The Bank of Korea’s Business Survey Index for the manufacturing sector held steady at 70 in December. This means that South Korean manufacturers have a stable outlook despite current economic challenges. In the currency markets, the EUR/USD stayed at 1.1770, as traders expect more rate cuts from the US Federal Reserve in 2026. The GBP/USD also remained stable around 1.35, as the market activity slowed down at the end of the year.

Gold And Cryptocurrency

Gold hit a new high, reaching $4,550 per ounce, but settled at $4,300 after profit-taking. Meanwhile, BitMine Immersion continued to buy Ethereum, adding another 44,463 ETH to reach a total of 4.11 million ETH. Looking forward, 2026 looks promising for advanced economies after a resilient 2025. The growth factors from last year are expected to continue positively impacting the economy. In 2025, the crypto market experienced volatility due to regulatory changes in the U.S. and the emergence of Digital Asset Treasuries. Predictions indicate ongoing growth and adoption in the coming years, especially in areas like AI and tokenization. This information is for informational purposes only and carries risks. It’s important to research thoroughly before making investment decisions, as markets can lead to potential losses.

Market Predictions For 2026

With the US Dollar showing weakness, more declines are expected as we enter January 2026. The market is pricing in more rate cuts from the Federal Reserve after the one in December 2025. Futures markets show nearly a 70% chance of another cut by March. We should consider buying call options on EUR/USD and GBP/USD, especially since the pound is holding above the 1.3500 level. Gold’s recent peak of $4,550 an ounce reflects significant market anxiety. This isn’t just due to the weak dollar; it shows a “dismal mood” and a search for safety, which we can take advantage of. After gold returned over 30% in 2025, buying calls as it dips back to $4,300 could be a smart way to hedge against future instability. We also need to pay attention to Asia. The flat South Korean manufacturing BSI at 70 indicates ongoing pessimism in a crucial global supply hub. Recent data shows South Korea’s exports have fallen for three consecutive months, raising concerns about global growth. This situation might open up opportunities for put options on the KOSPI index or shorting the Korean Won against stronger currencies. As the holiday slowdown comes to an end, we should expect increased volatility in the first two weeks of January 2026. The current quiet trading ranges in major currency pairs and indices likely won’t persist once the market fully re-engages. We can prepare for this by setting up straddles on instruments like the Dow Jones or USD/JPY to profit from major movements in either direction. Lastly, the significant purchase of over 44,000 ETH by one firm shows strong confidence in the crypto market, even during the holiday lull. This comes after a fourth quarter in 2025 that saw over $50 billion in institutional inflows into digital assets. We should be ready for a potential crypto rally early in the new year, making long positions or call options on ETH appealing. Create your live VT Markets account and start trading now.

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