India’s HSBC Services PMI dropped to 58 in December, down from 59.1 in November. This indicates a slight slowdown in the growth of the country’s services sector. EUR/USD is expected to trade between 1.1695 and 1.1750. At the same time, Dow Jones futures fell as investors took profits amid geopolitical uncertainty.

Market Influences

Oil prices have been unstable, affected by the arrest of Maduro. In contrast, the gold market remained strong, hovering near a one-week high due to geopolitical tensions and speculation about possible Federal Reserve rate cuts. Solana saw notable growth, rising above $137 thanks to increased interest in spot ETFs. The asset had positive inflows exceeding $16 million on Monday, the highest recorded since mid-December. Looking ahead, several brokers for 2026 trading are being highlighted for their low spreads and high leverage. FXStreet offers a disclaimer, noting that investing in markets comes with various risks and uncertainties. After the tumultuous market activity in 2025, the new year is showing that volatility is likely to persist. The VIX index, which measures market fear, averaged over 25 in the last quarter of last year, well above its historical average. Derivative traders should consider strategies that benefit from price fluctuations, such as long straddles on major indices.

Safe Haven Assets

Geopolitical tensions are bolstering safe-haven assets, especially with rising concerns from Venezuela to the Middle East. As gold approaches $4,465, buying call options allows investors to take advantage of further price increases while clearly outlining their maximum risk. There has been a steady increase in net long positions in gold futures, indicating strong backing from institutional investors. The US Dollar remains weak, a trend that intensified in late 2025 when the Dollar Index dropped more than 3% in just one quarter. Fed funds futures currently suggest a greater than 70% chance of a rate cut by the end of March, which could exert more pressure on the Dollar. In this environment, buying futures or call options on pairs like EUR/USD and GBP/USD might be an attractive strategy. We are also noticing early signs of slowing growth in India, with the latest services PMI at 58. While this is still a solid number, it represents a significant decline from the rapid growth seen in 2025. This may slow the appreciation of the Indian Rupee, prompting caution for those holding aggressive short positions in the USD/INR pair. A key event coming up is the Supreme Court ruling on presidential tariff powers. The market overwhelmingly expects these powers to be overturned, which would likely lift equities. Traders might consider using inexpensive, out-of-the-money put options as a low-cost hedge against the small but impactful risk of an unexpected ruling. Create your live VT Markets account and start trading now.

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