The U.S. 20-year bond auction rate rose from 4.798% to 4.846%. This increase shows a change in what investors expect and how the market is behaving. In December, Australia’s unemployment rate dropped to 4.1%, better than the expected 4.4%. This decline indicates good news for the job market.

GBP/USD Stability

The GBP/USD exchange rate remains steady above 1.3400, as traders wait for U.S. PCE and GDP data. This pair is staying within a narrow range, reflecting cautious attitudes towards U.S. economic data. Gold prices fell to nearly $4,790 after Europe backed off on tariff threats. The commodity market is responding to global events with changing trends. Ethereum saw a 3.8% drop in just 24 hours, contributing to a 14% decline over the week. The crypto market is under pressure from geopolitical issues that are affecting investor attitudes. Monero is trending downwards, dropping below $500 from a high of $800 last week. This shows less support for the cryptocurrency in the market.

Broker Recommendations

Brokers have shared various recommendations for 2026 across different trading instruments. These insights provide options for traders based on their interests and strategies. The recent increase in the U.S. 20-year bond auction yield signals ongoing inflation concerns. Recent CPI data from December 2025 shows inflation at 3.4%, exceeding the target. This suggests the Federal Reserve will likely maintain its strict approach. Traders should consider positions that benefit from higher rates, like buying puts on treasury bond futures. President Trump’s retreat from imposing European tariffs sparked a dollar rally, but that energy has slowed as we approach late January 2026. The Dollar Index (DXY) has been hovering around 106 for two weeks, indicating that the market has already absorbed the good news. We will monitor upcoming PCE and GDP data to confirm economic strength before increasing bullish dollar positions against the Euro or Yen. Gold’s significant drop from its peak near $4,900 resulted from easing trade tensions. The metal has struggled to recover since, facing challenges from high interest rates and a strong dollar. Unless there is a change in central bank policy or new geopolitical issues arise, we recommend selling call option spreads on gold to profit from its stable price fluctuations. The market rally following the Greenland deal announcement has pushed volatility down to historic lows. The VIX has consistently traded below 13 throughout January 2026, making it cheaper to buy protection. Given the ongoing tensions surrounding Greenland, purchasing VIX call options or puts on the S&P 500 can be a cost-effective way to hedge against sudden market changes. The crypto markets are not experiencing the same optimism. The bearish sentiment remains strong. Funding rates for Ethereum perpetual swaps have mostly been negative this month, meaning traders are paying to hold short positions. The market appears to view the Greenland deal as a source of uncertainty for digital assets, making put options on major cryptocurrencies a smart choice for managing risk. Create your live VT Markets account and start trading now.

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