In September, housing starts in the United States reached 1.306 million, a small drop from August’s 1.307 million. This change occurs alongside various market activities, such as fluctuations in currency values and shifts in consumer confidence. The USD/CAD exchange rate has increased, supported by a strong US Dollar driven by solid labor data, while the Canadian Dollar faces challenges from oil price changes. At the same time, the USD/JPY remains strong, staying close to yearly highs, as the market watches for potential Federal Reserve interest rate cuts.

Cryptocurrency Market Overview

Gold is trading at about $4,500 per troy ounce, near its yearly highs, as investors seek safety in a volatile market, even with a robust US Dollar and rising Treasury yields. However, cryptocurrencies like Bitcoin and Ethereum are struggling with lower demand. Bitcoin is currently trading below its 50-day EMA, and Ethereum is facing outflows from ETFs. Global events, including US CPI data and geopolitical tensions, are likely to influence the US Dollar in the upcoming week. There’s also a focus on XRP, which is seeing a drop in demand despite a strong start to 2026. The article wraps up with a list of leading brokers for 2026, highlighting their trading advantages and regional focuses. Reflecting on late 2025, the market adjusted its views on Federal Reserve policies following a strong Nonfarm Payrolls report. This shift away from anticipated rate cuts in early 2026 continues to boost the dollar’s strength today. The Dollar Index (DXY) recently reached a multi-month high of 105.50, making it tough to bet against the dollar.

Inflation and Market Reactions

Attention is now on next Tuesday’s Consumer Price Index (CPI) report for clearer guidance on inflation. December’s CPI showed core inflation sticking at 3.9%, pressuring the Fed to maintain higher rates for an extended period. This uncertainty is why the VIX remains elevated, fluctuating above 18, making it a prime opportunity for traders to use options strategies, like strangles, on major currency pairs. The housing market continues to be a crucial indicator. The slight decline in housing starts to 1.306 million in September 2025 appears to be part of a wider trend toward stabilization. Recent S&P Case-Shiller Home Price Index data revealed year-over-year growth slowing to just 4.8%, indicating that high mortgage rates are limiting significant increases. Therefore, anyone considering derivatives linked to homebuilder stocks or real estate ETFs should proceed with caution. Last month, the Pound fell below significant technical levels like the 200-day moving average, and this weakness is expected to continue until the Bank of England adopts a more aggressive approach. Despite the strong dollar, gold’s stability near $4,500 an ounce highlights ongoing geopolitical concerns that should not be overlooked. Traders might explore using gold options as a safeguard against sudden changes in market conditions in the weeks ahead. Create your live VT Markets account and start trading now.

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