In October, the number of building permits issued in the United States was higher than expected. The total reached 1.412 million, exceeding the forecast of 1.35 million. The US dollar is performing well against both the Canadian dollar and the Japanese yen. However, the pound sterling has fallen below 1.3450 due to shifts in market expectations regarding Federal Reserve rate changes.

Impact On the Euro

The US nonfarm payroll data affected the euro, pushing the EUR/USD down to around 1.1620. The GBP/USD also dropped below 1.3400, testing its 200-day moving average. Gold prices continue to rise, approaching annual highs of $4,500 per troy ounce. In the cryptocurrency market, Bitcoin and Ethereum are struggling due to lower demand, while XRP has experienced some inflows. In the coming week, economic events may affect market trends. The upcoming US Consumer Price Index (CPI) report could influence geopolitical factors and market activities. XRP is under pressure due to falling retail demand, impacting its price stability. Additionally, futures Open Interest for XRP has decreased to $4.15 billion, indicating uncertainty.

Market Outlook

Looking ahead to 2026, brokers are being chosen based on various trading criteria, including Forex trading, trading costs, and their suitability for different markets and platforms. The mixed jobs report from December 2025 has changed market views, delaying expectations for a Federal Reserve rate cut. This trend is boosting the US dollar and is likely to dominate in the coming days. We should prepare for continued dollar strength as next week’s crucial CPI report approaches. This situation resembles early 2024, when a strong jobs report for December 2023 led traders to reduce their bets on a March rate cut. The current market shift follows this historical trend closely. The positive building permits data from last October, showing 1.412 million permits, also supports the view that the economy is too strong for the Fed to ease policies quickly. For currency traders, this suggests looking for opportunities to profit from a stronger dollar. We are seeing significant downward pressure on pairs like EUR/USD, targeting 1.1600, and GBP/USD as it drops below 1.3400. Buying puts on these currencies could be an effective strategy, especially with the upcoming CPI data likely to increase volatility. Gold is behaving differently, rising toward $4,500 per ounce despite the strong dollar. This suggests that traders are buying gold as protection against geopolitical risks, possibly related to an upcoming Supreme Court decision on tariffs. Options strategies like straddles can help trade the expected volatility in gold without guessing a specific direction. The weakness in the crypto market is likely to persist as long as the dollar remains strong and risk-averse sentiment continues. Bitcoin is struggling to maintain its value above $90,000, and with weak institutional demand, there’s a real risk of further decline. Traders might consider short-dated puts on major cryptocurrencies or related stocks to protect against potential losses. Create your live VT Markets account and start trading now.

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