In December, Canada’s Industrial Product Price Index fell by 0.6%, which did not meet the expected growth of 0.3%. This decrease indicates a contrasting performance compared to forecast projections.<\/p>\n
President Trump made a speech at the World Economic Forum in Davos. During his speech, he stated that only the US can secure Greenland, reflecting ongoing discussions about Greenland. <\/p>\n
The foreign exchange market saw changes with EUR\/USD easing towards 1.1700 after a short rise. Meanwhile, GBP\/USD fluctuated near 1.3430, affected by President Trump’s remarks at Davos.<\/p>\n
In the commodities market, gold reached a high near $4,900 per troy ounce after a sharp corrective phase. Meanwhile, in the cryptocurrency market, Bitcoin remained below $90,000, as demand from investors weakened.<\/p>\n
In the broader market, Monero’s price faced a 38% decline from the previous week. This occurred due to a weakening market structure during the American trading session. <\/p>\n
FXStreet encourages readers to conduct thorough research for investment decisions, given inherent risks. FXStreet provides information without warranties towards its accuracy or timeliness. They clarify no positions with stocks in the discussions and avoid giving personalised financial advice.<\/p>\n
With geopolitical tensions surrounding Greenland stirring up volatility, we are seeing a classic flight to safety. The coming weeks will likely be driven by headline risk, making options strategies that benefit from price swings, such as straddles on major indices, particularly attractive. Traders should be prepared for sharp, unpredictable market movements based on political statements.<\/p>\n
The US Dollar is strengthening amid the uncertainty, putting downward pressure on both the EUR\/USD and GBP\/USD pairs. The US Dollar Index (DXY) has climbed over 1% this week, a trend we expect to continue as long as the rhetoric from Davos remains heated. We see opportunities in buying put options on the Euro and Pound Sterling or selling futures contracts to hedge against further downside.<\/p>\n
Canada\u2019s economy is showing signs of cooling, with industrial product prices falling unexpectedly by 0.6% last month. This data point is a stark contrast to the stronger inflation we saw for most of 2025 and suggests the Bank of Canada may adopt a more dovish tone. This reinforces a bearish outlook on the Canadian dollar, making long USD\/CAD futures an appealing position.<\/p>\n
Gold has surged to a new all-time high near $4,900, acting as the primary safe-haven asset. This rally is reminiscent of the market reactions we saw during the global uncertainty of 2020, where gold posted gains of over 25% in a single year. We believe buying call options on gold is the most direct way to gain exposure to further upside while limiting risk.<\/p>\n
The rise in the Dow Jones shows that equity markets are breathing a sigh of relief that military action is off the table, but the situation remains fragile. The CBOE Volatility Index (VIX) is currently elevated near 24, indicating that options premiums are high and that the market anticipates continued turbulence. Using this elevated premium to our advantage by selling covered calls on existing stock positions could be a prudent way to generate income.<\/p>\n
Meanwhile, the crypto market is showing weakness, with Bitcoin failing to hold the $90,000 level and ETFs recording outflows. This signals that institutional demand is fading and that the speculative fervor is dying down. We would advise against looking for bargains here and instead consider protective puts on major crypto assets to guard against a deeper correction.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Canada’s IPPI drops, Trump highlights Greenland, currencies shift, gold surges, Bitcoin weakens, Monero falls sharply.<\/p>\n","protected":false},"author":62,"featured_media":16961,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-39767","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\/39767","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=39767"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/39767\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16961"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=39767"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=39767"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=39767"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}