Singapore’s foreign reserves rose to $409.3 billion in December, up from $400 billion. This increase reflects the country’s strong financial stability and reserves. The ADP Employment Change Report for December is set to show that the US economy is expected to add 45,000 jobs. This comes after a job loss of 32,000 in November 2025.

Concern Over Venezuela Developments

Recent events in Venezuela, particularly the removal of Nicolás Maduro, are raising concerns. However, these changes are not expected to affect market or economic forecasts. Aave (AAVE) is currently trading at around $172, close to the top of a downward trend pattern. If it breaks above this pattern, it could indicate a positive trend for investors. Singapore’s increase in foreign reserves to $409.3 billion suggests a strong and stable Singapore Dollar. In 2021, a similar rise in reserves led to a stronger SGD against the US dollar in the following months. We suggest considering buying SGD/USD call options with March or April expiration dates to take advantage of this potential growth. We are closely watching the upcoming US ADP job report, as the market anticipates a significant shift from job losses to job gains. If the report falls short of the expected 45,000 jobs, it could weaken the dollar and lift equity markets. Traders might think about purchasing short-dated VIX call options to profit from the volatility that would follow.

Wildcards in Oil Markets

The uncertainty in Venezuela is a significant factor for crude oil prices, even though it hasn’t impacted our overall economic forecasts yet. Political turmoil in OPEC countries often leads to fears about supply, causing crude prices to spike, as seen in past events. We see an opportunity to buy out-of-the-money call options on WTI crude futures at a low cost to prepare for a potential rise in oil prices. In the cryptocurrency market, Aave is testing a key resistance level at $172. If it successfully breaks above this downward trend, it could lead to a strong rally, similar to what happened with Bitcoin in early 2023, which saw a sustained increase of over 50% in the following months. We would look to enter long positions using AAVE perpetual futures if the price closes decisively above this trendline on a daily chart. Create your live VT Markets account and start trading now.

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