Construction spending in the United States decreased from 0.2% to -0.6% compared to prior month

by VT Markets
/
Jan 22, 2026

In September, construction spending in the United States dropped from 0.2% to -0.6%. This decline reflects changes in economic activity and investment within the construction sector over the month.

Market movements, including currency fluctuations and geopolitical events, are affecting global finance. In related news, the USD/JPY is steady at 158.00 amidst Japan’s fiscal worries, while the Dow Jones Industrial Average has seen an uptick due to U.S. reassurances over Greenland.

Global Financial Market Updates

Financial and market updates from around the world include shifts in major indices and currencies. The EUR/USD has moved below 1.1700, responding to a stronger US Dollar, while GBP/USD sees variability around the 1.3430 mark.

In commodities and cryptocurrency markets, gold set a new peak at $4,900 per ounce amid weak risk appetite. AI tokens and Monero observed declines, influenced by ongoing geopolitical concerns and market instability.

Analysts provide a cautious approach regarding investments, stressing the importance of thorough research and awareness of market risks. Many financial resources are designed for educational purposes and potential investors are urged to consult professional advice before making financial decisions.

Current Market Analysis

Given the market’s current state on January 21, 2026, we are facing significant crosscurrents that require careful positioning. The weak US construction spending data we saw back in September 2025, which showed a drop to -0.6%, continues to signal underlying economic fragility. This suggests a cautious stance on sectors tied to domestic growth.

Volatility is the dominant theme, driven primarily by the ongoing geopolitical tensions over Greenland. We should expect sharp, headline-driven moves in the market, reminiscent of the VIX spikes seen during the crises of the early 2020s. Derivative traders should consider buying options to hedge risk or profit from these swings, as straddles on major indices could perform well.

Gold remains the clearest safe-haven asset, having already broken records last year. The surge past $4,700 is supported by a multi-year trend of massive central bank purchases, with institutions like the People’s Bank of China consistently adding to their reserves since 2022. We believe using call options or long futures contracts on gold is a prudent strategy to ride this momentum.

The US Dollar is acting as a relative haven, strengthening against the Euro despite poor domestic data from late 2025. This is because the EU is directly embroiled in the Greenland dispute, making the Euro less attractive for now. We see opportunities in shorting the EUR/USD pair, potentially through put options, as long as these transatlantic tensions remain elevated.

Riskier assets, such as the AI-related tokens and the broader crypto market, are showing clear weakness in this environment. The sell-off is a classic flight from speculative investments during times of high uncertainty. Traders should be cautious about long positions here and could even consider shorting these assets until geopolitical clarity emerges.

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