In November, pending home sales in the United States rose by 3.3%, which was much higher than the expected 1%. This indicates a positive shift in the housing market. The Dollar stayed strong after dropping from its record highs, losing over 3% in one day. At the same time, gold traded below $4,400, with optimism about peace talks between Ukraine and Russia affecting its prices.

Crypto Markets React Positively

Cryptocurrency markets enjoyed a boost on Monday, with Bitcoin, Ethereum, and Ripple rising by about 3%. This increase happened despite low trading volumes during the holiday season, as peace talks between the US and Russia continued to create a supportive atmosphere. Bitcoin and major altcoins turned bullish as selling pressures eased. Economic forecasts for 2026 suggest strong growth in developed countries, thanks to stabilizing factors emerging from 2025. The crypto market saw a turbulent 2025; however, positive regulatory changes in the U.S. and other advancements suggest a bright future. Digital assets are also benefiting from developments in Treasury management and AI adoption. FXStreet offers valuable insights but warns about potential risks. All investments carry risks, including the possibility of losses.

Unexpected Economic Strength

The November home sales report showed a surprising increase of 3.3%, much stronger than the expected 1%. This suggests that the US economy is gaining more momentum as we head into 2026, based on the steady growth we observed throughout 2025. This unexpected strength might lead the Federal Reserve to reconsider the planned 75 basis points rate cuts for next year. While the overall economic outlook for 2026 looks solid, we’re noticing some year-end weaknesses in AI stocks, which have recently pulled down the Dow. This appears to be simple profit-taking after a significant rise, similar to trends we have seen in other high-growth sectors at the end of 2023. This dip could be a chance to prepare for a potential rebound in early January when market liquidity returns. Gold’s quick drop from its record high over $4,500 is typical for the holiday market, likely intensified by low trading volumes. Profit-taking and optimism regarding peace talks contributed to this sudden decline, especially after a historic rally in 2025 that saw prices nearly double from 2024. Options traders might see this increased volatility as a chance to sell premium, betting that prices will stabilize as markets settle. The strong US housing report boosts the case for the US Dollar against currencies like the Pound Sterling. The Federal Reserve has less reason to cut rates aggressively compared to the Bank of England, which is facing a lagging economy. We should expect the Dollar’s strength to continue into the new year, presenting potential opportunities in currency futures. Crypto markets like Bitcoin and Ethereum are benefiting from renewed strength, reacting positively to the same geopolitical factors affecting gold. This uptrend builds on a volatile 2025, which was ultimately backed by meaningful regulatory progress and asset tokenization. This sensitivity to macroeconomic news is expected to continue, creating opportunities in futures and options for those who anticipate volatility. Create your live VT Markets account and start trading now.

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