The Philadelphia Fed Manufacturing Survey for January showed a score of 12.6, which is higher than the expected -2. This indicates that manufacturing in the region is doing better than anticipated. The US Dollar is getting stronger due to this positive news, impacting different currency pairs. The GBP/USD has fallen to around 1.3370, and the EUR/USD is edging down toward 1.1600 as the dollar continues to rise.

Gold and Cryptocurrency Update

Gold prices are holding steady above $4,600 per ounce. However, recent dollar strength has reduced some of its gains. Bitcoin and Ethereum are also experiencing a pause in their price increases, although there are still positive trends with ETF inflows. Investors are shifting their attention to Asia, moving away from a US-focused market that has a limited number of top stocks. Meanwhile, Ripple has obtained a preliminary license in Europe, but XRP is still struggling, showing a downward trend. We list various top brokers for 2026, catering to different trading needs like low spreads, high leverage, and regional preferences. Traders can find a detailed guide to help them choose brokers that suit their needs and locations.

Recent Economic Performance

The US economy has made a surprisingly strong start this year, with the Philadelphia Fed survey showing a score of 12.6, well above the expected -2. This indicates that manufacturing is growing, contrary to fears of contraction. As a result, the US Dollar is showing strong momentum against other currencies. This trend isn’t isolated; it follows a pattern we noticed in late 2025. US inflation has remained stubborn, with the Consumer Price Index sitting around 3.5% at the end of 2025, and the jobs report from December showed a surprising increase of over 200,000 jobs. This data may lead to a reevaluation of when the Federal Reserve will start reducing interest rates this year. For those trading derivatives, this suggests continued weakness for currency pairs like EUR/USD and GBP/USD. The Euro is moving toward the 1.1600 level, an important psychological point, and Sterling has broken support around 1.3400. Selling rallies in these pairs or using options to bet on potential declines towards recent lows seems to be a prudent approach. The strong dollar and rising Treasury yields are creating challenges for commodities. Gold is witnessing some profit-taking, stepping back from the $4,600 mark after its strong run in 2025. Caution is advised for those holding long positions in gold, as further economic strength in the US could increase downward pressure on the metal. The cryptocurrency market is also feeling these changes, with Bitcoin and Ethereum’s recent gains stalling. Although the influx of ETFs provided some support, renewed strength in the dollar is slowing down speculative assets. This signals a possible period of consolidation or a more significant pullback in the near future. Create your live VT Markets account and start trading now.

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