In September, the United States recorded 1.415 million building permits. This marks an increase from August’s 1.312 million.
The US dollar strengthens, impacting currencies like the Canadian dollar and Japanese yen. The Canadian dollar faces pressure due to oil, while the yen reacts to adjustments in Federal Reserve expectations.
Pound Sterling Performance
The pound sterling experienced a drop, trading below 1.3450 in response to US nonfarm payrolls data. Gold continues its upward trend, nearing yearly highs around $4,500 per troy ounce.
Cryptocurrency markets reflect persistent concerns with Bitcoin maintaining $90,000 and XRP facing low retail demand. Ethereum remains fragile amidst ongoing ETF outflows despite stabilising above $3,000.
Looking ahead, the US Consumer Price Index (CPI) could affect the US dollar next week. The release of US CPI data will coincide with ongoing geopolitical developments, which may influence market trends.
In 2026, traders have various brokerage options tailored to specific needs. Among the top considerations are regulated brokers, those offering low spreads, and others with platforms like MT4.
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Based on the strong US Dollar, we believe the path of least resistance for other major currencies is downward. Last month’s December 2025 jobs report was strong enough to push expectations for a Federal Reserve rate cut further out, with futures markets now pricing in less than a 30% chance of a cut by March. This suggests traders should consider bearish positions on currencies like the Euro and the Pound.
The EUR/USD pair is breaking key support levels, and the story is similar for GBP/USD, which is now testing its 200-day moving average. The policy gap between a hawkish Fed and more cautious central banks in Europe will likely continue to pressure these pairs. We see opportunities in buying puts on the Euro, targeting a move toward the 1.1600 level in the coming weeks.
Despite the dollar’s strength, gold is showing impressive resilience near $4,500 an ounce, acting as a clear hedge against geopolitical risk. Uncertainty surrounding a potential US Supreme Court ruling on trade tariffs is making investors nervous, and this is supporting gold prices. Buying call options on gold could serve as a valuable portfolio hedge against any sudden risk-off events.
With the crucial US Consumer Price Index (CPI) report landing next Tuesday, we should prepare for a spike in market volatility. The VIX, a measure of expected market volatility, has been relatively low, trading around 14 for the past month, making options contracts cheaper than they were in late 2025. This presents a good opportunity to use strategies that profit from a big price swing, regardless of direction.
The crypto market remains weak as institutional demand seen in the fourth quarter of 2025 has clearly faded. Last week alone, digital asset investment funds saw net outflows of over $500 million, signaling a broad retreat from the space. This bearish sentiment suggests that shorting futures or buying puts on Bitcoin and Ethereum could be a prudent strategy.
