shift from the RBA. This context suggests we should prepare for potential AUD weakness in the next one to two quarters. We also need to consider that the Reserve Bank of Australia’s decisions are strongly influenced by the US Federal Reserve. Recent signals from the Fed suggest a pause and possible rate cuts next year, giving the RBA more flexibility to be less restrictive. This global monetary policy alignment may soften a steep decline in the AUD while reinforcing an overall bearish sentiment. Create your live VT Markets account and start trading now.

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The US Dollar Index (DXY) dropped after the Federal Reserve made its policy announcements, ending three weeks of losses. As of late Monday, the index made a slight recovery, trading at around 98.40. The US Dollar showed mixed results against major currencies, performing best against the New Zealand Dollar. Here are the percentage changes for some other currencies: EUR -0.02%, GBP +0.01%, and JPY +0.33%.

Possible Federal Reserve Chair Appointment

Kevin Hassett is facing pushback for the Federal Reserve Chair position due to his close ties to President Trump. Meanwhile, Kevin Warsh is gaining attention and support as a strong candidate. This week is important for the US economy, with key events including the US Consumer Price Index (CPI) and Nonfarm Payrolls (NFP) reports. The US Bureau of Labor Statistics will release November CPI data along with some from October on Tuesday. USD/CAD traded over 1.3780, while Canada’s CPI stayed steady at 2.2%. The EUR/USD is stable around 1.1740, and the USD/JPY is at about 155.30, showing a slight recovery. Gold is trading well near $4,310, and GBP/USD is low around 1.3360. The Federal Reserve manages US monetary policy through interest rate changes to maintain price stability and encourage employment. It holds eight meetings a year to set this policy, using tools like Quantitative Easing and Quantitative Tightening to influence the value of the US Dollar.

US Dollar Weakness and Future Outlook

The US Dollar has struggled, falling for three consecutive weeks since the Federal Reserve hinted at a cautious approach last Wednesday. This weakness was highlighted on December 16th when the Nonfarm Payrolls report for November revealed only 110,000 new jobs, far less than the expected 180,000. Considering this, any temporary strength in the dollar should be seen as an opportunity to prepare for potential further declines. The uncertainty surrounding the next Federal Reserve Chair adds to the likelihood of dollar fluctuations in the coming weeks. Opposition to Kevin Hassett, regarded as someone who may advocate for lower interest rates, could lead to a rocky policy path. Traders may want to consider buying options to protect against sudden market moves related to the nomination process. For EUR/USD, we’re keeping an eye on the European Central Bank’s meeting on Thursday. With Eurozone inflation holding steady at 3.1% in November, the ECB may not be as dovish as the Fed, which might push the pair beyond its current 1.1740 range. We should consider buying on dips or looking at call options in anticipation of upward movement. The high USD/JPY level near 155.30 appears vulnerable, especially given the overall weakness of the dollar. This price level was set during a period when the Fed was aggressive, which was more evident throughout 2022 and 2023. With gold strong at around $4,310, a sign of safety-seeking behavior, traders might consider buying JPY, putting downward pressure on this pair. While Canada’s lower inflation offers some support for USD/CAD above 1.3780, this level may not hold if US economic data continues to decline. The weak US jobs report is currently a more significant influence on the market than Canada’s CPI report. We should approach this pair with caution and watch for any breakdowns if US data disappoints further. With major central bank decisions and crucial inflation data looming this week, we can expect increased implied volatility. We believe the dollar’s most likely movement is down, making strategies like buying put options on the DXY appealing. This approach allows for profit from a continued drop while defining maximum risk. Create your live VT Markets account and start trading now.

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The USD/JPY pair is currently trading in a tight range as traders await important US economic data and the Bank of Japan’s (BoJ) interest rate decision. The 21-day Simple Moving Average (SMA) around 156.00 is acting as immediate resistance, while support is found in the 154.20-154.00 area, backed by the 50-day SMA. Right now, USD/JPY is around 155.37, down 0.33%, after bouncing back from an intraday low of 154.84. Key US releases include delayed payroll reports for October and November, retail sales data, and preliminary PMI surveys. In Japan, the focus is on the Jibun Bank PMIs.

Technical Analysis Overview

Technically, the pair is stabilizing after a rejection near the 158.00 level. If it climbs above the 21-day SMA, bullish momentum could push it towards the 157.00-158.00 zone. Conversely, if it falls below 154.20-154.00, it could shift to a bearish outlook, targeting 153.00 and the 100-day SMA around 151.00. Momentum indicators show weakening bullish strength, with the RSI nearing 50 and the MACD below its signal line, indicating reduced upward momentum for the USD/JPY pair. As of December 16, 2025, USD/JPY remains in a narrow channel while waiting for two key events this week: the BoJ interest rate decision and significant U.S. economic data. This suggests that the current calm period is unlikely to last. The Yen has gained strength due to expectations that the BoJ will raise interest rates at its meeting on December 19. Japan’s core inflation rate was 2.8% last month, well above the BoJ’s 2% target, increasing the need for policy normalization. The derivatives market is pricing in a high chance of at least a 10-basis-point hike. On the other hand, delayed but important U.S. data, including two months of Nonfarm Payroll reports, could impact the market significantly. The forecast for the delayed November report predicts around 180,000 new jobs, suggesting a robust U.S. economy. This is why the dollar is finding support and keeping USD/JPY from falling sharply before the announcements.

Options and Futures Trading Strategies

For options traders, the current uncertainty and low volatility suggest strategies that benefit from large price movements. A long straddle, which involves buying both a call and a put option with a strike price near 155.50, may be a good approach to prepare for a breakout in either direction. The cost of these options could be justified by potential price movements following the BoJ or U.S. data surprises. Futures traders should carefully monitor technical levels as entry points. A sustained drop below the 154.00 support level would indicate that Yen strength is increasing, making short positions towards 153.00 appealing. On the flip side, if the U.S. data is exceptionally strong and the BoJ’s announcement disappoints, moving above the 156.00 resistance could trigger long positions. This week’s events highlight a larger trend we’ve observed throughout 2025: the narrowing interest rate gap between the U.S. and Japan. The spread between U.S. and Japanese 10-year government bonds has compressed from over 400 basis points in early 2024 to about 250 basis points today. This trend provides a supportive backdrop for a stronger Yen in the medium term. Create your live VT Markets account and start trading now.

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Gold prices have stabilized as traders evaluate the Federal Reserve’s position and upcoming economic data. XAU/USD is around $4,296, even as the US Dollar weakens after reaching $4,350 earlier. Fed officials are sending mixed messages; John Williams is taking a more aggressive approach, while Stephen Miran is advocating for quicker rate cuts.

US Economic Data Outlook

Markets are eagerly waiting for US economic data, including Nonfarm Payrolls, Retail Sales, and S&P Flash PMIs. Fed Governor Miran supports a faster approach to rate cuts, while Williams anticipates the Unemployment Rate will hit 4.5% and inflation will reach the 2% target by 2027. GDP growth is projected to be 2.25% by 2026. For November, the US Nonfarm Payrolls are expected to be around 40,000, and Retail Sales are predicted to rise by just 0.2% for October. US Treasuries and real yields remain steady, with the US Dollar Index stable at 98.35. Gold prices show a strong upward trend driven by significant buying pressure, suggesting they might break new highs. However, prices could drop if they fall below certain levels. Gold remains a safe asset during financial instability, with central banks building significant reserves for stability. Its value often rises when the US Dollar and risk assets decline, acting as a hedge against inflation and currency loss. With gold close to its all-time high of $4,381, it seems poised for further gains, especially if the Federal Reserve proceeds with three rate cuts in 2025. The strong upward momentum and bullish Relative Strength Index (RSI) indicate considerable buying interest. Traders may see dips as good buying opportunities, particularly since the US Dollar index is weak at 98.35.

Event Risk Ahead

However, the mixed messages from Fed officials present notable event risk in the near future. While the market expects more cuts in 2026, comments from Fed Chair Powell about a possible pause and hawkish remarks from New York Fed President Williams could lead to a quick price drop. This makes holding long positions risky without protection. This price strength is bolstered by a trend of aggressive purchases by global central banks, starting during the high-inflation periods of 2022 and 2023. Data from the World Gold Council show record acquisitions, as nations diversify away from the dollar. For example, central banks added an unprecedented 1,136 tonnes in 2022, and this trend continues into 2025. This week will be pivotal, with Nonfarm Payrolls and inflation data on the way. A jobs report below the 40K forecast or lower inflation than expected may strengthen the case for rate cuts and push gold beyond its all-time high. Conversely, strong data could support the Fed’s comments about a pause, potentially leading prices back toward the $4,250 support level. Given the strong upward trend but potential for a reversal, buying call options is a smart strategy. This allows participation in a possible breakout towards $4,400 or even $4,500 while limiting risk to the premium paid. It’s wise to consider strikes above the current all-time high to take advantage of new buying momentum. At the same time, the overbought RSI and uncertainty over Fed policy suggest that protective puts are a good option for those already holding long positions. For speculators, buying puts near $4,250 or $4,200 could be advantageous if this week’s economic data is strong, prompting the market to reconsider the pace of future rate cuts. This strategy provides a safeguard against sudden market changes. Since a significant price movement is likely but unclear in direction, considering volatility-based strategies could be beneficial. Options structures like straddles—buying both a call and a put option at the same strike price—could work well. This strategy profits from large price swings in either direction after this week’s key data releases. Create your live VT Markets account and start trading now.

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AUD/USD is falling as the Australian Dollar weakens against a stronger US Dollar. The current trading rate for AUD/USD is about 0.6637, marking its third consecutive day of decline. The US Dollar Index is hovering around 98.34, having bounced back from a low of 98.14. Recently, the US Dollar experienced temporary pressure due to a sharp drop in the New York Empire State Manufacturing Index, which fell to -3.9 in December from 18.7 in November, missing the projected 10.6. Investors are now awaiting the delayed US Nonfarm Payroll reports for October and November, which were pushed back because of a government shutdown.

Federal Reserve and Policy Expectations

Fed policymakers have recently highlighted rising employment risks. Weak labor market data may support more policy easing, even though Fed Chair Powell has cautioned against quick rate cuts. Upcoming US data includes the ADP Employment Change, Retail Sales, and the S&P Global PMI. The Australian Dollar is influenced by weak domestic labor market data and economic indicators from China, its largest trading partner. In November, China’s industrial output rose by 4.8% year-on-year, which was lower than expected, while Retail Sales only increased by 1.3%. Key factors affecting the AUD include interest rates set by the Reserve Bank of Australia, the price of Iron Ore, and China’s economic performance. A strong AUD typically occurs with high interest rates, positive Chinese economic data, and elevated Iron Ore prices. Additionally, a favorable Trade Balance supports the AUD. We recall when AUD/USD was struggling around 0.6637, with market attention on a delayed US jobs report and a recent Federal Reserve rate cut. Fast forward to December 16, 2025, and new factors are influencing the pair. The fundamental drivers we monitored back then have since shifted.

Market Dynamics and Strategies

Now, the attention has turned to potential Federal Reserve easing in 2026, which poses a challenge for the US Dollar. With the Fed Funds rate at 5.50% after a long pause, the November 2025 jobs report showed a rise of only 155,000 jobs, falling short of the expected 180,000. This has strengthened market expectations for rate cuts in the coming year, contrasting with the previous data-dependent approach. Meanwhile, the Reserve Bank of Australia keeps its cash rate steady at 4.35%, but the chances for more hikes have lessened. Softer domestic inflation figures from the third quarter have dampened the need for tighter policies. This situation makes the Australian Dollar sensitive to any signs of economic weakness. Concerns over external pressures that we noted years ago still loom large. China’s economic performance remains a worry, and iron ore prices have eased to about $110 per tonne, a drop from peaks seen earlier in 2025. These factors limit the Australian Dollar’s strength, even as the US Dollar faces its own set of challenges. The contrasting trends between a potentially weakening US Dollar and a constrained Australian Dollar signal increased volatility ahead. Derivative traders should consider strategies that manage this uncertainty, such as using options to define risk on directional bets. For instance, buying AUD/USD call options may be a way to bet on accelerating Fed rate cuts, while puts could provide a hedge against further negative data from China. Create your live VT Markets account and start trading now.

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GBP/USD rose by 0.28% during the North American session, trading close to 1.3400. This follows signals from the Federal Reserve suggesting a potential pause in changing monetary policy, while traders prepare for the upcoming Bank of England (BoE) decision. The British Pound is stable against major currencies as the BoE’s monetary policy week starts. The currency may experience some volatility with upcoming economic data and high expectations of a 25 basis point interest rate cut to 3.75% by the BoE.

GBP/USD Technical Overview

GBP/USD remains steady above the mid-1.3300s and is holding above the 200-day Simple Moving Average. Currently, the spot price is around 1.3360, showing little change. In other currency movements, USD/JPY is weakening near 155.00 due to speculation about a possible rate hike by the Bank of Japan. Australia’s manufacturing PMI rose to 52.2 in December. EUR/USD is trading above 1.1700 as the dollar weakens. Gold prices are stable as traders assess the Federal Reserve’s stance and upcoming data. Ethereum’s price has dropped by 5% after Bitmine acquired 102,259 ETH. Meanwhile, Solana’s value is stabilizing as spot ETF inflows approach $1 billion.

Trader Sentiment and Strategy

We are closely monitoring GBP/USD at around 1.3400 leading up to the Bank of England meeting this week. The market expects a 25 basis point rate cut, especially after the Office for National Statistics reported UK CPI inflation fell to 4.1% last month. This anticipation is making traders cautious, leading to limited movements until the decision is made. The US Dollar’s recent weakness is helping support the pound because the Federal Reserve indicated it may pause rate hikes. This outlook gained traction after the last Non-Farm Payrolls report showed only 155,000 new jobs, suggesting a cooling US economy. The current divide between the BoE easing while the Fed holds rates is driving market activity. For derivative traders, this means an increase in implied volatility for sterling options expiring soon. The market is predicting a significant move, so strategies like straddles or strangles could be effective. Given the sharp market reactions to policy changes in 2023, it’s evident that the first move after such announcements can be powerful. A key technical level to watch is the 200-day moving average at around 1.3360. If the price breaks below this support level after the BoE announcement, it could lead to more selling pressure. Conversely, if the Bank of England surprises everyone by keeping rates steady, we may witness a sharp rally as short sellers cover their positions. In the broader market, the dollar is weaker, with USD/JPY falling below 156.00 amid expectations that the Bank of Japan may tighten its policy soon. Remember how the coordinated central bank rate hikes in 2022-2023 created lasting trends in the currency markets. Over the next few weeks, we’ll see if the Bank of England is set to lead major central banks into a new cycle of rate cuts. Create your live VT Markets account and start trading now.

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The Nasdaq is under pressure as investors move away from tech stocks. The US markets saw some initial gains in the morning, but these faded due to continued selling from last Friday, making this a busy week for economic news. Cryptocurrencies are facing difficulties too, with Bitcoin struggling to stay at $87,000. Even though there are some positive movements, high leverage is adding to the market’s instability.

Foreign Exchange Market

In the foreign exchange market, the EUR/USD has slightly risen to about 1.1750, while the GBP/USD approaches 1.3400. Gold prices have dipped below $4,350 but are still holding steady as the US Dollar declines. Ethereum is facing more challenges as BitMine Immersion significantly boosts its holdings by acquiring 102,259 ETH. Meanwhile, Solana is steady around $131, looking for a possible breakout. The S&P 500 is increasing, while the US 2-year yield stays around 3.50% after a recent Fed rate cut. Solana’s near $1 billion in inflows shows institutional interest, and Forex brokers are being reviewed for 2025.

Market Shifts and Opportunities

The ongoing exit from technology stocks indicates a cautious market shift. With the Nasdaq 100 dropping 4% over the past week, there’s an opportunity to buy put options on tech-heavy ETFs like QQQ to protect against further losses. This idea aligns with recent CFTC data revealing a 15% rise in speculative short positions on Nasdaq futures. Bitcoin’s struggle to maintain the $87,000 level is a significant warning for risk assets. Open interest in Bitcoin futures has fallen 12% in the past week, showing that leveraged long traders are closing out their positions. It may be wise to consider buying puts on spot Bitcoin ETFs or shorting futures contracts, as breaking below this key level could lead to a larger sell-off. With the year-end approaching, many are tempted to take profits, yet the traditional Santa Claus rally is expected to start soon. Historically, this period has been positive for stocks, but current weaknesses suggest a more cautious approach. The CBOE Volatility Index (VIX) has risen to 18, higher than its recent average, making it a good time to buy protective puts on the S&P 500 or VIX call options to safeguard against a potential year-end decline. We are also keeping an eye on the US 2-year yield, which has stabilized around 3.50% after the recent federal rate cut. This situation usually favors non-tech sectors that are sensitive to interest rates, such as industrials and financials. Therefore, buying call options on ETFs like XLI or XLF could be a smart strategy as money shifts from growth to value stocks. Create your live VT Markets account and start trading now.

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The EUR/USD is currently trading at multi-week highs, driven by a weaker US Dollar and a cautious outlook from the Federal Reserve. The Euro has gained strength following last week’s 25 basis point rate cut by the Fed, with the pair now around 1.1760, its highest since early October. The US Dollar Index is close to 98.18, nearing a two-month low. Comments from Fed Governor Stephen Miran have put pressure on the Dollar, suggesting a larger rate cut is needed and that current policies are too strict. He pointed out that shelter inflation is connected to past supply-demand issues, indicating that a faster pace of easing could be suitable.

US Economic Indicators

The New York Empire State Manufacturing Index dropped significantly to -3.9 in December from 18.7 in November, missing the expected 10.6. Several US economic data releases are set for this week, which could impact future Fed policy. Key focus areas include the postponed Nonfarm Payrolls and Consumer Price Index reports. Meanwhile, the Eurozone’s economic calendar is less busy at first. Eurozone Industrial Production increased by 0.8% in October, surpassing expectations. Attention will shift towards upcoming surveys and the European Central Bank’s (ECB) interest rate decision, with the ECB likely to keep rates steady, supporting the Euro’s rise against the Dollar. After last week’s 25 basis point rate cut from the Federal Reserve, marking the first major policy change in over a year, the outlook for the US Dollar has turned negative. A key Fed official has already stated that the current policy is “unnecessarily tight,” hinting that more rate cuts may be on the table. This environment should bolster support for the EUR/USD pair in the short term. With the pair trading around 1.1760, it may be wise to consider strategies that capitalize on further gains while managing risk related to this week’s key data releases. Options like buying call options or implementing bull call spreads on EUR/USD would provide a direct approach to benefit from a stronger Euro. The upcoming US payroll and inflation reports are potential triggers that could push the pair above the 1.1800 mark. The significant drop in the New York Empire State Manufacturing Index to -3.9 is a strong signal for the US economy, especially when compared to the positive performance seen throughout most of 2024. This underscores the Fed’s choice to begin easing policy. The US Dollar Index (DXY) reflects this, currently hovering around 98.18 after peaking above 106 in the third quarter of 2024.

Market Implications

On the other hand, the European Central Bank (ECB) is not facing the same situation and is likely to keep interest rates steady this week. Eurozone core inflation remains persistent, with November data showing a 2.7% year-over-year rise, pressuring the ECB against easing policy. This growing divide between a cutting Fed and a static ECB is a key factor driving a stronger EUR/USD. We should expect increased price fluctuations as implied volatility for EUR/USD is anticipated to rise ahead of crucial US data releases. One-month implied volatility, which was around a low of 5.8% last month, has already increased to 7.2% and may rise further. Buying options now, before this expected volatility spike, could be a cost-effective strategy. If the US jobs and inflation data this week comes in weaker than anticipated, it would reinforce the market’s dovish outlook for the Fed and may lead to a surge in EUR/USD. In such a case, we would plan to target the 1.2000 psychological level, possibly using longer-dated call options expiring in January or February 2026 to capture a sustained trend. Create your live VT Markets account and start trading now.

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**Federal Reserve’s Role in Monetary Policy** The Federal Reserve (Fed) shapes monetary policy in the U.S. to maintain price stability and full employment. The Fed adjusts interest rates to influence the strength of the U.S. Dollar. It holds eight policy meetings each year to discuss economic conditions. During crises, the Fed uses Quantitative Easing (QE) to boost credit availability, which can weaken the U.S. Dollar. In contrast, Quantitative Tightening (QT), which stops bond purchases, strengthens the dollar. Understanding these tools is essential for grasping how the Fed operates and affects the economy. After moving to a neutral policy stance, the period of significant interest rate hikes in 2022 and 2023 has ended. The latest inflation data from November 2025 shows the Consumer Price Index at 3.1%. This allows the Fed to approach its 2% target patiently. Consequently, derivative traders should not expect any sudden policy changes in the upcoming weeks. **Volatility and Market Strategies** With the Fed holding its position, volatility in short-term interest rate futures will likely decrease. This situation may benefit strategies aimed at profiting from stable price movements, such as selling straddles or strangles on SOFR options. The market currently sees a low chance of a rate cut before the second quarter of 2026, supporting this steady outlook. Attention is now on the labor market, especially as the unemployment rate recently rose to 4.4%, close to the year-end forecast of 4.5%. If future employment data shows more weakness, expectations for an earlier rate cut could increase, making equity index options more sensitive to these reports. Meanwhile, a projected GDP rebound in 2026 from a sluggish 1.5% in 2025 encourages a positive view on equities. This neutral Fed stance weakens the case for a stronger U.S. Dollar, as its yield advantage over other currencies diminishes. A similar trend was observed in late 2023 when the Fed first indicated a pause, causing a temporary decline in the dollar. Traders might consider strategies that profit from a weaker dollar, such as purchasing call options on currency pairs like EUR/USD. A stable interest rate outlook is generally supportive of non-yielding assets like gold, lowering the opportunity cost of holding it. Additionally, the anticipated rebound in economic growth next year should benefit industrial commodities. This indicates a potentially positive environment for both precious metals and energy derivatives as we move into the new year. Create your live VT Markets account and start trading now.

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