The Producer Price Index in Sweden decreased from -1.4% to -2.7% in December. This marked a decline in production costs, which indicates changes in supply chain dynamics and price adjustments by producers.<\/p>\n
Gold prices remain near historic peaks due to safe-haven demand, driven by geopolitical uncertainties and a weaker US Dollar. The precious metal drew interest for seven consecutive days, maintaining a bullish trend despite fluctuations in financial markets.<\/p>\n
In the currency market, EUR\/USD trades below 1.1900 despite maintaining an upward bias over recent days. GBP\/USD encountered resistance near 1.3700 and retreated from four-month highs due to a stronger US Dollar.<\/p>\n
In other financial developments, Axie Infinity saw a 3% rise, adding to the 21% gains from the previous day. The gaming token’s demand surged following the introduction of a new app token, bAXS, which is set to replace the AXS token throughout the ecosystem.<\/p>\n
Sweden\u2019s producer prices falling to -2.7% suggests deflationary pressure is building. This will likely force the Riksbank to consider cutting rates sooner than its peers, especially since we saw a similar dynamic in 2024 which led to rate cuts. We should consider using options to position for a weaker Krona in the coming weeks.<\/p>\n
With gold testing all-time highs above $5,100, the market is clearly pricing in geopolitical risk from trade tensions and a weak US dollar. This is a classic setup for higher volatility, similar to what we experienced during the trade disputes of 2025. With the CBOE Gold Volatility Index (GVZ) currently elevated near 20, traders could use straddles on gold futures to play an expected price swing around upcoming news.<\/p>\n
The upcoming Federal Reserve decision is the main event, with the US Dollar already showing broad weakness. While the CME FedWatch Tool indicates a 92% probability of rates being held steady, the forward guidance will drive the market. Look at short-dated options on EUR\/USD to trade the potential volatility, as implied volatility has historically spiked around these events.<\/p>\n
Sterling is struggling to break past the 1.3700 level against the dollar, a significant technical resistance. Given the overbought conditions mentioned, this presents an opportunity for bearish derivative plays. A simple put option or a bear put spread on GBP\/USD could offer a cost-effective way to profit if the pair rejects this level post-Fed announcement.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Sweden\u2019s producer prices decline; gold remains strong; Euro, Pound fall; Axie Infinity rallies on token news.<\/p>\n","protected":false},"author":62,"featured_media":16978,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40223","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\/40223","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=40223"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/40223\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16978"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=40223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=40223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=40223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}