In December, Colombia’s Consumer Price Index (CPI) increased by 0.27%, which is lower than the expected 0.38%. This indicates a shift in inflation trends in the country. This information is for informational purposes only and does not serve as investment advice. FXStreet emphasizes the importance of conducting thorough research before making any financial decisions. All markets come with risks, including the potential total loss of investment capital. Various brokers are noted for their specialty in certain trading areas for 2026.

Mixed Currency Performance

In the currency market, several pairs are showing mixed results. For example, USD/CHF is nearing 0.8000, while EUR/JPY has surpassed 183.00. Meanwhile, XRP has experienced its third consecutive day of losses due to higher volatility, after reaching a peak of $2.41. The economic outlook for 2026 feels cautious, as we are still seeing effects from the market changes in 2025. Expectations for US Nonfarm Payrolls suggest possible job gains of 60,000 in December, slightly down from 64,000 in November. This information could impact market dynamics and trading strategies. Colombia’s lower-than-expected inflation in December signals something important for emerging markets. The central bank, which maintained a high policy rate of 11.25% during the latter half of 2025 to combat inflation, might now consider reducing rates sooner than previously thought. This could lead derivative traders to think about positions that profit from a weaker Colombian Peso in early 2026.

Global Inflation Trends

This situation isn’t unique; it reflects a recent shortfall in China’s inflation data. A broader trend shows that global inflationary pressures, which kept the average CPI around 4.5% for much of last year, are starting to ease. Thus, it’s wise to be cautious about long positions on inflation-sensitive assets and to consider strategies betting on lower interest rate expectations. Everyone is now watching the upcoming US Nonfarm Payrolls data, which could be a key market driver. If the job numbers come in below the 60,000 forecast, it could strengthen the narrative of falling inflation and significantly weaken the US Dollar Index, currently near 99.00. In anticipation, we are exploring put options on the dollar or call options on major pairs like EUR/USD. Gold prices are holding steady near $4,500 an ounce, indicating that the market is still aware of the major economic changes from 2025. Typically, a weakening US labor market combined with easing inflation is bullish for gold, as observed during the economic policy shifts of the late 2000s. A weak payrolls report could trigger gold to reach new highs, making call options on gold an appealing hedge. Create your live VT Markets account and start trading now.

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