The article discusses recent currency movements and forecasts. The EUR/USD is recovering, hitting the 1.1700 level after disappointing US data. Meanwhile, the GBP/USD climbed above 1.3500 following weak US December PMI figures, which fell from 48.2 to 47.9, below the expected 48.3.

Geopolitical Tensions and Commodity Prices

Geopolitical tensions are impacting commodity prices. Gold is rising close to $4,450 due to US actions in Venezuela. Bitcoin is trading above its 50-day EMA, benefiting from ETF inflows. Other cryptocurrencies like Ethereum and Ripple are also on the rise, with Ripple crossing $2.13. FXStreet offers market information for informational purposes only. It emphasizes the importance of independent research before making financial decisions and is not responsible for any investment outcomes based on this information. We’re watching Brent crude closely after it bounced back from the $58.40 lows seen in April and May 2025. Downward momentum remains strong, with a key resistance around $64. Given the weak US manufacturing PMI data from December at 47.9, any rally towards this resistance may provide a good chance to short or buy puts.

Market Opportunities and Risk Considerations

The US Dollar is on shaky ground, a trend we expect to continue after the weak manufacturing data before the new year. This disappointing ISM reading suggests the upcoming Non-Farm Payrolls report could show more weakness, further pushing down the dollar. We see this as a chance to favor long positions in pairs like GBP/USD, which is already nearing 1.3500. The geopolitical tensions from US intervention in Venezuela are affecting market sentiment, leading to a flight to safety. Gold’s rise toward $4,450 and Silver’s leap above $75 are responses to this uncertainty, similar to patterns seen during significant global crises. In the coming weeks, holding long positions in precious metals—potentially using call options to manage risk—seems sensible until the situation calms. Cryptocurrencies are emerging as a separate asset class, appearing disconnected from the general risk-off sentiment. Bitcoin and other major coins are being driven by strong institutional demand, with net inflows into spot ETFs reportedly topping $500 million during the last week of 2025. We should capitalize on this momentum, as the market favors adoption stories over geopolitical news from Venezuela. Create your live VT Markets account and start trading now.

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