In November, US durable goods orders dropped by 2.2%, falling short of predictions that expected a 0.5% rise. This decline indicates weaker demand in the sector. Meanwhile, the Dow Jones Industrial Average increased, driven by earnings reports and the Federal Reserve’s guidance, despite ongoing political risks. In the currency market, the EUR/USD pair rose to four-month highs due to a general weakness of the US dollar.

GBP/USD and Gold Performance

In other news, GBP/USD gained steadily, also reaching four-month highs thanks to a better appetite for risk among investors. Gold prices are nearing record highs, bolstered by geopolitical tensions and lower US Treasury yields. The crypto market is growing, particularly in tokenization, as regulatory changes influence market structure. Tether Gold leads the tokenized gold market, holding a 60% share in 2025 as demand rises alongside gold prices. Looking ahead, attention is on central bank decisions and inflation data, with ongoing focus on corporate earnings. The article includes a guide to the best brokers in 2026, providing insights tailored to various trading preferences and regions.

Market Response and Predictions

The weak durable goods report from November 2025, showing a 2.2% drop instead of an expected increase, signals challenges in the manufacturing sector. This was the largest miss in over six months and suggests a slowing US economy. Options traders might consider positioning themselves to benefit from ongoing US dollar weakness, as it seems likely to continue. The Euro has surpassed the 1.1900 mark, a significant resistance level not seen since last autumn. The British Pound is also strong, trading well above 1.3700. Buying call options on the EUR/USD and GBP/USD pairs could be a decisive way to take advantage of this upward trend as we approach the Federal Reserve’s decision this week. Gold is testing the $5,100 per ounce price point, reflecting a flight to safety, similar to patterns seen during early 2024’s geopolitical uncertainties. This rally is supported by declining US Treasury yields, which reduce the opportunity cost of holding gold. Open interest in Gold futures contracts has surged by nearly 15% in January alone, indicating robust institutional demand. All attention turns to the Federal Reserve meeting this Wednesday. The market is grappling with the slowing growth indicated by the durable goods data and persistent Core PCE inflation, which ended 2025 above 3%. This uncertainty makes strategies that benefit from volatility, like straddles on major indices such as the S&P 500, a sensible short-term consideration. Create your live VT Markets account and start trading now.

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