EUR\/USD remains steady at around 1.1650 as the European Central Bank’s Isabel Schnabel expresses comfort with potential rate hikes. The swaps curve suggests steady ECB rates at 2.00% over the next year and a 25 basis points increase in the next two years.<\/p>\n
EUR\/USD needs to surpass resistance at 1.1690 for upward movement. Market participants are cautious ahead of an important Federal Reserve policy meeting, keeping EUR\/USD in a consolidation phase after two weeks of bullish action.<\/p>\n
The US Dollar strengthens due to increased risk aversion, making it challenging for GBP\/USD to build momentum. Gold declines, remaining below $4,200, as traders gear up for the Fed meeting, which will impact short-term policy perspectives.<\/p>\n
Cryptocurrencies like Bitcoin and Ethereum see minor recoveries, with retail demand strong despite outflows from ETFs. Silver reaches a new all-time high, contrasting with a reversal in gold and mining stocks, indicating different market dynamics.<\/p>\n
FXStreet provides forward-looking information, which carries risks and uncertainties. It should not be seen as a recommendation to buy or sell assets. Thorough research is advised, as open market investments involve risk and potential losses.<\/p>\n
We see the EUR\/USD pair holding firm near 1.1650, supported by the European Central Bank signaling its comfort with a future rate hike. This is a notable change after the sustained rate-cutting cycle we witnessed through 2024. Recent Eurostat figures showing headline inflation in November 2025 firming up to 2.3% give credibility to the idea that the ECB’s easing phase is firmly behind us.<\/p>\n
For derivative traders, this creates a clear line in the sand at the 1.1690 resistance level. With the upcoming Federal Reserve meeting likely to inject volatility, buying short-dated call options with strikes above 1.1690 could be an effective way to position for a bullish breakout. However, the premium paid for these options will be high, reflecting the market’s uncertainty.<\/p>\n
The broader market is cautious, which reminds us of the periods of consolidation seen in late 2023 before major central bank policy pivots. The U.S. Dollar Index (DXY) has climbed 0.5% in the past week to 104.20, showing that traders are bracing for the Fed’s decision. This tense environment suggests that strategies like straddles or strangles, which profit from a large price move in either direction, may be worth considering on major pairs.<\/p>\n
In commodities, gold is feeling the pressure from the strong dollar, pulling back below $4,200 an ounce. This high valuation, a result of years of central bank buying and persistent geopolitical risk, makes it vulnerable to shifts in Fed policy. Traders holding long positions could look at buying put options as a hedge against a more hawkish-than-expected statement from the Fed.<\/p>\n
We are also watching the unusual divergence where silver recently hit a new all-time high while gold did not. This suggests strong industrial demand or unique speculative interest is driving the silver market independently. This opens up opportunities for pair traders using the gold-silver ratio, which has now fallen to its lowest level since early 2024, to bet on whether this disconnection will continue or revert.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EUR\/USD holds steady; ECB hints at rate hikes. Markets await Fed decision; gold, crypto mixed.<\/p>\n","protected":false},"author":62,"featured_media":16964,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-36276","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-ca\/wp-json\/wp\/v2\/posts\/36276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=36276"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/36276\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16964"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=36276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=36276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=36276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}