Canada’s raw material price index for December surprised analysts, showing a 0.5% increase instead of the expected decrease of -0.5%. This change indicates how raw material costs can vary due to market conditions. The market is showing different trends, as the Dow Jones Industrial Average has risen. This increase is linked to geopolitical talks, particularly those regarding Greenland.

Currency Market Movements

In the currency market, the EUR/USD pair dropped to about 1.1700 as the US Dollar made a slight recovery. Similarly, the GBP/USD fluctuated, with movements aiming towards the 1.3430 range. Stocks and commodities are responding to outside influences, with gold prices showing ups and downs but staying high near $4,900 per troy ounce. In the world of cryptocurrency, Bitcoin remains below $90,000, struggling due to decreasing demand. President Trump’s speech at the World Economic Forum in Davos affected various markets. He discussed important issues regarding Europe, Greenland, and overall economic strategies. Monero (XMR) is down 38% from its recent peak and continues to decline in a weakening market. The overall market mood is cautious in light of these diverse challenges.

Canadian Raw Material Prices

We just experienced an unexpected rise in Canadian raw material prices, jumping to 0.5% instead of dropping. This continues the inflation trend seen throughout much of 2025, suggesting the Bank of Canada may need to keep a hawkish stance. This situation could make call options on the loonie appealing against currencies with a gentler outlook. Geopolitical tensions over Greenland are creating major uncertainties in the market, prompting investors to seek safer assets. Gold has surged to a new high around $4,900, signaling a strong risk-off sentiment. Long call options on gold could be a smart move to take advantage of this trend, as it mirrors behavior during past risk events. The market is reacting quickly to political news, with currency pairs like GBP/USD swinging dramatically based on headlines alone. The CBOE Volatility Index (VIX), which measures market anxiety, has jumped 15% this week to 18.5, although it has been known to soar past 40 during uncertain times. Buying call options on the VIX might offer a solid hedge against the rising chaos. We can see signs of weakness in the cryptocurrency market as interest fades among both retail and institutional investors. Recent outflows from US-listed spot ETFs, which had over $15 billion in net inflows during 2025, indicate that momentum is shifting. This might be a good opportunity to consider protective put options on Bitcoin and Ethereum futures. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now