Australia’s S&P Global Services PMI rose to 51.1 in December, up from 51 the month before. This suggests slight growth in the sector, as values above 50 indicate expansion. The EUR/USD pair dropped to around 1.1660 during the American session on Tuesday, retreating from earlier highs. Market optimism seems to temporarily support the US Dollar.

GBP/USD Market Conditions

The GBP/USD pair held steady around 1.3500 during the Asian session on Wednesday. Bullish traders may find these conditions promising, hinting at potential upward movement. Gold fell on Wednesday due to profit-taking after failing to break through $4,500. However, it still benefits from geopolitical tensions and expected Federal Reserve rate cuts. Pump.fun (PUMP) is gaining ground, similar to Bitcoin, and is currently trading above $0.002400. Its outlook has improved since December 30. Recent developments in Venezuela are creating market concerns due to uncertainty; however, predictions about the economic impact of Nicolás Maduro’s departure remain steady.

Traders and Market Strategies

Cardano has recently broken past the 50-day EMA resistance. This positive momentum and MACD divergence could lead to a potential 20% breakout to $0.505. Australia’s services PMI rose to 51.1 in December 2025, indicating some underlying strength. This has been supported by recent trade balance data showing a record surplus from strong commodity exports. Traders may want to consider buying short-term AUD/USD call options to prepare for further upward momentum. The EUR/USD pair’s drop below 1.1700 at the end of 2025 has continued, now challenging 1.1600. Recent US wage growth data was unexpectedly high at 0.5% for December, strengthening the dollar against a weaker European economic outlook. This discrepancy suggests purchasing EUR/USD put options is a good strategy to hedge against further declines. In late 2025, the GBP/USD pair was stable around 1.3500 with a bullish sentiment. This changed sharply after the Bank of England governor adopted a surprisingly hawkish stance on inflation, which remains above 4%. A bull call spread could effectively trade on the expected rise toward 1.3700. Gold’s failure to maintain the $4,500 level in late December was a critical sign that the market was overextended. With the CBOE Volatility Index (VIX) dropping nearly 15% since the beginning of 2026, demand for safe havens has weakened. Traders are now selling out-of-the-money call options with strikes above $4,400 to take advantage of the situation, betting that this level will serve as a ceiling. The broad crypto optimism from late 2025, which had Cardano positioned for a breakout, has seen significant profit-taking in the new year. Recent on-chain data indicates a 20% spike in exchange inflows over the last 72 hours, signaling that early investors are selling into strength. To safeguard portfolios, traders might consider buying protective put options on major assets like Bitcoin, as overall market sentiment appears to be shifting. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now