Factors impacting these movements include safe-haven demand driving gold near the $5,000 mark and mixed US data leaving the EUR\/USD steady around 1.1750. In other developments, Bitcoin experienced a dip below $90,000 due to Trump’s tariffs influencing price swings and ETF outflows.<\/p>\n
Upcoming events include meetings by the Fed and BoC amid geopolitical tensions, which could further affect market trends. In response, some financial institutions, like UBS Group, are exploring offering Bitcoin and Ethereum options to certain private clients.<\/p>\n
With the US Dollar hitting five-week lows, we are seeing a clear trend that should be exploited. Implied volatility is rising ahead of the Federal Reserve meeting, with the VIX index holding stubbornly above 20. Options strategies that benefit from large price swings, such as long straddles, should be considered on major pairs like EUR\/USD and the dollar index itself.<\/p>\n
The strong Canadian retail sales data from November 2025, which came in at 1.7%, signals underlying strength in their economy. This contrasts sharply with the situation in the US, where cooling inflation data from last week has increased bets on a Fed rate cut. This policy divergence makes going long the Canadian dollar against the US dollar a compelling trade, potentially using futures or call options on the CAD.<\/p>\n
Gold\u2019s rapid approach to $5,000 is a direct result of both a flight to safety and aggressive US dollar selling. We saw a similar dynamic in 2024 when fears of a global slowdown pushed gold up 15% in a single quarter. Traders should look at buying call options with strike prices above $5,000 to capitalize on this powerful momentum.<\/p>\n
The Japanese Yen is another critical focus, as the threat of intervention from officials grows louder with every slump in USD\/JPY. A “rate check” is often the final warning before direct market action, which could cause a sudden and sharp drop in the currency pair. Buying cheap, out-of-the-money put options on USD\/JPY offers a limited-risk way to profit from such a volatile event.<\/p>\n
Meanwhile, currencies like the British Pound and the Euro are hitting multi-month highs, riding the wave of broad dollar weakness. This isn’t just a technical breakout; it is supported by fundamentals as Fed funds futures now price in a greater than 70% chance of a rate cut by March. We should anticipate this trend of dollar selling to continue intensifying as the Fed decision looms.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Canada\u2019s retail sales beat forecasts; gold surges, dollar dips; Bitcoin drops; central bank meetings ahead.<\/p>\n","protected":false},"author":62,"featured_media":16967,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40014","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\/40014","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=40014"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16967"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}