In January, South Africa reported total new vehicle sales of 50,073. This shows a rise compared to 48,983 vehicles sold in a previous period.
The US ISM Manufacturing PMI improved to 52.6 in January, exceeding market expectations of 48.5. The geopolitical landscape has influenced commodities, with gold stabilising after a prior steep correction.
Pressure On Gold And Cryptocurrencies
Gold prices hover around $4,720 despite pressure from a strong US Dollar following Kevin Warsh’s nomination as the next Fed chair. Cryptocurrencies faced volatility; Bitcoin consolidated above $77,000, while Ethereum extended losses toward $2,000 amid ETF outflows.
Ripple (XRP) saw low on-chain activity, with active addresses dropping below 18,000. Retail interest in XRP has waned, reflecting in futures Open Interest, which fell to $2.81 billion.
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The strong US dollar is the dominant theme right now, and we expect this to continue in the coming weeks. The US ISM manufacturing index just printed at 52.6, which is not only a huge beat over the expected 48.5 but is also the strongest reading we have seen in over a year. This, combined with the nomination of a hawkish Fed chair, suggests that betting against the dollar is a risky move.
Effects Of The Stronger Dollar
This dollar strength is putting clear pressure on other major currencies, with EUR/USD now testing the 1.1800 level. We see GBP/USD is similarly weak around 1.3650 ahead of the next Bank of England meeting. For derivatives traders, this environment favors strategies like buying put options on the Euro and Pound futures or maintaining short positions against the dollar.
Gold is also feeling the impact of a stronger greenback and the prospect of higher interest rates. After the significant rally we saw in the second half of 2025, the metal is struggling to hold its ground, hovering near $4,720. This correction could present an opportunity for traders to look at short-selling gold futures or buying puts, as the fundamental backdrop has shifted against precious metals.
However, emerging markets are showing surprising resilience, which aligns with HSBC’s recent positive outlook. South Africa’s new vehicle sales for January came in strong at 50,073 units, a significant jump of nearly 20% compared to the same month last year. This suggests that there is underlying strength in some economies, and traders might consider call options on specific emerging market ETFs as a way to diversify.
The cryptocurrency market remains in a clear downtrend, with declining retail interest and mixed flows from exchange-traded funds. Bitcoin is struggling to stay above $77,000 while active addresses on networks like XRP have fallen sharply, showing reduced engagement. We believe traders should remain cautious here, with strategies like buying protective puts or selling call spreads being more prudent than looking for a bottom.
