China’s Gross Domestic Product (GDP) for the fourth quarter grew by 1.2%, exceeding the expected 1%. This indicates an improvement as the nation maintains a steady economic growth.
The EUR/USD pair is gaining above 1.1600 due to Europe countering tariff threats from Trump. The Australian Dollar is benefitting from China’s increase in industrial production, showcasing positive movements in Forex markets.
Gold Prices Rising
Gold prices rise in both India and Malaysia, reflecting an upward trend in precious metals during uncertain geopolitical times. Meanwhile, the USD/CAD rate falls near 1.3900 as the Canadian dollar strengthens following higher oil prices.
Bitcoin, Ethereum, and Ripple are experiencing price corrections amid potential trade war concerns between the EU and the US. Simultaneously, Dash continues its upward momentum, reaching an intraday high.
Various Forex brokers are reviewing their top-notch services for 2026, projecting their low spreads, high leverage, and the benefits of trading Gold, in various regions including MENA and Indonesia. These insights are intended to aid traders in maximising their trading strategies and outcomes.
The stronger-than-expected Chinese GDP data, coming in at 1.2%, points to continued demand for Australian commodities. We saw how closely the Aussie dollar tracked signs of China’s economic recovery throughout 2025. For the coming weeks, we should consider buying call options on the Australian dollar to capitalize on this, as Australia’s exports to China accounted for over 30% of its total exports in the last fiscal year.
Geopolitical Tensions and Gold Prices
Geopolitical tensions surrounding the US and Greenland are driving a massive flight to safety, pushing gold to a record $4,700. We remember the gold rallies during the trade disputes of 2025, which followed a similar pattern to the spikes seen during the 2018-2019 period. Buying gold futures or call spreads seems prudent to hedge against further escalation, even at these elevated levels.
The clash between positive growth signals from Asia and escalating trade war fears out of the US is a recipe for volatility. With the CBOE Volatility Index (VIX) having already jumped 15% in the last week of December 2025, we anticipate further swings across major indices. Long-dated call options on the VIX could be an effective portfolio hedge against the growing uncertainty.
The US dollar is weakening against European currencies not just from tariff threats, but also from perceived political pressure on the Fed. We saw similar dollar softness in late 2025 when Fed independence was first questioned. Given that Eurozone inflation showed signs of persistence last year, averaging above the 2% target, call options on EUR/USD near the 1.1600 level look attractive.
Higher oil prices are directly boosting the Canadian dollar, pushing USD/CAD towards 1.3900. With geopolitical risk typically supporting energy prices, this trend is likely to continue in the short term. We can look at selling put options on USD/CAD to profit from further Canadian dollar strength, especially as Canada’s oil exports make up nearly 20% of the country’s total export value.
