**The Change in Consumer Price Growth** In market news, the EUR/USD stays steady around 1.1800, thanks to a fall in the USD. The GBP/USD has reduced its gains, now below 1.3700 as market sentiment turns cautious. Gold prices have jumped by 6%, nearing the $4,950 mark. Meanwhile, USD/CHF has dropped due to a budget standoff in the US and a rise in demand for the Swiss Franc as a safe haven. In cryptocurrencies, Zilliqa’s price increased by over 20% in anticipation of the Cancun EVM upgrade. Additionally, the macroeconomic outlook is improving despite ongoing geopolitical challenges. For 2026, there are detailed guides to help you choose the best brokers for forex, CFDs, and regions like MENA and Latam. These guides explain the pros and cons of major brokers and offer options for traders focused on cost and leverage. **Eurozone Disinflationary Trend** The decline in French inflation to -0.3% is a clear signal that confirms the disinflationary trend across the Eurozone observed in the last quarter of 2025. This data increases pressure on the European Central Bank to maintain a cautious approach in its upcoming meetings. We believe it will be tough for the Euro to sustain any gains. This situation suggests that any strength in EUR/USD could be a selling opportunity. We’re considering put options on the Euro to prepare for further declines. The market now sees less than a 20% chance of an ECB rate hike this year, down from 50% last November. A drop below the 1.1750 support level may boost selling pressure on the pair. On the other hand, the US economy appears strong, with the latest jobs report showing a surprising addition of 250,000 payrolls in January. This continues the trend of a resilient US economy observed throughout much of last year. As a result, the US dollar remains favored, benefiting from weaknesses elsewhere. Although political turbulence from the budget standoff in Washington may create short-term volatility, the solid economic data supports a stronger dollar. We’re leaning towards long positions in the US dollar index (DXY), particularly against the Euro. Call options on USD/CAD are also appealing as a strong US economy usually helps Canada; however, the stronger greenback often directs the movement in this pair. Gold’s jump towards $4,950 indicates persistent market uncertainty. The metal’s price has more than doubled since the inflation peaks of 2024, serving as a key hedge for institutional portfolios. We view this recent recovery as part of a long-term strategic buying trend. Given the sharp rebound from four-week lows, we’re careful about opening new short positions; buying on dips seems to be the favored strategy. Expect volatility to rise, where long straddles using options could offer a way to trade significant price movements without needing to predict the direction. Key technical support is now around the $4,670 level. Sterling is stable ahead of the Bank of England’s interest rate decision later this week. With UK inflation remaining stubbornly high at about 3.5%, which is higher than in Europe, the BOE faces a tough choice. The market is split on whether policymakers will adopt a hawkish stance or suggest future cuts later this year. This uncertainty is raising implied volatility in the options market for GBP/USD before the meeting. A straddle or strangle on the pair seems the most rational way to prepare for potential price swings after the announcement. Any surprise from the central bank could easily lead to a 150-pip moves in either direction. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now