The S&P Global Manufacturing PMI for the United States in December stood at 51.8, meeting market expectations. This number shows that the manufacturing sector is still expanding since it is above the key value of 50. In the financial markets, the EUR/USD pair moved up towards 1.1750 as the US Dollar weakened. The GBP/USD also saw some positive movement, sitting around 1.3490, though it struggled to maintain momentum in a changing market.

Gold Drops and Cardano Rises

Gold fell sharply from about $4,400 but stabilized at $4,320 due to mixed trading conditions and shifting market feelings. Cardano, on the other hand, kept gaining from early New Year growth, surpassing $0.36, with technical signs indicating a possible breakout. Looking ahead, the global economic outlook for 2026-2027 looks strong, thanks to positive factors from 2025. The cryptocurrency market in 2026 is expected to benefit from regulatory changes, the use of digital asset treasuries, and growing adoption of AI and tokenization. Various brokers are ranked for 2026 on criteria like low spreads, high leverage, and regional services, providing a resource for traders seeking different market exposures. The 51.8 PMI reading indicates that the economy is starting the year on solid ground, meeting expectations and continuing the steady expansion trend seen throughout 2025. With holiday trading volumes still low, option premiums are relatively cheap, making it an ideal time to set positions before volatility increases. This quiet period is a good opportunity to get ready for the market’s first big challenge.

Attention on US Jobs Report

All eyes are now on the upcoming US jobs report, which will be crucial for guiding market direction. We expect a shift from the current calm, as this data will greatly influence the Federal Reserve’s decisions. Derivative traders should explore strategies that benefit from rising volatility, like long straddles on indices such as the S&P 500, as the release approaches. The market currently leans towards a dovish Fed, which is putting pressure on the US Dollar. This outlook is reasonable since the central bank paused and started easing its policy in 2025, after a long stretch of tightening that began years ago. This environment likely supports continued strength in the EUR/USD, and options can be used to target a rise toward the 1.1800 level. Gold’s recent decline from around $4,400 should be seen as a buying opportunity instead of a reversal. The support from a dovish Fed and ongoing geopolitical tensions makes a bearish outlook hard to argue. This pullback can be a chance to buy call options or bull call spreads, aiming for a retest of the recent highs in the coming weeks. In the equity market, conditions are stable, but a notable shift is occurring below the surface, with chip stocks gaining while other tech companies lag. This suggests that focusing on specific sectors may yield better returns than broad market bets. For currency pairs like GBP/USD, which are holding within familiar ranges, range-bound strategies could work well until the jobs report causes a breakout. Create your live VT Markets account and start trading now.

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