The UK’s Producer Price Index (PPI) Core Output for December showed a decline of 0.1% compared to the previous month, which remained unchanged at 0%. This decrease reflects adjustments in the prices that producers charge for their products.<\/p>\n
In currency markets, the EUR\/USD has edged lower, retreating to 1.1700 after a recent rally, while GBP\/USD trades below 1.3450 post mixed UK inflation data. Annual CPI inflation in the UK rose to 3.4% in December from November’s 3.2%, with the core CPI aligning with expectations at 3.2%.<\/p>\n
Gold, having reached close to an all-time high of $4,900, corrected slightly to maintain a level above $4,800. Meanwhile, Bitcoin, Ethereum, and Ripple experienced corrections of 5%, 10%, and 5%, respectively, with momentum indicators suggesting further bearish trends.<\/p>\n
In the US, President Trump has indicated potential new tariffs on several European countries, with a proposed 10% tariff starting February 1. BNB, affected by the crypto market downturn, saw a 1% drop as declining retail interest impacted futures Open Interest. <\/p>\n
FXStreet provides these insights, emphasising the need for thorough research before making investment decisions due to the inherent risks. The information shared does not constitute investment advice or recommendations from FXStreet.<\/p>\n
With gold holding firm above $4,800, we should prepare for a potential test of the $4,900 record high. The flight to safety is being driven by the threat of new US tariffs on the EU, so buying call options on gold or gold-backed ETFs could offer upside exposure. Looking back, we saw similar rushes into safe havens during the geopolitical scares of 2024 and 2025.<\/p>\n
The Euro is particularly vulnerable ahead of the US President’s speech, and we see it struggling near the 1.1700 level. Any confirmation of the 10% tariffs would be a significant blow, especially considering US-EU trade in goods was valued at over $900 billion in 2024. Traders should consider buying put options on the EUR\/USD as a direct play on this risk.<\/p>\n
We are seeing a fragile bounce in equity futures after a major slump, but this relief may be short-lived. The market’s fear is real, reminding us of the volatility spike in October 2025 when the VIX jumped over 20. Hedging portfolios by purchasing puts on major indices like the S&P 500 is a prudent strategy until we get clarity on the trade situation.<\/p>\n
In the UK, the data is sending mixed signals with consumer inflation rising to 3.4% while producer prices actually fell by 0.1%. Normally, rising inflation would support the Pound, but the currency is being held down below 1.3450 by the global risk-off mood. The tariff threat, which explicitly includes the UK, is the dominant factor that will likely cap any significant gains for now.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" UK PPI dips, GBP and EUR retreat; gold eases near highs, crypto corrects amid bearish momentum.<\/p>\n","protected":false},"author":62,"featured_media":17034,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-39733","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\/39733","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=39733"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39733\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17034"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=39733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=39733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=39733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}