In December, the ISM Services Employment Index in the United States rose to 52, up from 48.9 the month before. This increase indicates growth in the services employment sector. XRP is on a downward trend, currently priced at $2.22. Fear in the cryptocurrency market has led to a reversal of earlier gains made this year.

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Several Forex trading brokers are being reviewed for 2026. Important factors include low spreads, ideal trading conditions for EUR/USD, and high leverage options. A guide is available to help traders find the best brokers in the MENA region and those specializing in gold trading. These resources are designed to assist both new and experienced traders in better understanding market dynamics. The strong ISM Services Employment number for December, which jumped to 52, is noteworthy. This return to growth, along with last week’s Non-Farm Payrolls report showing 210,000 jobs added, indicates that the U.S. labor market is stronger than we expected. It seems the economic strength from 2025 is extending into the new year.

Impact on Federal Reserve Policy

This robust data leads us to rethink the Federal Reserve’s plans, as the case for cutting interest rates soon is becoming weaker. Derivative traders are quickly adjusting their expectations, evident in the SOFR options market, where bets on a rate cut before June are being retracted. After last year’s major policy changes, the Fed appears to have the flexibility to pause before making any adjustments. For equity traders, this situation is complicated, which may explain why the VIX has risen to 15 from its late-2025 lows near 13. While a strong economy supports corporate earnings, the possibility of interest rates remaining high for an extended period puts pressure on stock valuations. We should consider buying short-term volatility through VIX calls or options on major indices as the market absorbs this new information. Meanwhile, fear is increasing in more speculative areas of the market, as XRP declines and holds at $2.22. This suggests that capital is shifting away from high-risk assets sensitive to interest rates. This is a classic flight-to-quality move, indicating that focusing on stable, value-oriented investments over high-growth tech may be wise in the coming weeks. Create your live VT Markets account and start trading now.

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