Canada’s Ivey Purchasing Managers Index (PMI) stood at 51.9 in December, surpassing the anticipated 49.5. A reading above 50 signals growth in the sector, indicating its expansion. In market updates, the US Dollar remains steady amid mixed data from the US. This stability affects currencies like the Canadian Dollar due to declining oil prices. Ripple currently trades at $2.22, as concerns in the cryptocurrency market undo earlier gains from this year.

Precious Metal Market

In the precious metal market, gold is priced at $4,450 per troy ounce, showing a drop influenced by strong US economic data that reduces its appeal as a safe investment. The GBP/USD pair is struggling, hitting daily lows around 1.3470, due to the strengthening US Dollar. The EUR/USD continues its downward trend, with the dollar gaining slightly ahead of important US economic announcements. Despite this, gold’s price decrease is limited by falling US Treasury yields, despite the stronger dollar’s effect. Looking ahead to 2026, analysts anticipate relative stability without the shocks seen in 2025. Brokers recommend various financial products for traders seeking competitive options in forex, commodities, and CFDs.

Impact of Falling Oil Prices

The better-than-expected Canadian PMI indicates underlying strength in the Canadian economy. However, the Canadian dollar is currently impacted by dropping oil prices. This contrast between robust domestic data and weak commodity prices creates a challenging situation. This may lead to potential trouble for the currency in the coming weeks. In 2025, we often observed that strong domestic data wasn’t enough to lift the Canadian dollar when oil prices fell. Traders might consider using options strategies on USD/CAD to protect against these opposing pressures. Meanwhile, the main market driver is still the United States, with a strengthening US dollar affecting other major currencies. The US Non-Farm Payrolls (NFP) report due this Friday is the key event to watch. A stronger-than-expected NFP report last quarter triggered a significant dollar rally. With recent US data being solid, another strong jobs number could further enhance the dollar’s momentum. Current expectations for job growth are around 180,000. Traders dealing in derivatives should brace for increased volatility around the NFP release, as a noteworthy surprise will likely influence the market. Gold is in a delicate position, having retreated from the $4,500 mark. The strong US dollar makes gold pricier for foreign purchasers, contributing to its decline. However, dropping US Treasury yields, with the 10-year yield falling below 3.8% last week, offer some support by reducing the opportunity cost of holding non-yielding assets. This balance suggests that gold may stay stable for a while. With support near $4,450 and resistance at $4,500, derivative strategies like iron condors could become appealing. This strategy would benefit if gold’s price remains steady without breaking out in either direction over the next few weeks. Create your live VT Markets account and start trading now.

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