The ISM Manufacturing Prices Paid Index in the United States dropped to 58.5 in December, lower than the expected 59. This change has affected currency markets, helping the EUR/USD pair return to the 1.1700 level after the announcement. This news follows the release of the December ISM Manufacturing PMI, which decreased to 47.9 from November’s 48.2, missing the anticipated figure of 48.3. Ongoing geopolitical tensions, particularly in Venezuela, are impacting financial markets and boosting safe-haven assets like gold, which soared above $4,440.

Cryptocurrency Market Movements

The cryptocurrency market is also active, with Bitcoin moving past the 50-day EMA due to ETF inflows. Ripple is trading above $2.13 and has seen a five-day increase despite global tensions. Additionally, there is attention on future market trends and broker assessments for 2026. Several top brokers are highlighted for various trading needs, including those with low spreads, high leverage, and specialized accounts. The author has no stock positions or business relationships at the time of writing. FXStreet advises diligent research before making any investment decisions due to associated risks. The weak US manufacturing data for December 2025 points to a slowing economic trend that persisted throughout last year. The ISM index has now been below 50 for several months, echoing the slowdown observed in 2023. This may indicate continued weakness for the US Dollar.

Impact of Geopolitical Crisis

Given the ongoing geopolitical crisis in Venezuela, a move towards safe investments will likely continue to influence the markets. Consider purchasing call options on gold to take advantage of this shift, as the price has already shown strong momentum by rising beyond $4,400. This follows a notable rally for gold during the market chaos of 2025. The oil market is sending mixed signals, creating opportunities for volatility trades. While the situation in Venezuela may push prices higher, weak global demand, reflected in the recent manufacturing data, is keeping WTI crude prices below $60. This scenario is perfect for strategies like straddles or strangles, which benefit from significant price swings in either direction. The economic weakness in the US places pressure on the Federal Reserve, increasing the likelihood of future rate cuts. This perspective favors a bearish outlook on the US dollar. Traders can act on this by buying puts on the dollar index or calls on currency pairs like EUR/USD and GBP/USD. The combination of geopolitical turmoil and poor economic data creates a cautious outlook for equities. It is important to safeguard portfolios against a potential downturn in the coming weeks. Purchasing put options on the S&P 500 or other major indices is a smart way to hedge against this escalating risk. Create your live VT Markets account and start trading now.

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