The USD is expected to remain range-bound, influenced by Federal Reserve activities. The GBP\/JPY remained near weekly highs as a weaker yen countered softer Tokyo inflation figures.<\/p>\n
The EUR\/USD continued its downtrend, approaching the 1.1920\u20131.1910 range following US producer price index data and Fed news. A rebound in the US dollar influenced GBP\/USD to fall to three-day lows of around 1.3720.<\/p>\n
Gold, affected by broad profit-taking, slipped under the $5,000 mark per ounce. Stellar and other cryptocurrencies experienced downturns, with Stellar hitting a three-month low, Bitcoin nearing November lows, and Ethereum dropping below $2,800.<\/p>\n
Microsoft’s market decline after earnings erased $400 billion, marking a substantial financial impact. Brokers’ 2026 rankings covered various trading instruments and customer needs, including low spreads and high leverage options. <\/p>\n
FXStreet advises conducting independent research before making investment choices, as trading involves substantial risks.<\/p>\n
The appointment of Kevin Warsh as the new Fed chair is a major shift from the Powell era, signaling a more hawkish policy ahead. We need to position for a stronger US dollar and higher interest rate expectations in the coming weeks. This is not a minor event; it is the primary driver of all major asset classes right now.<\/p>\n
With the US dollar rebounding sharply, we should consider strategies that benefit from its continued strength. After a period of relative calm in the second half of 2025, when the US Dollar Index (DXY) mostly traded in a range, this breakout suggests momentum is just beginning. Call options on the DXY or put options on currency pairs like EUR\/USD and AUD\/USD are logical plays here.<\/p>\n
Gold\u2019s collapse below $5,000 is a direct result of the stronger dollar and the market anticipating higher real yields, which increases the opportunity cost of holding non-yielding bullion. This sharp profit-taking suggests the record highs are behind us for now. We should look to add to short positions or buy put options on gold futures, as this trend has room to run.<\/p>\n
The massive sell-off in Microsoft is a clear warning that growth stocks are vulnerable to rising rates. We saw a similar dynamic during the rate hiking cycle of 2022, and we should expect continued volatility in the technology sector. Buying puts on the Nasdaq 100 or purchasing call options on the VIX index could be an effective hedge against further downside.<\/p>\n
Cryptocurrencies are trading as high-risk assets and are being sold off aggressively in this risk-off environment. The negative funding rates noted in derivatives markets confirm the deeply bearish sentiment among traders. We anticipate more pressure on assets like Bitcoin and Ethereum as investors flee to the relative safety of the dollar.<\/p>\n
The surprise beat in Mexico\u2019s GDP growth might provide the peso with some relative resilience compared to other currencies. While the dollar’s strength will be the dominant factor, the USD\/MXN pair may not rise as quickly as others like AUD\/USD. We should prioritize shorting currencies with weaker domestic fundamentals against the dollar.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Mexico\u2019s GDP beats forecasts; US dollar rebound pressures gold, cryptocurrencies dip, Microsoft loses $400B post-earnings.<\/p>\n","protected":false},"author":62,"featured_media":17026,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40548","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\/40548","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=40548"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/40548\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/17026"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=40548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=40548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=40548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}