The United States saw a natural gas storage drop of 38 billion cubic feet, which was less than the predicted drop of 53 billion. This information could influence energy markets and trading strategies in related areas. In the currency markets, the EUR/USD pair is recovering towards 1.1750, despite earlier downward trends, with low trading activity as the year wraps up. Meanwhile, the GBP/USD is weak around 1.3450, partly because of a slight recovery in the US Dollar made during year-end trading adjustments.

Gold And Cryptocurrencies

Gold prices have pulled back to around $4,300 due to profit-taking and shifts in position. However, they are still on track to show gains for December. Bitcoin, Ethereum, and Ripple have held steady, showing potential for gains as they deal with important resistance levels. The economic outlook for 2026-2027 in advanced countries looks bright, with expectations for continued support from 2025. In 2025, the crypto market was volatile, impacted by favorable regulatory changes and a rise in AI and tokenization use. The smaller-than-expected natural gas withdrawal of 38 billion cubic feet hints at lower demand as January approaches. Short positions on Henry Hub futures or buying puts may be wise since this suggests a milder winter so far. A similar pattern happened in winter 2022-2023, leading to a notable price drop in the first quarter.

Equity Markets And The US Dollar Index

As equity markets like the Dow Jones slip in low holiday trading volume, we should brace for more volatility in the new year. The CBOE Volatility Index (VIX) has been low, akin to late 2023, but this calm won’t likely last as institutional traders return. It may be prudent to buy VIX call options or collars on major index positions to protect against possible January disruptions. The US Dollar Index is moving without clear direction, which is typical for the year’s final week. This quiet period is an opportunity to prepare for the first big data release of 2026, likely the Non-Farm Payrolls report in early January. A strong jobs report, exceeding the 2025 monthly average gain of about 180,000, could boost bullish dollar bets and pressure pairs like EUR/USD and GBP/USD. Gold’s pullback to the $4,300 area seems to be standard year-end profit-taking after a solid five-month rally. While the longer-term outlook is positive, the favorable economic predictions for 2026 might diminish gold’s appeal as a safe haven in the short term. This dip could be an opportunity to sell some out-of-the-money covered calls against long positions to earn income while waiting for the next move. Create your live VT Markets account and start trading now.

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