In December, China’s imports rose by 5.7% compared to last year, which was much higher than the anticipated 0.9%. This growth signals a strong boost in import activities. Gold prices hit a new peak, trading at $4,620 per troy ounce, due to increased demand for safe assets. Market movements are being driven by expectations of Federal Reserve interest rate cuts, following softer inflation reports in the U.S.

Meme Coins Show Gains

Meme coins like Dogecoin, Shiba Inu, and Pepe experienced gains between 7% and 14%. While DOGE and SHIB stabilized after their recovery, PEPE continued its upward trend. The Federal Reserve faces grand jury subpoenas related to pressure from the Department of Justice, signaling heightened scrutiny. This situation creates uncertainty about the central bank’s future policies. FXStreet provides important information for investors but emphasizes the risks associated with open markets. The platform encourages investors to conduct thorough personal research before making any financial choices and does not give personalized investment advice. The surprising increase in Chinese imports for December 2025 is a promising signal for the global economy. The 5.7% rise, far exceeding the 0.9% forecast, reflects strong domestic demand we haven’t seen in a while. We should consider call options on commodities like copper and oil, along with currency options linked to commodities such as the Australian dollar.

Gold and Political Pressures

This renewed demand from China comes alongside a rush for safety, pushing gold prices above $4,600. Recent political pressures on the Federal Reserve, as shown by subpoenas, create uncertainty that typical monetary policy models can’t predict. In this environment, owning volatility and safe assets makes sense. With this context, we suggest buying call spreads on gold futures (/GC) to participate in potential gains with defined risk. The main influences are not only geopolitical anxieties but also increasing market expectations for Fed rate cuts. The CME FedWatch tool now indicates over an 85% chance for a cut by March, following the fall in U.S. core inflation below 3% in Q4 2025. In currency markets, the USD/JPY pair nearing 160.00 is close to intervention levels. We should consider buying strangles to benefit from a rapid change in either direction, whether it spikes through this level or reverses due to intervention by the Bank of Japan. We remember the strong yen rally in late 2024 when the Ministry of Finance intervened under similar conditions. Meanwhile, the Pound remains weak against the Dollar as we approach key U.S. data releases later this week. The UK’s nearly flat GDP growth in late 2025 continues to pressure the currency. We see a chance to buy puts on the GBP/USD pair (/6B) as a short-term strategy. Create your live VT Markets account and start trading now.

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