Canada’s housing starts for December reached 282.4K, surpassing expectations set at 260K. This data provides a positive outlook for the construction sector at the close of the year.<\/p>\n
In the currency market, the USD\/JPY fell to 158.00 due to strength in the Yen, while the US Dollar’s rise affected both EUR\/USD and GBP\/USD. Gold prices weakened, falling below $4,600 per troy ounce, driven by geopolitical developments and a stronger Dollar.<\/p>\n
Cryptocurrencies such as Bitcoin, Ethereum, and XRP are holding key support levels despite diminishing retail demand. Bitcoin remains above $95,000, with Ethereum and XRP trading closely around average moving markers.<\/p>\n
Looking ahead, key US economic data and the BoJ’s decisions are anticipated to influence market directions. The US PCE and PMIs will guide expectations on Fed activities, with BoJ’s focus on guidance post-elections.<\/p>\n
In the cryptocurrency market, Dash has climbed despite broader market adjustments, hitting an intraday high of $96.85. This is partly due to heightened retail interest, as seen in increased futures open interest reaching $165 million.<\/p>\n
The surprise jump in Canadian housing starts to 282.4K, a level we have not consistently seen since the 2021 boom, points to unexpected economic resilience. With Canadian inflation data from late 2025 still showing stickiness around 2.9%, we see a higher probability the Bank of Canada will delay any planned rate cuts. This makes buying call options on the Canadian dollar, or selling USD\/CAD futures, a compelling strategy for the coming weeks.<\/p>\n
Fed Governor Bowman\u2019s concerns about labor market fragility seem justified, particularly after the December 2025 nonfarm payrolls report showed job growth slowing to 160,000. Despite this, the dollar remains strong, creating tension ahead of the crucial US PCE inflation data next week. We believe buying volatility through options straddles on major pairs like EUR\/USD is a prudent way to trade the potential data-driven breakout.<\/p>\n
The stark divergence in precious metals, with silver at a record $93.75 while gold weakens below $4,600, is a clear signal. This has driven the gold-to-silver ratio down to 49, significantly below the 10-year average of around 75 that we observed through the early 2020s. We see a clear opportunity for a pairs trade here, using futures to go long gold and short silver in anticipation of a reversion to the historical mean.<\/p>\n
We are watching the USD\/JPY pair test the 158.00 level, a zone that has historically triggered verbal and physical intervention from Japan’s Ministry of Finance, as we saw back in 2024. With the Bank of Japan meeting next week, implied volatility on yen options is elevated. Traders should consider buying short-dated USD\/JPY put options to speculate on a sudden, intervention-fueled decline.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Canada’s housing starts rise, USD\/JPY falls, gold weakens; Bitcoin holds steady, Dash surges on interest.<\/p>\n","protected":false},"author":62,"featured_media":17049,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-39394","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t