Retail sales in the United States remained steady at $732.6 billion in October, according to the US Census Bureau. This figure follows a revised increase of 0.1% in September, which fell short of the expected 0.1% rise. Binance Coin, now known as BNB, was trading around $855, showing a slight decrease from the previous day. Increased retail activity in on-chain and derivatives data suggests a more bearish sentiment.

Gold Prices Rise

Gold prices are on the rise, trading above $4,300 after experiencing recent bearish pressure. This increase is supported by a weak US dollar, which has been impacted by a rise in the US Unemployment Rate to 4.6% and slowed growth in the private sector, as indicated by PMI data. GBP/USD increased during the American trading session, reaching its highest point since mid-October, trading above 1.3430. The British Pound gained strength from positive PMI data, while the US Dollar weakened due to mixed employment figures. EUR/USD gained bullish momentum, moving towards 1.1800 as the US Dollar weakened. This comes after a drop in Nonfarm Payrolls by 105,000 in October, followed by a rise of 64,000 in November. Geopolitical tensions, including peace talks between Ukraine and Russia, are still a key focus. As of December 16, 2025, there are clear signs of a slowdown in the US economy. The unemployment rate of 4.6% is concerning, especially since it has risen above the sub-4% levels seen a couple of years ago in 2023. Flat retail sales and fluctuating job numbers, alongside a recent loss of 105,000 nonfarm payrolls, highlight this weakness and suggest a bearish outlook for the US dollar.

Weak Dollar Creates Opportunities

The weakness of the dollar is offering opportunities in the foreign exchange markets. With EUR/USD approaching 1.1800 and GBP/USD trading above 1.3430, momentum appears to be against the greenback. Traders might consider strategies that take advantage of this trend, such as buying call options on the euro or pound, as their strength is expected to persist into the new year. The combination of a weak dollar, geopolitical tensions involving Russia and Ukraine, and economic uncertainty is driving a strong rally in gold. Trading above $4,300 an ounce, gold has significantly surpassed its previous all-time highs from 2024 and is serving as a key safe-haven asset. Taking long positions through futures or call options on gold ETFs could be a wise move to hedge against further instability. In the cryptocurrency market, caution is advised despite high prices. BNB is trading around $855, which, while historically high compared to its peak of about $700 in mid-2024, shows signs of weakness. The increase in retail activity can often signal a potential peak, leading traders to consider protective puts or short positions. Overall market volatility is expected to increase as we approach the end of the year. The mixed signals of strong commodity performance against weak economic growth create an uncertain environment reminiscent of past stagflation periods. This scenario favors derivative strategies that can benefit from significant price swings, such as straddles on major indices. Create your live VT Markets account and start trading now.

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