The Change in Consumer Price Growth<\/p>\n
In other market news, the EUR\/USD remains steady near 1.1800, attributed to a retreat in the USD. Meanwhile, the GBP\/USD has reduced gains, settling below 1.3700 as the market mood becomes cautious.<\/p>\n
The price of gold has surged by 6%, challenging the $4,950 mark. In contrast, USD\/CHF has declined due to a US budget impasse and increased demand for the Swiss Franc as a safe haven.<\/p>\n
In cryptocurrency updates, Zilliqa’s price soared over 20% in anticipation of the Cancun EVM upgrade. Additionally, macroeconomic outlooks show improvement despite ongoing geopolitical issues.<\/p>\n
For 2026, various detailed guides are available for selecting best brokers, including those focused on forex, CFDs, and specific regions such as MENA and Latam. These guides detail the pros and cons of the major brokers and outline options for cost-conscious and leverage-seeking traders.<\/p>\n
Eurozone Disinflationary Trend<\/p>\n
The drop in French inflation to -0.3% is a major signal for us, confirming the disinflationary trend we saw across the Eurozone in the final quarter of 2025. This data puts significant pressure on the European Central Bank to maintain a dovish stance in its upcoming meetings. We expect this will make it difficult for the Euro to sustain any rallies.<\/p>\n
This points towards viewing any strength in EUR\/USD as a selling opportunity, and we are looking at put options on the Euro to position for further downside. The market is now pricing in a less than 20% chance of an ECB rate hike this year, a sharp decline from the 50% odds we saw back in November 2025. A break below the 1.1750 support level could accelerate selling pressure on the pair.<\/p>\n
In contrast, the US economy looks robust, with the latest jobs report showing a strong addition of 250,000 new payrolls in January, beating all expectations. This continues the trend of resilient American economic performance that we observed for much of last year. Consequently, the US dollar remains the favored currency, benefiting from fundamental weakness elsewhere.<\/p>\n
While political noise from the budget impasse in Washington creates some short-term turbulence, the underlying economic data supports a stronger dollar. We are favoring long positions in the US dollar index (DXY), particularly against the Euro. Call options on USD\/CAD could also be attractive, as a strong US economy tends to pull the Canadian economy along with it, but the stronger greenback often dominates the pair’s movement.<\/p>\n
Gold’s powerful move to challenge the $4,950 level shows that underlying market uncertainty remains high. The metal has more than doubled in price since the inflationary spikes of 2024, acting as a key hedge for institutional portfolios. We see this recent rebound as a continuation of that long-term strategic buying.<\/p>\n
Given the sharp rebound from the four-week lows, we are cautious about establishing new short positions; buying on dips appears to be the dominant strategy. Look for volatility to increase, where long straddles using options could be a way to trade a significant price move without needing to predict the direction. Key technical support to watch now sits around the $4,670 level.<\/p>\n
Sterling is treading water ahead of the Bank of England’s interest rate decision later this week. With UK inflation proving stickier than in Europe, hovering near 3.5% in the last official reading, the BOE is in a difficult position. The market is deeply divided on whether policymakers will signal a hawkish hold or hint at future cuts later in the year.<\/p>\n
This uncertainty means implied volatility in the options market for GBP\/USD is rising ahead of the meeting. A straddle or strangle on the pair is the most sensible approach to trade the expected price swing following the announcement. Any surprise from the central bank could easily trigger a 150-pip move in either direction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" France\u2019s CPI drops, gold surges 6%, Zilliqa jumps 20%, EUR\/USD steady, traders eye broker guides.<\/p>\n","protected":false},"author":62,"featured_media":17028,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40796","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\/40796","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=40796"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40796\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/17028"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}