Baker Hughes recently reported that the US oil rig count has dropped to 406 from 414. This decrease in active rigs indicates a shift in the energy sector’s activity. Silver prices have climbed to about $67.50. In comparison, gold is trading at around $4,350, facing pressure from high US Treasury yields.

Impact Of US Dollar On Currency Pairs

The performance of the US Dollar has influenced currency pairs like EUR/USD, which rose past 1.1730. On the other hand, GBP/USD fell below 1.3400 as traders evaluated recent decisions from the Bank of England. Bitcoin is trading above $88,000, bouncing back from recent declines. Altcoins such as Ethereum and XRP are showing similar recovery patterns, with XRP aiming for a short-term rise above $2.00. Recent softer inflation data in November may not significantly change the Federal Reserve’s policy but has altered market expectations. XRP’s movement is impacted by increased ETF inflows and a decline in retail demand. These changes in commodities, currencies, and cryptocurrencies highlight the lively nature of financial markets amidst global events and policy changes.

US Oil Rig Count And Global Travel Demand

The US oil rig count is now at 406, a level not seen consistently since early 2022, which suggests a potential drop in future production. This supply shortage aligns with new data showing that global travel demand for the holidays has returned to pre-2020 levels. Derivative traders might consider purchasing call options on WTI crude futures to prepare for potential price hikes in the new year. Gold and silver continue to reach record highs, with gold currently above $4,350 due to significant central bank investments throughout 2025. Although the softer inflation report in November provided some relief, the market seems to view it as a small dip, similar to misleading signals observed in 2023. With high implied volatility, traders could explore strategies like call spreads on gold ETFs to speculate on further increases while minimizing entry costs. Central bank policies are clearly affecting currency markets. Recently, the Bank of England cut interest rates, while the Bank of Japan raised them. The UK’s latest quarterly GDP growth was only 0.1%, justifying the BoE’s decision and suggesting more weakness for the pound. Traders may look to use futures or options to short the GBP/JPY pair, as low liquidity during the holiday season could intensify this downward trend. The cryptocurrency market shows renewed strength, with Bitcoin staying above $88,000 after a turbulent period. Institutional interest, sparked by spot ETF approvals in early 2024, remains strong, with over $2.5 billion in net inflows to crypto investment products reported in the last month. Traders may take advantage of this rebound by selling cash-secured puts below the current price, earning premiums while expressing a bullish-to-neutral outlook on the market. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now