China’s trade balance for December reached $114.1 billion, surpassing the expected $113.6 billion. This comes during a time when various market movements and economic indicators are being closely observed worldwide. Gold prices increased to just over $4,620 per troy ounce, approaching the record high of $4,634.64. This rise is driven by higher demand for safe-haven assets due to anticipated rate cuts by the Federal Reserve. At the same time, meme coins like Dogecoin, Shiba Inu, and Pepe saw increases between 7% and 14%, indicating a possible upward trend.

Currency Market Movements

In the currency markets, the GBP/USD pair fell to about 1.3425, influenced by renewed demand for the US Dollar ahead of important US economic data. Similarly, the USD/JPY and USD/CHF pairs were affected by the yen’s performance and inflation data. Recommendations for currency trading brokers for pairings like EUR/USD and others in 2026 have emerged. These insights highlight features such as low spreads, leverage, and regional suitability, reflecting the varied preferences of currency traders. Articles on the FXStreet platform remind readers about the risks and uncertainties in financial markets. They encourage individuals to do thorough research before making investment decisions, emphasizing the risks involved in open markets. Political pressure on the Federal Reserve, including grand jury subpoenas, has created a level of uncertainty not seen in years. This situation signals the likelihood of higher market volatility, with VIX futures anticipating significant price swings. Traders should consider strategies that benefit from this, such as long straddles on major equity indices.

Strategies for Gold and US Dollar

With gold prices hitting new highs over $4,600, it is currently the main safe-haven asset in the market. The rally is supported by political uncertainty and increasing expectations of Fed rate cuts, generating strong momentum. This suggests that buying call options on gold futures or setting up bull call spreads could be effective strategies for capturing potential upside. The US Dollar is gaining strength against other major currencies, with the USD/JPY pair nearing the significant psychological level of 160.00. This movement is primarily driven by interest rate differences, a trend that also influenced the market in 2024. The upcoming US Retail Sales and Producer Price Index (PPI) data will be crucial; any surprises could either boost this trend or cause a sharp reversal. Although safe-haven assets are in demand, China’s trade balance showed a much stronger-than-expected $114.1 billion for December 2025. This robust export data, much higher than the figures seen throughout much of 2024, indicates that global demand is holding up better than expected. This could support commodity currencies and complicate a purely risk-off outlook. Create your live VT Markets account and start trading now.

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