US continuing jobless claims rose to 1.923 million on December 12, up from 1.897 million before. This increase highlights ongoing issues in the job market. Economic data shows mixed results in other sectors. GBP/USD and EUR/USD steady at around 1.3500 and 1.1800, respectively, due to quiet holiday trading.

Gold And Cryptocurrency Trends

Gold prices have fallen from record highs and are now just below $4,500. Bitcoin has dropped under $87,000 as ETF outflows reached $188.64 million recently. The economic outlook for 2026-2027 looks bright for advanced countries. Ongoing conditions and support from 2025 are expected to help maintain growth. Avalanche, a cryptocurrency, is trading around $12 after a nearly 2% decline. Grayscale is seeking to convert its Avalanche Trust into an ETF with US regulators. In financial markets, brokers in 2025 are expected to offer low spreads and high leverage. It’s advisable to choose brokers based on region and trading needs, such as those using the MT4 platform or offering Islamic accounts.

Impact Of Rising Jobless Claims

The increase in continuing jobless claims to 1.923 million signals a cooling labor market. While these numbers remain significantly lower than the over 6 million seen in 2020, this steady rise is an important signal for the Federal Reserve. We should keep an eye on January’s non-farm payrolls report for further evidence of this trend. This data supports the belief that the Fed will ease policy next year. The market is already reflecting this possibility, with derivatives based on the Fed Funds Rate showing more than a 70% chance of a rate cut by the end of the second quarter of 2026. This raises concerns that new long positions on rate-sensitive assets might be too optimistic. The expectation of lower US rates is putting pressure on the US Dollar, which is why we’re seeing pairs like USD/CAD at five-month lows. This trend may continue into the new year, making bearish options strategies on the Dollar Index appealing. However, we should note the thin holiday trading volumes, which can lead to sharp, unexpected price movements. Gold’s recent drop from its all-time high above $4,520 is a typical case of profit-taking after a big surge driven by hopes for rate cuts. This pattern resembles what we observed in 2024, where anticipation of Fed changes triggered significant rallies. Selling out-of-the-money call options could be a way to earn income, assuming the price stabilizes before its next major move. Even with signs of a slowing economy, the outlook for stocks remains positive for 2026, suggesting that market dips may be good buying opportunities. As the S&P 500 stabilizes, selling put spreads below the current market level could be a wise strategy in the coming weeks, allowing us to collect premiums while positioning for expected strength in the new year. Create your live VT Markets account and start trading now.

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