The GBP CFTC net positions increased to \u00a3-48.5K from \u00a3-75.5K. This change reflects shifts in market sentiment toward the GBP.<\/p>\n
The USD\/CAD rebounded as the US dollar recovered, with oil support weakening for the Canadian dollar. Meanwhile, the EUR\/USD drifted lower on thin trading and a cautious sentiment.<\/p>\n
EUR\/GBP price showed a marginal decline as the Bank of England supported the pound, while the ECB steadied the euro. USD\/CHF regained ground below 0.7900, indicating shifts in market trends.<\/p>\n
GBP\/USD retreated below 1.3500 amidst thin trading conditions following Christmas. Gold extended its correction from a record high, pushing lower due to optimism regarding a Ukraine-Russia peace agreement.<\/p>\n
Bitcoin, Ethereum, and XRP gained strength, recording roughly 3% gains as selling pressure waned. Amidst ongoing peace talks between Russia and Ukraine, the technical outlook for cryptocurrencies becomes bullish.<\/p>\n
Economic projections for 2026-2027 indicate a potential year of solid performance, assuming supportive factors from 2025 continue. Avalanche struggles near $12 as Grayscale updates its ETF filing with the US Securities and Exchange Commission.<\/p>\n
We are seeing a significant shift in sentiment towards the British Pound, with speculators cutting net short positions from \u00a3-75.5K to \u00a3-48.5K. This indicates that bearish bets against the sterling are unwinding ahead of the new year. Traders should consider that a short squeeze could be building, especially as thin holiday liquidity can exaggerate price movements.<\/p>\n
This change comes as the Bank of England holds rates steady to combat inflation, which UK data showed was still at 3.1% in the November 2025 figures. With the market seeing less risk in the Pound, derivative traders might look at buying call options on GBP\/USD to capture potential upside in early 2026. This strategy offers a defined-risk way to position for a rebound from the recent dip below 1.3500.<\/p>\n
Looking at the broader market, gold’s retreat from its record high near $4,550 suggests a slight increase in risk appetite. This move away from safe havens aligns with the renewed strength seen in cryptocurrencies like Bitcoin and Ethereum. Since the landmark approval of spot Bitcoin ETFs back in early 2024, institutional flows have become a key driver, and this holiday season strength could signal a bullish start to 2026.<\/p>\n
All eyes will soon turn to the minutes from the Federal Reserve’s December 2025 policy meeting. With the Fed Funds rate holding at 4.75% for the last two quarters, any hint of a dovish pivot could weaken the US Dollar and further boost risk assets. We should anticipate an increase in volatility around this release, making straddles or strangles on major currency pairs a viable strategy to trade the outcome.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" GBP rises on sentiment shift; USD rebounds; gold, crypto ease; EUR softens; 2026 outlook remains positive.<\/p>\n","protected":false},"author":62,"featured_media":17036,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-37826","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/37826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=37826"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/37826\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17036"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=37826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=37826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=37826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}