In January, South Africa saw new vehicle sales reach 50,073, up from 48,983 in the previous period. The US ISM Manufacturing PMI rose to 52.6 in January, beating expectations of 48.5. The ongoing geopolitical situation has affected commodities, with gold stabilizing after a significant drop.

Pressure On Gold And Cryptocurrencies

Gold prices are around $4,720, facing pressure from a strong US Dollar, especially after Kevin Warsh was nominated as the next Fed chair. Cryptocurrencies are experiencing volatility: Bitcoin is holding above $77,000, while Ethereum is declining towards $2,000 due to ETF outflows. Ripple (XRP) has seen low on-chain activity, with active addresses now below 18,000. Retail interest in XRP is decreasing, reflected in futures Open Interest, which dropped to $2.81 billion. In finance, top brokers in 2026 are offering low spreads and high leverage. These brokers provide valuable insights to help traders in currencies and commodities, catering to various trading needs. FXStreet shares information for educational purposes and encourages thorough research before making investment decisions. They are not responsible for any errors or omissions. The strong US dollar is currently a major theme, and we expect this trend to continue. The US ISM manufacturing index stands at 52.6, significantly surpassing the expected 48.5 and marking the highest reading in over a year. Coupled with the nomination of a hawkish Fed chair, going against the dollar seems risky.

Effects Of The Stronger Dollar

The strength of the dollar is exerting pressure on other major currencies. EUR/USD is testing the 1.1800 level, and GBP/USD is weak around 1.3650 ahead of the next Bank of England meeting. For derivatives traders, this environment favors strategies like buying put options on Euro and Pound futures or keeping short positions against the dollar. Gold is also affected by the strong dollar and rising interest rates. Following a significant rally in the second half of 2025, gold is struggling, hovering near $4,720. This correction may offer opportunities for traders to short-sell gold futures or buy puts, as market conditions have shifted away from precious metals. However, emerging markets are showing unexpected strength, aligning with HSBC’s positive outlook. South Africa reported impressive new vehicle sales for January, reaching 50,073 units—a nearly 20% increase compared to the same month last year. This suggests underlying strength in some economies, prompting traders to consider call options on select emerging market ETFs for diversification. The cryptocurrency market is still in a downtrend, showing declining retail interest and mixed ETF flows. Bitcoin is finding it tough to stay above $77,000, while active XRP addresses have significantly decreased, indicating reduced engagement. Traders should remain cautious, exploring strategies such as buying protective puts or selling call spreads rather than trying to find a market bottom. Create your live VT Markets account and start trading now.

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