The S&P 500 and Nasdaq have quickly shifted to a bullish trend, leading to daily gains. After retail trading started, there was a pullback to the 6,955 level, but a bullish rebound soon followed, helping clients take advantage of quick market changes. Today, precious metals are starting to show patterns similar to earlier in the week after a decline. The strengthening dollar is likely to influence risk-taking, leading to a slight correction in most real assets, with the exception of oil.

Ripple Trading Update

Ripple (XRP) is trading at $2.22 and facing selling pressure. The broader cryptocurrency market is experiencing fear-driven reversals. Despite this, XRP’s support level remains strong after earlier gains this year. There are several guides available for trading different currencies and assets in 2026. These include top-rated Forex brokers and those that specialize in certain assets, like gold and EUR/USD. The guides evaluate brokers on various criteria to help traders make informed choices. FXStreet warns that this content includes forward-looking statements and carries risks. The platform is not responsible for decisions made based on this information and advises thorough research before investing. No investment advice is provided, as FXStreet is not a registered advisor. We seem to have encountered a classic bear trap in the S&P 500 and Nasdaq, where a quick dip was quickly bought up. The CBOE Volatility Index (VIX), which briefly rose above 18 last week, is now settling around 15, indicating that the market scare was temporary. Traders might consider selling put spreads below key index support levels to take advantage of the receding volatility premium.

Dollar Impact on Markets

The dollar’s strength is a crucial factor for the coming weeks. Following a strong jobs report for December 2025, which showed 215,000 new jobs added, expectations were exceeded. This strength is applying pressure to most risk assets, suggesting caution for long positions in foreign currencies against the dollar. Long USD/JPY positions could be beneficial due to the continued strength of US economic data. The dollar’s strength is also affecting gold, which is pulling back from its recent highs near $4,500 per ounce. This reflects what happened in 2022 when aggressive Federal Reserve policy caused the Dollar Index (DXY) to surge, limiting gold’s upside. Currently, buying short-term put options on gold ETFs may be a good way to hedge or speculate on a potential pullback toward the $4,450 support level. Oil is the exception, drifting lower due to increased supply from Venezuela. Last week’s EIA report highlighted this weakness, showing a surprise crude inventory increase of 3.1 million barrels when a small draw was expected. Traders should look for a potential technical bounce, but the supply-side pressure suggests that selling call options against long positions might be a wise income-generating strategy. In the cryptocurrency market, fear is returning, reversing the year’s early gains. The Crypto Fear & Greed Index has dropped from “Neutral” back into the “Fear” zone, currently at 38. As XRP and other assets face selling pressure, the increased volatility makes derivatives attractive for hedging or making directional bets with defined risk. Create your live VT Markets account and start trading now.

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