**Currency Fluctuations** The US 4-week bill auction yield went up from 3.595% to 3.63%. Various economic indicators were reported. Japan’s national CPI rose by 2.1% year-over-year in December. In New Zealand, CPI inflation climbed to 3.1% year-over-year in Q4, slightly above the expected 3.0%. Currency fluctuations were noted, with the NZD/USD pair rising above 0.5900. The GBP/JPY reached a weekly high as the pound strengthened, while EUR/USD aimed for 1.1800. Gold prices surged over $4,900 per troy ounce due to a weaker US Dollar. Ripple’s cryptocurrency token, XRP, is holding steady at $1.90, benefiting from ETF inflows, even as the market remains cautious. Chainlink (LINK) is experiencing volatility and is trading at $12.20 as retail demand decreases. There were significant geopolitical events, including a brief tension over NATO tariffs proposed by Donald Trump, which quickly eased.

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The article lists top brokers for 2026, highlighting those with low spreads, high leverage, and various account types. It emphasizes that no investment advice is given, and FXStreet is not responsible for any losses. Investors should perform thorough research and think about the risks associated with market activities. The rise in the 4-week US bill auction to 3.63% suggests the market is preparing for stronger short-term rates from the Federal Reserve. However, the US Dollar is paradoxically weakening against other major currencies. This indicates that traders are anticipating more aggressive policy tightening from foreign central banks, making the dollar less appealing. We see clear signs of persistent inflation abroad, with Japan’s CPI at 2.1% and New Zealand’s unexpectedly high at 3.1%. Reflecting on global inflation in 2023, central banks outside the US are now taking strong actions. This makes long positions on currencies like the New Zealand Dollar through futures or options an appealing strategy against the greenback. Gold’s rise toward $5,000 an ounce is noteworthy, driven by the dollar’s decline and ongoing inflation fears. This trend is more than just a response to short-lived geopolitical news, as central bank purchases in the last quarter of 2025 hit a multi-year high. Therefore, consider using call options on gold futures to maintain exposure while managing the risk of a sudden drop. Despite improved trade relations, underlying market volatility remains important. The CBOE Volatility Index (VIX) is around 18, lower than last week but still above the average for most of 2024. This environment favors option-selling strategies that benefit from time decay, like writing covered calls on stable, dividend-paying stocks. Create your live VT Markets account and start trading now.

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