**Gold Prices Remain Steady Despite Dollar Weakness** Trade tensions are rising after President Trump made claims against South Korea. Cryptocurrency Ripple is also under pressure, trading around $1.88. Best brokers for forex and other markets in 2026 are highlighted, providing insights on costs and exposure. There are inherent market risks, so thorough research is essential before making transactions. **Market Trends and Currency Strategies** The weakness of the US Dollar, which began in late 2025, has continued into the new year due to ongoing tariff uncertainty. Recently, the US Non-Farm Payrolls report showed job growth slowed to just 115,000 in early January, adding to the bearish sentiment around the dollar. Traders might consider put options on the Dollar Index (DXY) to protect against further declines ahead of the upcoming Federal Reserve meeting. This environment is pushing pairs like EUR/USD and GBP/USD higher. The Euro is testing the 1.2000 level for the first time since mid-2021. The market is pricing in a continued difference between a dovish Fed and a more stable European Central Bank. We recommend buying call options on these pairs for potential upside while managing risk if the dollar suddenly rebounds. Mexico’s trade balance worsened in December 2025, with a dip to $-0.86 billion signaling possible challenges for the Peso. This situation recalls early 2022 when emerging market currencies faced difficulties amid global economic uncertainty. While the weak dollar complicates a straightforward long USD/MXN trade, shorting the Peso against stronger currencies like the Australian Dollar may be a smart strategy. Gold continues to benefit from a weak dollar and geopolitical tensions, staying above the $5,000 per ounce mark. Central bank purchases are increasing, with the World Gold Council reporting a 12% rise in official sector buying in the fourth quarter of 2025 compared to the previous year. We see continued value in long-dated futures contracts to take advantage of this trend. The Canadian Dollar’s strength has pushed USD/CAD to lows not seen since last year. This is largely supported by energy prices, with WTI crude rising over 8% since the start of 2026, trading above $92 per barrel. A sustained drop below the key support level could lead to more technical selling in this pair. The Australian Dollar is also enjoying a strong performance, having reached a three-year peak in late 2025. Australia’s latest CPI data shows inflation steady at 3.4%, above the central bank’s target, suggesting the RBA will be among the last major banks to cut rates. This fundamental situation supports strategies using call options on AUD/USD. **Create your live VT Markets account and start trading now. **

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