The Consumer Price Index (CPI) in South Africa grew by 3.6% in December, matching expectations for that time period. This report comes from FXStreet, which outlines important changes in global currency and material prices. Gold has hit a new record high close to $4,900, driven by a global risk-averse sentiment.

Currency Values Overview

Many currency values are showing downward trends, such as EUR/USD. Meanwhile, USD/JPY is expected to stay within a specific trading range. The British pound (GBP) is under pressure due to concerns about inflation in the UK. Broker rankings for 2026 vary, revealing different strengths like low spreads and high leverage. Regions such as Mena and Latam are included in these evaluations. FXStreet reminds us that markets come with risks and uncertainties. It’s essential for readers to do their research before making investment decisions because all investment activities have risks and emotional impacts. The global risk-averse mood is pushing gold prices up toward $4,900, continuing the major rally that began in 2025. Central bank purchases started to increase in 2024, creating strong support for this price rise. Long-dated call options on gold futures could be a good way to take advantage of further gains while managing risk in this uncertain setting.

British Pound Challenges

In the currency markets, the British pound is struggling with high inflation. This mirrors the challenges faced by the Bank of England in 2024 and 2025, creating uncertainty about future actions. Implied volatility on sterling pairs is expected to rise, making options strategies like straddles on GBP/USD appealing to capitalize on expected price changes. New geopolitical tensions, particularly regarding “Greenland tariffs,” are adding risk for Europe. The euro is weakening toward 1.1700 against the dollar ahead of the upcoming speech at Davos. We can protect ourselves from further declines by buying puts on the EUR/USD as a hedge against rising trade disputes. In contrast, South Africa’s inflation has stabilized within the target at 3.6%. This stability makes the rand stand out compared to the volatility of larger currency pairs. It indicates a chance to sell volatility on USD/ZAR, expecting it to remain steadier than its G10 counterparts in the coming weeks. Overall market anxiety is growing, especially around significant political events like the Davos forum. The CBOE Volatility Index (VIX), which spiked during the trade conflicts of 2025, is crucial to monitor. We should consider buying VIX call options as a hedge against a potential market downturn triggered by political events. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now