In December, India’s M3 money supply rose by 12.1%, up from 9.3%. This shows a shift in the country’s financial situation, affecting how money circulates and how much banks hold in deposits. Market activity is picking up, with updates and analyses from FXStreet. Major trends include changes in currencies like EUR/USD and GBP/USD, and significant movements in commodities like gold.

Currency And Commodity Trends

The EUR/USD pair has dropped, nearing a key 55-day simple moving average. In contrast, the GBP/USD has been on a steady decline due to shifts in how the market feels about the dollar. Gold prices have bounced back, moving towards $4,450 per ounce, influenced by changing dollar strength and treasury yields. On the other hand, Ripple (XRP) has declined for three straight days, impacted by market volatility and profit-taking. Looking ahead, discussions about economic prospects for 2026 focus on market stability. FXStreet offers various broker insights, stressing the importance of transparency and careful trading. FXStreet encourages individuals to do their own research before making any investment decisions. The site is not liable for any investment choices made based on its information.

US Nonfarm Payrolls And Market Strategy

The market is gearing up for a strong US Nonfarm Payrolls report, which explains why the US Dollar has been gaining strength this week. In 2025, the US labor market showed surprising resilience, consistently exceeding expectations in the latter half of the year. This has led traders to bet on another positive report. As a result, currency pairs like EUR/USD are nearing important technical support levels around 1.1640. Given this expectation, it might be wise to buy put options on the Euro or the British Pound to speculate on further dollar strength leading into the NFP release. The implied volatility of these currency options has risen, a pattern we often saw before major data releases in 2025. This approach defines risk, which is useful if the jobs number disappoints and causes a sudden reversal against the dollar. Gold’s pullback to around $4,450 is a direct response to higher US Treasury yields, with the 10-year yield climbing back over 4.5%, a level that acted as resistance in late 2025. This rise makes gold less appealing since it doesn’t yield returns. This situation creates opportunities for bearish plays, like selling call options at a higher strike price. If wage growth in the NFP report is strong, yields could climb even higher, adding more pressure on gold. We should also take note of India’s M3 money supply increase to 12.1%, indicating growing inflationary pressures that could affect emerging markets. Rapid growth in money supply has often led to the Reserve Bank of India adopting a tougher monetary stance. Traders might consider buying call options on the Indian Rupee (INR) to bet on potential monetary tightening that could strengthen the currency soon. While the market anticipates a robust US economy, we can’t overlook calls for the Fed to think about cutting rates. This creates a significant difference in expectations. Given the uncertainty and the belief that 2026 will be more volatile than 2025, using options straddles on major indices could be a smart move. These positions can profit from significant price shifts in either direction, taking advantage of the high chances for a market shock without predicting a specific outcome. Create your live VT Markets account and start trading now.

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