In December, France’s HCOB Manufacturing PMI was 50.7, a bit above the predicted 50.6. This suggests a small growth in the manufacturing sector, showing a glimmer of optimism. The US Dollar experienced a slight recovery, causing the EUR/USD to drop towards 1.1700. Trading was quiet due to the New Year holiday, leading to low volatility in currency pairs like GBP/USD, which stabilized around 1.3450.

Gold And Crypto Market Trends

Gold prices rose more than 1.5%, nearing $4,400, as expectations grew for lenient Fed policies and ongoing geopolitical risks. Cardano also performed well, trading above $0.36, with technical indicators hinting at the possibility of further gains. Looking ahead, the economic outlook for developed countries in 2026 seems bright, with hopes for strong performance. In the crypto market, 2025 was turbulent, but regulatory changes and innovations like Digital Asset Treasuries have sparked positive developments. For trading in 2026, several brokers are recommended, with specific suggestions for forex, CFDs, and other assets. It’s essential to be cautious when investing and conduct thorough research due to the risks involved. The French manufacturing data from December 2025 is a positive sign, indicating slight growth above the 50.7 level. However, this optimism is not reflected in the EUR/USD, which is testing one-week lows near 1.1700. This suggests that the market needs stronger data from the Eurozone before supporting a stronger euro.

Market Conditions And Investment Strategies

With low trading volumes after the New Year, we don’t anticipate significant price movements just yet. Given the weak Eurozone data alongside the French report, consider buying put options on EUR/USD to protect against a fall below 1.1700, especially if the European Central Bank remains more cautious than the Federal Reserve in the upcoming weeks. Gold shows clear momentum, pushing toward $4,400 per ounce as we enter the year. This strength is driven by expectations that the Federal Reserve will pursue a more lenient policy, making non-yielding gold more appealing. Central bank purchases have been robust, setting records in 2025 with over 800 metric tons bought by the third quarter. Traders aiming to benefit from this trend should consider buying call options on XAU/USD. With implied volatility low in this early-year lull, options provide an attractive way to gain exposure. Persistent geopolitical risks also support gold prices. Similarly, the British pound is finding it hard to gain traction, stabilizing around 1.3450 with little momentum. While the overall economic outlook for 2026 is positive, the currency markets suggest a cautious start. Traders should be careful of sharp, unexpected moves as full market activity has yet to pick up. Create your live VT Markets account and start trading now.

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