In November, the United States reported a 0.5% increase in durable goods orders, excluding transportation. This was better than the expected 0.3% rise, showing stronger performance in non-transportation sectors. Key market updates include: – NZD/USD hitting a four-month high near 0.6000 – The Canadian Dollar struggling due to trade issues – Gold prices approaching $5,100 per troy ounce amidst tension and lower US Treasury yields

Tether Gold Dominance

Recent news highlights Tether Gold’s strong position in the market, controlling 60% of tokenized gold with a value over $2.2 billion. The crypto market is evolving with new regulations, such as the GENIUS Act for stablecoins. Editorial insights mention the EUR/USD pair easing back to 1.1870 after a rally. Broker analysis reveals top Forex brokers for 2026, offering advice for budget-friendly traders on navigating currency trades and broker services. The ongoing weakness of the US Dollar is a major focus. Gold’s rise above $5,100 indicates a clear flight to safety due to geopolitical risks. We think this trend will continue unless the Federal Reserve makes significant policy changes. We see chances to short the Dollar Index (DXY) through futures, as it has dropped over 7% since last October. Using put options on dollar-pegged ETFs provides a lower-risk way to bet on further declines. Expect to see strength in pairs like EUR/USD, which remains above the 1.1850 level.

Federal Reserve Meeting

Attention is on the Federal Reserve’s meeting this Wednesday. The fed funds futures market currently suggests a 60% chance of a rate cut by the end of Q1, a big shift from late 2025. This uncertainty makes options strategies that thrive on volatility, like straddles on Treasury note futures, appealing. While we remember the strong durable goods report from November 2025, recent data shows a softer trend. The latest flash manufacturing PMI for January 2026 fell to 49.7, indicating a slight contraction and increasing expectations for a more dovish Fed. This strengthens our view that the dollar will face challenges through February. Given these dynamics, we are keeping long positions in Gold futures and buying call options to tap into further gains. The rally beyond $5,000 mirrors the stagflation period of the late 1970s, boosted now by demand from tokenized products like XAU₮. A weak dollar and lower US Treasury yields should continue to support prices. Create your live VT Markets account and start trading now.

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