India’s HSBC Services PMI fell to 58 in December, down from 59.1 the previous month. This marks a slight decrease in the measure of the country’s services sector growth.
EUR/USD was predicted to trade between 1.1695 and 1.1750. Meanwhile, Dow Jones futures experienced a drop due to profit-taking and geopolitical uncertainty.
Market Influences
Oil prices have been volatile, influenced by the arrest of Maduro. Conversely, the gold market remained strong near a one-week high amidst geopolitical risks and speculation on Federal Reserve rate cuts.
Solana saw significant growth, climbing above $137 due to increased demand for spot ETFs. The asset recorded positive inflows surpassing $16 million on Monday, marking the highest since mid-December.
Looking to the future, several brokers for trading in 2026 are highlighted, based on different criteria such as low spreads and high leverage. Additionally, FXStreet provides a disclaimer, noting that market investments involve numerous risks and uncertainties.
After the chaotic market action we saw in 2025, the new year is already signaling that volatility is here to stay. The VIX index, which tracks market fear, averaged above 25 in the final quarter of last year, significantly higher than its historical mean. Derivative traders should therefore consider strategies that profit from price swings, like long straddles on major indices.
Safe Haven Assets
Geopolitical risks are clearly supporting safe-haven assets, especially with tensions flaring up from Venezuela to the Middle East. With gold pushing toward $4,465, buying call options offers a way to participate in further upside while clearly defining your maximum risk. We have seen a consistent build-up in net long positions in gold futures, suggesting strong institutional conviction behind this move.
The US Dollar continues to look weak, a trend that accelerated in late 2025 when the Dollar Index fell by over 3% in a single quarter. Fed funds futures are currently pricing in a more than 70% probability of a rate cut by the end of March, which could add further pressure. This environment makes buying futures or call options on pairs like EUR/USD and GBP/USD an attractive strategy.
We are also seeing early signs of a growth moderation in India, with the latest services PMI falling to 58. While this is still a strong reading, it is a notable dip after the blistering pace set in 2025. This may slow the Indian Rupee’s appreciation, warranting caution for anyone holding aggressive short positions in the USD/INR pair.
A major event on the near-term calendar is the Supreme Court ruling on presidential tariff powers. The market is overwhelmingly positioned for these powers to be struck down, which would likely boost equities. Traders could use cheap, out-of-the-money put options as a low-cost hedge against the small but high-impact risk of a surprise ruling.
