In September, the United States issued 1.415 million building permits, up from 1.312 million in August. The US dollar has strengthened, affecting other currencies like the Canadian dollar and Japanese yen. The Canadian dollar is under pressure from oil prices, while the yen responds to changes in expectations from the Federal Reserve.

Pound Sterling Performance

The pound sterling fell below 1.3450 after the US released its nonfarm payrolls data. Meanwhile, gold is on the rise, approaching yearly highs of around $4,500 per troy ounce. Bitcoin holds steady at $90,000, but XRP struggles with low demand. Ethereum remains unstable amidst ongoing ETF outflows, although it has stabilized above $3,000. Next week, the US Consumer Price Index (CPI) report may impact the US dollar. This report will come out during ongoing geopolitical changes, which could influence market trends. By 2026, traders have many brokerage choices to suit their needs. Key options include regulated brokers, those with low spreads, and platforms like MT4.

Investment Advice Disclaimer

We do not provide investment advice, and we urge readers to do their own research. The information shared may involve risks, and FXStreet is not responsible for its accuracy or timeliness. Given the strong US dollar, we expect that other major currencies may decline. Last month’s jobs report was robust enough to push back expectations for a rate cut from the Federal Reserve, with futures now showing less than a 30% chance of a cut by March. This indicates that traders might want to consider bearish positions on the Euro and the Pound. The EUR/USD pair is breaking through important support levels, and GBP/USD is testing its 200-day moving average. The gap between the aggressive Fed and the more cautious central banks in Europe is likely to continue to weigh on these pairs. We see potential in buying puts on the Euro, aiming for a drop to the 1.1600 level in the coming weeks. Despite the strength of the dollar, gold is holding strong near $4,500 an ounce, serving as a hedge against geopolitical risks. Uncertainty around a possible US Supreme Court ruling on trade tariffs has made investors anxious, which supports gold prices. Buying call options on gold could provide a useful hedge against sudden market drops. With the crucial US Consumer Price Index (CPI) report arriving next Tuesday, we should brace for increased market volatility. The VIX, which measures expected market volatility, has been low, trading around 14 for the past month, making options cheaper than they were in late 2025. This is a good time to consider strategies that could benefit from significant price movements. The crypto market remains weak as institutional demand seen in late 2025 has decreased. In just the past week, digital asset investment funds experienced over $500 million in net outflows, indicating a widespread retreat from the market. This bearish outlook suggests that shorting futures or buying puts on Bitcoin and Ethereum might be a wise strategy. Create your live VT Markets account and start trading now.

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