Gold prices in Malaysia fell on Tuesday, according to FXStreet data. Gold was MYR 615.69 per gram, down from MYR 625.81 on Monday. Gold dropped to MYR 7,181.34 per tola from MYR 7,299.33 the day before. FXStreet also listed prices of MYR 6,156.94 for 10 grams and MYR 19,149.90 per troy ounce.

How Fxstreet Calculates Local Gold Prices

FXStreet converts global gold prices into Malaysian Ringgit using the USD/MYR exchange rate and local weight units. Prices are updated daily at the time of publication. They are for reference only, and local prices may vary slightly. Central banks hold the most gold and use it as part of their reserves. World Gold Council data shows central banks bought 1,136 tonnes of gold worth about $70 billion in 2022. This was the highest yearly total since records began. Gold often moves in the opposite direction of the US Dollar and US Treasuries. It can also move against risk assets like stocks. Key drivers include geopolitics, recession worries, interest rates, and the US Dollar, since gold is priced in dollars (XAU/USD). Gold prices in Malaysian Ringgit fell today, February 17. This mirrors a weaker international XAU/USD price as the US Dollar strengthens again. The drop comes after a period of sideways trading. It may be a chance to buy, or a sign that prices could fall further. Derivatives traders should focus on whether this is a short-term pullback or the start of a new downtrend.

Key Drivers For Derivative Traders

The main factor to watch is the outlook for US interest rates, because gold does not pay interest. US inflation data for January 2026 was slightly higher than expected at 3.2%. As a result, markets are moving expectations for the first Federal Reserve rate cut to a later date. Higher rates for longer tend to hurt gold, because yield-paying assets look more attractive. A stronger dollar also makes gold more expensive for buyers using other currencies, and that is happening now. The US Dollar Index (DXY) is up more than 2% so far this year and has recently tested resistance near 105.50. For derivatives traders, this negative relationship matters. If the dollar rally starts to fade, it could be a strong bullish signal for gold. Central bank buying has also supported gold in recent years. Buying stayed strong through 2025, but the latest World Gold Council data shows a 15% slowdown compared with the record pace in 2022. This may mean a key source of demand is becoming more sensitive to price, which could weaken the market’s support. With this backdrop, traders may consider buying put options to hedge against a move down toward the $1,900 per ounce support level in the global market. If you think the pullback is a buying chance, selling cash-secured puts or buying call spreads can offer a defined-risk way to trade a rebound. Watch for clear signs that the dollar rally is breaking, as that may be the main signal for a bullish entry in the weeks ahead. Create your live VT Markets account and start trading now.

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GBP/USD fell on Tuesday. It dropped below 1.3600 and touched around 1.3570. The move followed UK jobs data that showed weaker conditions. The UK ILO Unemployment Rate rose to 5.2% in the three months to December. That is the highest level in almost five years and was above forecasts of 5.1%. The Claimant Count rose to 28.6K in January, up from 2.7K in December. Employment change also slowed, slipping to 52K from 82K.

Uk Wage Growth Slows

Wage growth cooled. Average Earnings Including Bonus rose 4.2% year on year in the last three months of 2025, down from 4.6%. Markets had expected 4.6%. This release followed a weak UK GDP report last week. Together, the data increased expectations that the Bank of England could lower borrowing costs at its March meeting. A correction dated 17 February at 08:24 GMT said the unemployment period was the three months to December, not January. It also clarified that the earlier 4.6% figure referred to Average Earnings Including Bonus, not Average Earnings Excluding Bonus. The latest labour data suggests the UK economy is losing momentum. Unemployment has reached a five-year high at 5.2%, and wage growth slowed more than expected. This weakness also matches last week’s GDP report, which showed the economy shrank by 0.1% in the final quarter of 2025.

Rate Cut Expectations Build

These numbers increase pressure on the Bank of England to cut interest rates in March. Overnight index swaps now price in an 80%+ chance of a cut next month. This contrasts with the US, where strong job data has pushed back expectations for Federal Reserve rate cuts. We think traders should consider buying GBP/USD put options with strike prices near 1.3500 or lower. Late-March or April expiry could help capture downside after the central bank decision. This approach offers a way to profit from further GBP weakness while keeping risk limited to the premium paid. This setup is similar to past episodes, such as mid-2019, when repeated weak data was followed by a sharp fall in sterling. As the March meeting gets closer, we expect implied volatility in sterling options to rise. Taking bearish positions now may be cheaper than waiting until volatility increases. Create your live VT Markets account and start trading now.

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EUR/GBP rose for a second day, reaching around 0.8725 in early European trade after weaker UK jobs data. The UK claimant count increased by 28.6K in January, and the unemployment rate rose to 5.2% in the three months to December. Average Earnings Excluding Bonus slowed to 4.2% year on year, in line with expectations. Average Earnings Including Bonus eased to 4.2% from 4.6%.

Uk Jobs Data Lifts Eurgbp

These figures suggest softer UK labour market conditions at the start of 2026. They also support expectations of a 25-basis-point Bank of England rate cut in March. This weighed on the pound and helped push EUR/GBP higher. The euro was little changed after Germany’s final CPI matched the flash estimate, printing 2.1% year on year in January. The data did not shift expectations for European Central Bank policy. However, talk of a potential ECB rate cut could cap further euro gains. A break above last week’s monthly high near 0.8740 could open a move toward 0.8800, a level last seen in December 2025. The report was corrected on 17 February at 08:17 GMT, stating the January claimant count was 28.6K, not 28.8K.

Market Pricing And Trade Setup

The rise in UK unemployment to 5.2% points to a cooling economy. It is a notable jump from the 4.5% levels seen just a few months earlier in late 2025. This softer labour market supports our view that the Bank of England may cut rates next month. Overnight swaps now price an 85% chance of a March cut. As a result, sterling is under pressure, which supports a higher EUR/GBP. We see buying EUR/GBP call options as a straightforward way to take advantage of this move. With spot testing resistance near 0.8740, strikes around 0.8750 or 0.8800 look attractive over the coming weeks. This setup targets a potential move back to levels not seen since December 2025, while keeping downside risk limited. One-month implied volatility in EUR/GBP has risen from about 7% to above 8.5% since the data release, suggesting the market expects larger swings. The main driver is sterling weakness, but a possible shift in ECB rate expectations is the key risk to the trade. This uncertainty makes options a practical way to manage risk versus taking an outright spot position. Create your live VT Markets account and start trading now.

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Magna International reported Q4 2025 adjusted EPS of $2.18, up from $1.69 a year ago and above the Zacks estimate of $1.81. Net sales rose 2% to $10.85 billion, topping the $10.48 billion estimate. Body Exteriors & Structures revenue rose 4.6% to $4.25 billion, above the $4.1 billion estimate. Adjusted EBIT increased to $465 million from $371 million, also above the $365.22 million estimate. Power & Vision revenue increased 1.5% to $3.84 billion, slightly above the $3.8 billion estimate. However, adjusted EBIT fell to $166 million from $235 million and missed the $269.2 million estimate. Seating Systems revenue jumped 8.1% to $1.63 billion, beating the $1.48 billion estimate. Adjusted EBIT climbed to $136 million from $67 million, above the $89 million estimate. Complete Vehicles revenue fell 10.1% to $1.26 billion, but still came in above the $1.24 billion estimate. Adjusted EBIT edged down to $50 million from $56 million, but stayed above the $39.62 million estimate. Cash was $1.61 billion as of Dec. 31, 2025, up from $1.25 billion. Long-term debt was $4.69 billion, up from $4.13 billion. Operating cash flow was $1.98 billion, compared with $1.91 billion. The quarterly dividend increased 2% to 49.50 cents per share. It is payable March 13, 2026, to shareholders of record on Feb. 27, 2026. For 2026, Magna expects revenue of $41.9-$43.5 billion (2025: $42.01 billion), an adjusted EBIT margin of 6-6.6%, adjusted diluted EPS of $6.25-$7.25 (2025: $5.73), and capex of $1.5-$1.6 billion. Because earnings beat expectations and guidance was strong, Magna’s implied volatility will likely drop quickly. The earnings event is now over, so the extra uncertainty is gone. That usually lowers option premiums. This post-earnings volatility crush means selling options now is less appealing than it was yesterday. The key point is the 2026 EPS outlook of $6.25-$7.25, which points to stronger profits ahead. That outlook can support a bullish options trade. Buying call options that expire in March or April 2026 may be a reasonable way to target a continued move higher. Another choice is a bull call spread, which reduces upfront cost while still aiming for upside. The positive view is also supported by industry data. Recent reports show U.S. light vehicle sales in January 2026 held steady at a seasonally adjusted annual rate of 15.8 million units. That suggests demand is holding up, which supports Magna’s revenue guidance. A stable auto market also lowers a major outside risk. Still, results were not strong everywhere. Power & Vision saw weaker profitability, tied to product mix and costs. That could limit excitement and make the stock’s rise uneven. Because of that, defined-risk trades like spreads may be safer than buying calls without protection. In 2025, Magna’s strong quarters often led to a steady rise over time rather than a one-day spike. The 2% dividend increase may also draw long-term investors and help support the stock. So even after implied volatility falls, there may still be a chance to position for gains over the next several weeks.

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Trading was cautious early Tuesday as markets reopened after the US holiday. The calendar includes Germany’s ZEW sentiment survey, the US weekly ADP Employment Change (4-week average), and Canada’s January inflation report. The UK ONS said the ILO unemployment rate rose to 5.2% in the three months to December. Employment rose by 52K. Annual wage growth (excluding bonuses) eased to 4.2% from 4.4%, in line with forecasts.

Dollar Yield And Equity Signals

The US Dollar Index held near 97.00 after small gains on Monday. US stock index futures were down 0.3% to 0.7%. The 10-year US Treasury yield fell to about 4.02%, its lowest since early December, down more than 0.5% on the day. The New York Fed is due to publish the February Empire State Manufacturing Index, and several Fed officials are scheduled to speak. USD/CAD traded around 1.3650. Canada’s CPI is forecast at 2.4% year-on-year in January, unchanged from December. Gold closed below $5,000 on Monday and traded near $4,900 on Tuesday, down more than 1.5%. GBP/USD was below 1.3600, EUR/USD below 1.1850, and USD/JPY was under 153.00 after a 0.5% rise on Monday. NZD/USD held above 0.6000 ahead of an RBNZ decision on Wednesday. Markets are starting the week in a clear risk-off mood. Investors are moving into safer assets. That is pushing US stock futures lower and sending the 10-year Treasury yield to its lowest level since December. This caution is also showing up in volatility: the CBOE Volatility Index (VIX) is moving toward 20. In this environment, the focus should be on protecting capital and using strategies that can benefit if prices keep falling. The stronger US dollar is the key theme. DXY is holding firm around 97.00. One approach is to position for more dollar strength by buying dollar call options, or by selling put options on weaker currencies like the euro and the British pound. This looks similar to the dollar rally seen in the second half of 2025, when global growth worries returned.

Uk Data And Pound Pressure

In the UK, higher unemployment and slower wage growth are putting pressure on the pound. The ONS report, with unemployment at 5.2%, raises the chance that the Bank of England cuts rates sooner than markets expected. Buying GBP/USD puts below 1.3600 looks like a reasonable trade idea for the coming weeks. With US stock futures pointing lower, another way to reduce risk is to buy put options on the S&P 500 and Nasdaq 100 for downside protection. Speeches from Federal Reserve policymakers will matter. Any hawkish message could add to the equity sell-off. In past periods, “higher for longer” comments have often come before weaker stock performance. Canada’s inflation report is the next major event risk. The market expects 2.4%. However, given recent global trends, a softer reading is possible, and that would likely weaken the Canadian dollar. A way to position for that is to buy USD/CAD call options before the data. Gold is not behaving like a typical safe haven right now. Prices have fallen below $4,900, suggesting the dollar is strong enough to pressure commodities and trigger selling in gold as well. That creates an opportunity to treat gold more like a dollar-sensitive asset than a defensive one, for example by selling out-of-the-money call options to collect premium. Create your live VT Markets account and start trading now.

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UK employment rose by 52,000 over the three months to December. This was down from 82,000 in the previous period. These figures show how many more (or fewer) people were employed over a rolling three-month period. The latest result is 30,000 lower than the prior reading.

Cooling Labour Market

UK employment growth has slowed to 52K, which points to a cooling economy. A weaker labour market usually reduces pressure on wages. In our view, this leaves the British Pound (GBP) at risk, especially against currencies supported by stronger growth, such as the US Dollar. Together with January’s inflation reading, which eased to 2.1%, the jobs numbers give the Bank of England more room to cut interest rates earlier than expected. Markets are now assigning a higher chance of a rate cut before summer. This backdrop supports strategies that may benefit from lower UK rates, such as buying short-sterling futures. The slowdown also shows up in consumer data. January 2026 retail sales fell by 0.5%, which was unexpected. This suggests softer hiring is already weighing on household spending. That is a negative signal for UK-focused stocks. We see a potential opportunity in buying put options on the FTSE 250 index, which tends to be more sensitive to the domestic economy. There is also a historical parallel. In the late 2000s, employment growth slowed before the central bank started cutting rates. Through 2025, job creation steadily weakened from the stronger numbers seen early in the year. This reinforces our view that bearish positions on UK assets may be justified.

Historical Parallel

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Germany’s Harmonised Index of Consumer Prices (HICP) rose 2.1% year on year in January. The result was in line with expectations. This figure shows the annual change in consumer prices using the EU’s harmonised method. No other data points were provided.

Implications For Ecb Policy

We view Germany’s January inflation reading of 2.1% as a sign of stability. It reduces the near-term risk of a surprise interest-rate move from the European Central Bank. This is a clear shift from much of 2025, when stubborn inflation was a key source of market volatility. Steady data like this supports the case for the ECB to stay patient. With this risk reduced, implied volatility in European equities may ease in the coming weeks. The VSTOXX index, which measures volatility on the Euro Stoxx 50, has already dropped below 15, its lowest level this year. For derivatives traders, lower volatility can make option premium-selling on major indices such as the DAX more appealing, especially if markets stay range-bound. Attention now moves from inflation surprises to the ECB’s forward guidance. After this release, markets are pricing in more than a 60% chance of a rate cut by July 2026. That is a meaningful rise from just a month ago. We expect interest-rate futures to keep reflecting this more dovish view, with traders positioning for lower rates in the second half of the year. In FX markets, stable inflation is unlikely to give the euro much support. Without the prospect of higher rates, EUR/USD may find it hard to push higher. We expect traders to use options either to hedge downside risk or to benefit if the pair remains below key resistance levels.

Outlook For The Euro

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UK average earnings, excluding bonuses, rose 4.2% in the three months to December versus a year earlier. This matched forecasts. This measure tracks pay growth over a rolling three-month period. The rate reported for December was 4.2%.

Wage Growth Still Too High

Average earnings for December 2025 came in as expected at 4.2%, but that is not necessarily good news. Wage growth at this level is still too high for the Bank of England to be comfortable about long-term inflation. It supports the view that rate cuts in 2026 will be gradual and cautious. This is more worrying when set against last week’s January 2026 inflation reading, which edged up to 3.1%. Many expected inflation to keep falling, so the rise was a surprise. With the Bank Rate unchanged at 4.75% since last summer, markets are now scaling back the chances of a rate cut before the third quarter. Similar stubborn wage growth through 2025 was a key reason the Bank of England paused its rate-cutting cycle. In FX markets, this strengthens the case for the pound versus currencies backed by more dovish central banks. We see value in near-term GBP/USD call options, as the UK–US rate gap may widen in sterling’s favour. GBP/USD has also held support around 1.2850, which offers a clear reference point for these trades. For equity traders, the message is more cautious for the UK-focused FTSE 250. If borrowing costs stay higher for longer, it can squeeze profits and cap growth. One approach is to use futures to set short positions, or to buy put options as a hedge against a potential pullback in the coming weeks. The clearest opportunity may be in rates. We expect short-sterling futures to remain under pressure. The implied yield on the December 2026 contract is already up 20 basis points this month, and it could rise further as markets accept that rate cuts are not close.

Rates Market Implications

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UK average earnings, including bonuses, rose 4.2% in the three months to December. That was below expectations of 4.6%. The figures compare pay growth over a three-month period with the same period a year earlier. They show wage growth slowed more than forecasts suggested.

Uk Wage Growth Surprise

UK wage growth for December 2025 came in at 4.2%, well below our 4.6% forecast. This signals the labour market cooled faster than expected at the end of the year. It is also an important sign that wage-driven inflation pressure is easing. The tight labour conditions seen through much of 2025 may finally be loosening. Together with the latest January inflation report showing CPI at 2.8%, this changes our view of Bank of England policy. The case for an earlier rate cut in Q2 is now much stronger. Markets may start pricing in easier policy more aggressively in the coming weeks. For SONIA futures traders, this points to further downside in the forward curve as rate expectations fall. In 2023, when markets first sensed inflation had peaked, repricing moved quickly. A similar shift could happen again. Positioning for lower UK rates remains the clearest path.

Market Implications And Trades

In currency options, the outlook for sterling looks weaker. Smaller interest-rate differentials, especially versus the US dollar, are likely to push GBP/USD lower. Consider buying GBP put options to hedge or trade further downside, particularly as recent CFTC data shows speculative long positions are already being reduced. For UK equity indices, the message is mixed but leans cautious. Lower rates can help equities, but the reason for those cuts—a softer economy and weaker consumer demand—can hurt profits. Be careful with domestically focused stocks. Options on the FTSE 250 may help you position for higher volatility or protect against a slowdown in consumer spending. Create your live VT Markets account and start trading now.

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ING analysts said the ECB’s expansion of the EUREP facility supports the euro’s global role and could affect EUR/USD. They tied this to stronger demand for euro assets in reserves and more use of the euro in trade invoices. They said there is growing debate about whether the ECB’s push for a stronger international euro means it would accept a stronger euro. They added that the ECB would focus on how a higher trade-weighted euro affects its inflation outlook, and whether lower inflation could lead to rate cuts. They said talk of rate cuts would be more likely if EUR/USD moved closer to 1.25. They also said today’s geopolitical environment has increased the focus on building a bigger global role for the euro. They said the French government wants an extra economic review of whether promoting euro use could lift EUR/USD and hurt French exporters. ING’s base forecast puts EUR/USD at 1.22 at year-end, with upside risks. The article was created with help from an Artificial Intelligence tool and reviewed by an editor. Looking back at the 2025 analysis, the view that the European Central Bank would accept a stronger euro has proven right, with EUR/USD staying firm. The call for 1.22 by the end of last year was met. Since the start of the new year, the pair has stayed near 1.22–1.23. This steady trading suggests the ECB is putting more weight on strengthening the euro’s global role. This support is now clearer in the data. SWIFT figures for January 2026 showed the euro’s share of global payments rose to its highest level in three years. A survey of central bank reserve managers also pointed to a continued, modest shift into euro-denominated assets in Q4 2025. This suggests demand is not only speculative, but also driven by large, long-term investors. ECB officials have not done much to push back against this trend, even though eurozone inflation is still below the 2% target at 1.8% in January. There have been no major official warnings about the exchange rate. That supports the view that the ECB would only become concerned if EUR/USD got close to 1.25. This quiet stance suggests the easier path for EUR/USD is still higher. For derivatives traders, this backdrop can make buying medium-term EUR/USD call options with strikes near 1.24 appealing. This gives exposure to a possible move toward 1.25 in the months ahead while limiting downside risk. Implied volatility is still fairly low, as markets have adjusted to the ECB’s calm approach, which may make these options better value. Another approach is to sell out-of-the-money put spreads with a lower strike near 1.21. This strategy can profit from either a slow move higher or continued range trading by collecting premium, based on the view that the ECB’s stance creates support under the euro. Export-focused countries still raise concerns at times, but so far those concerns have not been enough to break the broader trend.

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