Argentina’s industrial output dropped by 8.7% year-on-year in November, worsening from a 2.9% decline in the prior month. This shows a continuing downturn in industrial activity. In the foreign exchange market, the People’s Bank of China set the USD/CNY reference rate at 7.0128, a small change from the previous rate of 7.0197. This adjustment occurs as the bank reviews currency performance and economic data.

Commodities Market Update

In the commodities market, gold prices are around $4,455, affected by rising yields and a recovering US dollar. Traders are taking a cautious approach while waiting for important US employment data that could sway future trading decisions. Cryptocurrencies have experienced fluctuations, with Ripple (XRP) declining for the third straight day. This drop follows its peak of $2.41 on Tuesday, the highest point since mid-November, as investors took profits amid a volatile market. With the US Nonfarm Payrolls report scheduled for today, January 9th, we recommend a cautious approach. Analysts expect around 170,000 jobs added in December, a number that will significantly impact the Federal Reserve’s timeline for rate cuts. The result of this report may set the market’s direction for the upcoming weeks. This expectation is already boosting the US dollar, causing pairs like EUR/USD to fall toward the 1.1640 level. We see this as a chance to consider put options on the Euro or British Pound, speculating on continued dollar strength if the jobs data exceeds forecasts. The market is anticipating major movement, and derivatives can help manage that risk.

Volatility and Emerging Market Concerns

Nervousness is increasing, with the VIX volatility index rising to 16.5 this week from around 13 a few weeks back. The recent profit-taking in speculative assets like XRP, which fell after reaching $2.41, confirms this cautious mood. Traders might want to consider strategies like straddles on major indices to capitalize on potential volatility spikes following the jobs report. Gold remains steady near $4,455, caught between a strong dollar and ongoing geopolitical concerns from 2025. A strong jobs report could push yields higher and gold lower in the short term, making short-term call options risky right now. However, any significant dip could present a buying opportunity due to persistent global uncertainty. On a concerning note, Argentina’s industrial output has fallen sharply by 8.7%. This is a severe drop, reminiscent of their 2018 crisis, and adds to the hyperinflation challenges experienced in 2025. This situation leads us to consider bearish positions on assets linked to Latin American economies, as the risk of contagion may be underestimated. Create your live VT Markets account and start trading now.

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