Ireland’s consumer confidence rose to 61.2 in December, a slight increase from 61 in November. This small rise indicates a bit of cautious optimism among consumers about the economy. In other news, the EUR/USD remained steady around 1.1650 ahead of the US Nonfarm Payrolls report. December’s job growth was expected to be 60,000, down from November’s 64,000, which could impact the Federal Reserve’s decisions.

Currency Market Overview

The GBP/USD pair stayed around 1.3430, with the Relative Strength Index at a neutral 51.9. Although trading was quiet, signs suggest a possible pullback if the RSI goes below 50. Gold stayed below a key resistance just under $4,500, with its future movements depending on the US Nonfarm Payrolls data. Meanwhile, Bitcoin, Ethereum, and Ripple held onto their critical support levels, raising hopes for a short-term recovery. Ripple faced its third consecutive decline, trading lower due to increased volatility in the cryptocurrency market. After reaching a high of $2.41, it saw significant profit-taking. Looking ahead to 2026, the outlook appears brighter after the major changes in 2025, a year many predicted would bring economic challenges. The recent small increase in Irish consumer confidence to 61.2 reflects a stable sentiment across Europe. However, the VIX, which measures market fear, remains just below 20, indicating the market is wary of possible sudden disruptions.

Market Predictions

Attention is focused on the upcoming US Nonfarm Payrolls report, which traders are eagerly awaiting. The market expects a modest gain of 60,000 jobs, confirming the cooling trend seen in late 2025. Last year’s average monthly increase was closer to 110,000, so a disappointing number could heighten speculation about a Fed rate cut and weaken the dollar. With EUR/USD near 1.1650 and GBP/USD under 1.3450, low implied volatility is expected ahead of the jobs report. This creates an opportunity for strategies like straddles or strangles, which bet on significant price movements in either direction once the numbers come out. A weak NFP report could push EUR/USD through its recent resistance, while a surprisingly strong report could support the Fed’s cautious approach. Gold is a key hedge, facing resistance just under $4,500 in a market still concerned about ongoing inflation, which recently rose to 3.8% in the latest CPI reading. The upcoming Supreme Court decision on presidential tariff powers also adds political uncertainty, supporting the case for long positions. A weaker dollar following the NFP report could trigger a breakout above this important psychological level. This holding pattern is apparent across various asset classes, with major cryptocurrencies like Bitcoin finding support after a mid-week pullback. In the coming weeks, focusing on volatility rather than direction is essential. Selling options for premium income may seem appealing in this quiet market, but the number of upcoming events suggests that buying volatility at these low levels might offer a better risk-reward scenario. Create your live VT Markets account and start trading now.

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