The United Kingdom’s CFTC GBP NC net positions are now at £-30.5K, down from £-332K before. This change shows a shift in how investors feel about the British pound. The EUR/USD closed the week around 1.1640, down 0.7%. The GBP/USD has dropped below 1.3400 due to the strong US dollar. The AUD/USD is also down after the dollar gained strength and Australian inflation data disappointed.

Gold And Cryptocurrency Market Update

Gold prices have jumped above £4,500, expecting a 4% weekly gain after the US Nonfarm Payroll data was released. In the cryptocurrency market, Bitcoin is holding steady at $90,000, but it’s below the 50-day EMA. Ethereum stays above $3,000, even with ETF outflows, while XRP is struggling due to decreased retail demand. Looking forward, the US CPI report could influence the dollar, and geopolitical factors may also affect market movements. By 2026, several brokers with specific focuses will be available for traders, presenting opportunities based on individual trading strategies. FXStreet offers market insights but recommends thorough research before making any investment decisions. The information provided is solely for informational purposes and does not suggest buying or selling any financial instruments. There has been a significant change in sentiment toward the British Pound. Investment data shows net short positions have dropped from over £332K to just £30.5K, indicating a potential squeeze on short positions. This makes the test of the 1.3380 level on GBP/USD, the 200-day moving average, a crucial moment for the currency pair.

The US Dollar And CPI Report Impact

The US Dollar’s strength is about to face a test with the upcoming Consumer Price Index (CPI) report this Tuesday. After a 3.1% year-over-year inflation rate in December 2025, analysts expect a drop to 2.9%. This could quickly unwind long-dollar trades. The Federal Reserve’s cautious stance on hiring adds uncertainty regarding the dollar’s continued strength. In light of this, purchasing out-of-the-money GBP/USD call options that expire in two weeks could be a low-cost way to prepare for a possible uptick. The implied volatility for these options has increased to 9.5%, showing the market expects a strong move after the CPI data. This strategy could profit from a weaker dollar and the unwinding of remaining short positions on the pound. The market is clearly anxious, as seen by the rise in gold prices above $4,500, despite the dollar holding firm. This movement, similar to the risk-off rally in Q3 2025, is due to sustained demand, with central bank gold purchases hitting a record last quarter. Look for chances in gold futures or options as a hedge against ongoing geopolitical uncertainty. This anxiety is also reflected in cryptocurrencies, where institutional demand is declining, and Bitcoin is struggling below its 50-day moving average around $90,000. The divide between gold’s rising value and crypto’s declining performance indicates traders prefer traditional safe havens over digital options. Caution is advisable in this market until we see a significant return of institutional investment. Create your live VT Markets account and start trading now.

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