In December, Switzerland’s retail sales rose by 2.9% compared to the previous year, exceeding the expected 2.5%. This shows that the retail sector is performing better than anticipated. In the currency markets, EUR/USD is currently weak, hovering around 1.1850. This weakness comes from a strong US Dollar, especially after news about Kevin Warsh’s potential nomination as Fed Chair. GBP/USD has slipped below 1.3700, fueled by uncertainty regarding Warsh’s leadership.

Gold and Cryptocurrency Market Trends

In commodities, gold prices have dropped to monthly lows around $4,400. This decline is due to profit-taking and the strengthening US Dollar. Meanwhile, Cardano’s price has dipped below $0.28, part of a broader decline in the cryptocurrency market, with Bitcoin falling below $75,000. There are discussions about the Best Brokers in 2026, focusing on top brokers for Forex and gold trading, along with their advantages and disadvantages across different regions. The content contains forward-looking statements that involve risks and uncertainties. While it serves as informative, accuracy isn’t guaranteed. FXStreet is not responsible for any investment choices made based on this information. The market is clearly reacting to the nomination of a new, more hawkish Fed Chair. The US Dollar Index has risen by 1.5% in the past five trading days, reaching its highest level since November 2025. This strength makes buying call options on the dollar or selling futures on weaker currencies like the Euro and Pound an appealing strategy for the upcoming weeks.

Profit Taking in Gold Market

Gold is experiencing predictable profit-taking, pulling back from its recent high above $4,550 an ounce. This mirrors the pattern seen during the 2013 “Taper Tantrum,” where expectations of tighter monetary policy led to declines in precious metals. Traders might want to consider buying put options on gold futures, anticipating further drops as the market adjusts to higher US interest rates. Pay attention to the strong data emerging from Switzerland, where retail sales have exceeded expectations. This fundamental strength, along with a record-low unemployment rate of just 2.1%, makes the Swiss Franc robust. There’s an opportunity to short the EUR/CHF pair, taking advantage of the strong Franc compared to a Euro that’s struggling despite its own positive news. All eyes are on the upcoming US ISM Manufacturing PMI data later today. A strong reading would support the hawkish Fed narrative and could spark a significant market movement, while a weaker outcome might cause a rapid reversal. With currency market volatility up 20% in the last week, using straddles or strangles on major pairs like EUR/USD can help profit from big movements in either direction. Create your live VT Markets account and start trading now.

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