France’s HCOB Composite PMI for January was 48.6, which is below the expected 50.1. This number shows that economic activity is shrinking since any score below 50 indicates contraction. Currency pairs reacted differently to the economic news and rumors. The GBP/USD rose above 1.3500 due to strong retail sales and PMI data from the UK. In contrast, USD/JPY hovered around 158.00 amid speculation of market intervention, while EUR/USD stayed below 1.1750 as traders awaited US PMI data. Commodity prices saw minor changes, with silver remaining under the $100 mark. In the cryptocurrency market, Bitcoin showed some signs of recovery, but Ethereum and Ripple continued to decline. Gold pulled back from its highest levels but stayed steady above $4,900. The latest insights on the best brokers for 2026 included a variety of regions and markets. The review looked at forex brokers, those with low spreads, and brokers focused on CFD trading and high leverage. It also featured brokers offering Islamic and swap-free accounts, as well as those using the popular MT4 platform. The analysis specifically targeted brokers in regions like MENA, Latam, and Indonesia. The recent French Composite PMI data for January fell significantly short of expectations, indicating an economic contraction instead of the anticipated growth. This disappointing result from the Eurozone’s second-largest economy raises alarms about potential weaknesses across the region. It seems the optimism from late last year may have been unfounded. This data puts downward pressure on the EUR/USD pair, making bearish positions more appealing. Considering buying put options on EUR/USD as this weak PMI suggests the European Central Bank might need to take action. With Eurozone inflation cooling to 2.5% in the last readings for 2025, the argument for keeping interest rates high is weakening. France’s economic outlook sharply contrasts with the recent strength in the UK, where the data has been more encouraging. This widening gap makes shorting the EUR/GBP pair—through futures or options—a promising strategy for the upcoming weeks. The unexpected 1.2% rise in UK retail sales from December 2025 highlights this trend, which today’s data further confirms. We should expect increased volatility in Euro-related pairs as the market absorbs this news. This PMI miss is a key event, reminiscent of the downturn in sentiment we saw in the third quarter of 2025, when several weak data reports caused the Euro to slide sharply against the dollar within a month.

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