Canada’s Ivey Purchasing Managers Index was recorded at 51.9 in December, beating the expected 49.5. This implies an expansion in the sector, as any reading above 50 indicates growth.
In related market updates, the US Dollar is stable amid mixed US data, affecting other currencies like the Canadian Dollar due to a decline in oil prices. Ripple is trading at $2.22 as fears in the cryptocurrency market are reversing gains from earlier in the year.
Precious Metal Market
The precious metal market shows gold at $4,450 per troy ounce, following a decrease due to strong US data affecting its demand as a haven asset. The GBP/USD pair is under pressure, reaching daily lows near 1.3470, influenced by the stronger US Dollar.
The EUR/USD has extended a bearish trend, with the dollar gaining marginally ahead of key US economic data. Nonetheless, Gold’s price downside is limited due to falling US Treasury yields, despite the stronger dollar’s impact.
For 2026, analysts expect relative stability, with no repeat of 2025’s shocks. Best broker recommendations for various financial products are provided for traders seeking competitive options in the forex, commodity, and CFD markets.
Impact of Falling Oil Prices
The better-than-expected Canadian purchasing managers’ index suggests underlying strength in the Canadian economy. However, the Canadian dollar is currently being weighed down by falling oil prices. This divergence between strong domestic data and commodity weakness creates a complex environment.
We believe this sets up a potential conflict for the currency in the coming weeks. Looking back at the patterns of 2025, we often saw that strong domestic data was not enough to boost the Canadian dollar when oil prices were falling. Therefore, traders might consider using options strategies on USD/CAD to hedge against the competing pressures.
Meanwhile, the primary market driver remains the United States, with a firming US dollar pressuring other major currencies. The upcoming US Non-Farm Payrolls (NFP) report this Friday is the main event everyone is watching. We saw how a stronger-than-expected NFP report in the third quarter of 2025 sparked a significant dollar rally.
Given that recent US data has been solid, another strong jobs number could add to the dollar’s momentum. Current market consensus for job growth is hovering around 180,000. Derivative traders should be prepared for increased volatility around the NFP release, as a significant beat or miss will likely move the market.
Gold is in a precarious position, having pulled back from the $4,500 level. Its decline is being driven by the strong US dollar, which makes gold more expensive for foreign buyers. However, falling US Treasury yields, with the 10-year yield dipping below 3.8% last week, are providing some support by lowering the opportunity cost of holding the non-yielding metal.
This tug-of-war suggests that gold may remain range-bound in the near term. With support near $4,450 and resistance at $4,500, we could see derivative plays like iron condors become attractive. Such a strategy would profit if gold’s price remains stable and does not break out in either direction over the coming weeks.
