A recent report on global currencies and commodities reveals changing market patterns. In Australia, the Producer Price Index (PPI) is at 3.5% for the fourth quarter. The Japanese Yen is weakening against the US Dollar, now at 154.00 as the USD/JPY trend rises. The EUR/USD pair is experiencing a downward shift, trading between 1.1920 and 1.1925, down 0.35%. GBP/USD has also fallen to around 1.3750, helped by the US government avoiding a shutdown, which boosts the USD. Gold prices are declining after a 25% rise earlier this month, as government funding agreements support the USD. Stellar has hit a three-month low of $0.20 due to negative market sentiment. Microsoft has seen a $400 billion drop in its market value after earnings. Bitcoin, Ethereum, and Ripple are correcting, with Bitcoin nearing $80,000 and Ethereum dropping below $2,800.

Top Brokers For 2026

The newsletter lists the best brokers for 2026. This includes brokers with low spreads, those ideal for trading EUR/USD, and those offering Islamic & Swap-Free accounts. The FXStreet team reminds readers about the risks of trading and the need for personal research before making financial decisions. The US dollar is gaining strength, and we need to adjust our strategies accordingly. A new spending deal in Washington is reducing political uncertainty, making the dollar the safest choice for capital right now. This shift is drawing investment away from almost all other assets, including foreign currencies and stocks. We can expect continued pressure on pairs like EUR/USD and GBP/USD in the coming weeks. The Federal Reserve has maintained higher interest rates compared to other central banks since the aggressive hikes in 2023-2024. This difference in policy is boosting the dollar’s value. Any trading strategy should lean toward dollar strength against European currencies. The latest Australian Producer Price Index at 3.5% shows that global inflation is still a pressing issue. While it is lower than the highs seen a few years ago, it is enough to keep central banks from aggressively cutting interest rates. This situation of persistent inflation and high US rates supports a stronger dollar.

Market Nervousness And Opportunities

We are observing great nervousness in the equity markets, especially highlighted by Microsoft’s significant single-day loss. This indicates that major indices may be at risk of a wider correction, as a few tech stocks have contributed to most market gains through 2025. Consider buying put options on indices like the Nasdaq 100 to hedge against or capitalize on a potential decline. The recent drop in gold prices is due to profit-taking and the dollar’s rise. After a significant 25% rally this month, the precious metal became overbought and susceptible to a pullback. Until the dollar’s strength slows down, we can expect traders to continue selling gold, making short-term bearish strategies, like buying puts on XAU/USD, potentially profitable. The weakness of the Japanese Yen is especially noteworthy, with USD/JPY trading at 154.00. This level marks a critical intervention point from back in 2024, highlighting the stark policy contrast between the aggressive US Fed and the still-accommodative Bank of Japan. This trend is likely to continue, making long USD/JPY positions appealing. Finally, the sell-off in cryptocurrencies indicates a “risk-off” market environment. As investors seek safety, they are quickly selling off speculative assets like Bitcoin and Ethereum. This trend is expected to continue as long as market volatility remains high and demand for the dollar increases. Create your live VT Markets account and start trading now.

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