In September, the change in US building permits rose to 6.4% from the previous month\u2019s figure of -3.7%. This data reflects a positive shift compared to prior negative numbers.<\/p>\n
Gold continues to gain traction, settling above $4,500 and projecting a 4% weekly increase following US Nonfarm Payrolls (NFP). Despite a stronger US Dollar, the yellow metal finds support amid a risk-off market sentiment.<\/p>\n
The USD\/CAD pair experiences gains due to a stronger US Dollar, while the Canadian Dollar faces pressures from lower oil prices. Meanwhile, the USD\/JPY remains steadfast near its one-year highs as markets revise expectations on Federal Reserve cuts.<\/p>\n
The GBP\/USD experiences a decline, trading below 1.3400 and faced with performance pressure from the US Dollar. The pair struggles to stay above critical support levels amid a backdrop of subdued nonfarm payrolls.<\/p>\n
In the crypto space, Bitcoin remains stable at $90,000, yet it stays below its 50-day EMA, indicating weak institutional demand. Ethereum remains steady above $3,000 but also shows signs of vulnerability due to ETF outflows, while XRP experiences continued pressure.<\/p>\n
Given the strong labor data from December 2025, we are seeing the market drastically reduce the odds of a Federal Reserve rate cut in January. This recalibration is fueling a significant rally in the US Dollar. Options traders should note that the CME’s FedWatch Tool now implies less than a 15% chance of a cut this month, a sharp reversal from the nearly 50% odds priced in just a few weeks ago.<\/p>\n
The underlying American economy is showing surprising resilience, justifying the Fed\u2019s cautious stance. The recent report of a 6.4% surge in building permits back in September 2025 looks less like an outlier now and more like an early signal of renewed momentum. This contrasts with the slowdown we witnessed in the housing sector during the first half of 2025, suggesting economic activity is firm enough for the Fed to hold rates steady.<\/p>\n
Gold’s powerful move above $4,500 an ounce is the most telling signal of underlying market fear, especially since it is happening alongside a strengthening dollar. This is not typical behavior and points towards persistent geopolitical risks and continued aggressive purchasing by central banks, a trend that accelerated throughout 2025. Derivative traders should consider this a hedge against risks that monetary policy can’t control.<\/p>\n
This environment puts direct pressure on currencies like the Pound and the Euro. With GBP\/USD now below 1.3400 and EUR\/USD targeting 1.1600, bearish positions look attractive. The upcoming US Consumer Price Index (CPI) report is the next major hurdle; another hot inflation reading, similar to the 3.4% we saw in the December 2025 report, would likely cement the case for no near-term rate cuts and push these pairs lower.<\/p>\n
The “higher for longer” interest rate outlook is also creating a difficult environment for riskier assets. We see this in the crypto space, where institutional demand is slowing and Bitcoin is struggling to stay above $90,000 despite a positive start to the year. The outflows from Ethereum ETFs, which have now totaled over $500 million since late 2025, show that investors are moving away from non-yielding assets in favor of the dollar.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US building permits rise; gold rallies despite strong dollar; crypto markets show mixed but vulnerable trends.<\/p>\n","protected":false},"author":62,"featured_media":16959,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-38743","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\/38743","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=38743"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/38743\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16959"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=38743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=38743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=38743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}