UK producer price index for inputs falls to 0.8% year-on-year
The United Kingdom’s Producer Price Index (Input) fell from 1.1% to 0.8% year-on-year in December. This drop suggests that producers are facing less pressure from rising costs for raw materials and energy.
The GBP/USD exchange rate weakened, dropping to around 1.3400 after mixed UK inflation data was released. The UK’s annual Consumer Price Index (CPI) inflation increased to 3.4% in December, up from 3.2% in November. Core CPI also rose by 3.2%, which was expected.
UK Producer Price Index inputs declined by 0.2%, missing forecasts
The UK Producer Price Index for inputs fell by 0.2% in December, which was worse than the expected drop of 0.1%. This indicates that manufacturers are facing lower prices for goods, which could affect the economy.
In currency news, the GBP/USD exchange rate dropped to around 1.3400 due to mixed inflation data from the UK. The UK’s annual Consumer Price Index (CPI) inflation increased to 3.4% in December from 3.2% in November, while core CPI met expectations at 3.2%.
Currency Fluctuations
The EUR/USD exchange rate is also decreasing, heading toward 1.1700 ahead of important speeches from global leaders. These speeches might offer insights into future relations between the EU and the US, especially given current geopolitical tensions. In the commodities market, gold approached an all-time high of $4,900 but then retreated due to global economic uncertainty. Key cryptocurrencies like Bitcoin, Ethereum, and Ripple are experiencing major corrections, indicating increasing market pressures. The broader cryptocurrency market is seeing BNB (formerly Binance Coin) lose ground, dropping by 1%. A decline in retail interest is apparent, shown by fewer long positions and a decrease in futures Open Interest, reflecting a pessimistic market sentiment. Back in December 2025, UK producer input prices saw a 0.2% decline, which was a larger drop than expected. This indicated that cost pressures on businesses were easing, often leading to lower consumer inflation in the future.Consumer Inflation
While consumer inflation was still high at 3.4%, the producer price data offered a more important forward-looking perspective. This suggests that we should consider strategies that could benefit from the Bank of England keeping interest rates steady or even cutting them later this year. Currently, the market sees only a 15% chance of a rate hike by the third quarter, down from 40% a month ago. The disinflation trend is becoming clearer, as the official CPI data for December showed a drop to 3.1%. This has put additional pressure on the British Pound, which is struggling to remain above 1.3350 against the dollar. January’s retail sales figures also showed a 0.5% decline, reinforcing this outlook. Given the current situation, we might want to anticipate further weakness in the Sterling. Selling GBP/USD call options with strike prices above 1.3400 could be a good strategy to earn income while maintaining a bearish view. Alternatively, buying put options on the currency provides direct exposure to a potential downward move, especially since 3-month implied volatility is relatively cheap at 7.1%. Reflecting on 2025, market concerns regarding US-EU trade relations and potential tariffs contributed to gold nearing its record highs of about $4,900 an ounce. This highlights that geopolitical risks continue to drive safe-haven assets. This trend remains relevant today, as ongoing trade disputes foster a cautious atmosphere in the market. We could take advantage of this by considering long positions in gold through derivatives like futures or call options. The metal has been steady around the $4,920 level for the past two weeks, forming a solid base for a possible rise if tensions escalate. Create your live VT Markets account and start trading now.In December, the Consumer Price Index for the UK meets the expected 0.4%.
Cryptocurrency Market Moves
In December, the UK Consumer Price Index (CPI) rose by 0.4%, just as expected. This brought the annual CPI inflation up to 3.4%, an increase from 3.2% in November. Core CPI also went up by 3.2%, meeting forecasts. This week, Bitcoin, Ethereum, and Ripple have dropped in value by about 5%, 10%, and 5%, respectively. Bitcoin is now trading below $90,000, while Ethereum and Ripple have fallen below important support levels. These changes indicate a growing decline in these cryptocurrencies. Gold hit a new high near $4,900 before pulling back. Interest in cryptocurrencies is waning, as seen with Binance Coin, which dropped by 1%. President Trump has threatened to impose new tariffs on goods from several European countries, including the UK. These tariffs could start at 10% on February 1 and may increase later. Given these developments, it is essential to do thorough research before making any investment decisions. All financial activities carry risks, including the potential loss of money and emotional stress. Individuals are responsible for their investment choices and any consequences that follow.Investment Strategies And Geopolitical Concerns
With the December 2025 UK inflation data matching expectations, the Bank of England’s actions seem stable. However, this stability isn’t supporting the pound. Sterling is struggling due to geopolitical risks from potential US-EU tariffs, creating a conflict between economic data and market anxiety. In light of this uncertainty, consider using straddles on GBP/USD to take advantage of any sharp market movements once President Trump clarifies the tariff situation. Gold is clearly benefiting from a “flight to safety,” moving towards $4,900, a level that felt far away just a few months ago. This trend is linked to the new “Greenland tariffs” and is likely to continue until we receive more information, similar to gold’s rise during the early COVID-19 pandemic and the Ukraine conflict. Traders might find it beneficial to buy call options on gold futures for leveraged exposure to further gains, while limiting their maximum loss to the premium paid. On the downside, risk-averse investors are hitting speculative assets hard. Bitcoin’s fall below $90,000 is leading to a broader correction in the crypto market. This situation echoes the rapid sell-offs seen during the 2022 rate hikes when digital assets were closely tied to volatile stocks. The best move now may be to purchase put options on Bitcoin and Ethereum to prepare for a more significant correction if geopolitical tensions increase in the coming weeks. Create your live VT Markets account and start trading now.UK’s PPI core output for December shows a month-on-month decrease of 0.1% compared to zero
The UK’s Producer Price Index (PPI) Core Output for December dropped by 0.1% from the previous month, remaining steady at 0%. This decline shows how producer prices have changed.
In the currency markets, the EUR/USD decreased to 1.1700 after a recent rise, while GBP/USD stayed below 1.3450 following mixed UK inflation data. The annual CPI inflation in the UK increased to 3.4% in December, up from 3.2% in November, with the core CPI also meeting expectations at 3.2%.
Gold and Cryptocurrency Market Trends
Gold, which was near an all-time high of $4,900, has corrected slightly, holding above $4,800. At the same time, Bitcoin, Ethereum, and Ripple saw corrections of 5%, 10%, and 5%, respectively, with indicators hinting at further downward trends. In the US, President Trump hinted at new tariffs on several European nations, proposing a 10% tariff starting on February 1. BNB, impacted by the crypto market drop, fell by 1% as retail interest in futures declined. FXStreet provides these insights, stressing the importance of thorough research before investing due to risks involved. The information shared is not investment advice or recommendations from FXStreet. With gold staying above $4,800, we may soon see a test of the $4,900 record high. The flight to safety arises from the risk of new US tariffs on the EU, making call options on gold or gold-backed ETFs appealing. Similar safe-haven buying occurred during geopolitical tensions in 2024 and 2025.Euro Vulnerability and US Tariff Threat
The Euro is especially weak ahead of the US President’s speech, struggling near 1.1700. Confirmation of the 10% tariffs would hurt, given that US-EU trade in goods was over $900 billion in 2024. Traders might consider buying put options on the EUR/USD to directly address this risk. We are witnessing a fragile rebound in equity futures after a sharp decline, but this relief may not last long. The market’s fear is tangible, reminding us of the October 2025 volatility spike when the VIX soared above 20. Hedging portfolios by purchasing puts on major indices like the S&P 500 is a sensible strategy until the trade situation becomes clearer. In the UK, mixed data shows consumer inflation rising to 3.4%, while producer prices fell by 0.1%. Typically, rising inflation would boost the Pound, but global risk aversion keeps it below 1.3450. The tariff threat, which includes the UK, is likely to limit significant gains for now. Create your live VT Markets account and start trading now.Gold uptrend continues, hitting record highs as investors turn to safer assets
Gold has reached new highs for the third day in a row due to global uncertainty. Fears of a trade war and geopolitical risks, particularly President Trump’s tariff threats against eight European nations regarding Greenland, are boosting gold’s appeal as a safe investment.
Even though the US Dollar has seen a slight recovery, gold prices remain below $4,900 because of overbought conditions. These conditions, along with anti-risk sentiment and the “Sell America” trade, continue to push gold prices upward. Market participants are awaiting US inflation and GDP growth data to guide the Federal Reserve’s policy decisions.
Gold And Bond Yields
Political tensions over Greenland have caused a rise in bond yields, further benefiting gold. A trend of moving away from the dollar increases uncertainty, making gold more appealing as the US Dollar weakens. Additionally, the prospect of fewer interest rate cuts by the Fed in 2026 offers little support for the dollar. Technical signals indicate that gold’s upward trend may continue. The Moving Average Convergence Divergence (MACD) and a positive Relative Strength Index (RSI) show ongoing buyer interest despite overbought conditions. Traders are likely to react positively, which could limit any potential pullbacks. The US Dollar is showing mixed results against major currencies, remaining strong against the Swiss Franc. At the end of 2025, there was a strong push towards safety, driving gold prices to nearly $4,900 due to US-Europe tariff threats over Greenland. As we move into January 2026, gold has slightly cooled and is stabilizing around $4,850. This pullback presents an important decision point for traders in the coming weeks.US Dollar And Strategy
The “Sell America” trade that was prevalent in late 2025 seems to be slowing down, as the US Dollar Index has bounced back by 1.5% in the new year. This recovery is bolstered by last week’s hawkish minutes from the Federal Reserve meeting and a decrease in the VIX from nearly 35 in December to about 22 now. Recent data indicates that inflows into gold-backed ETFs have slowed for the first time in six months, hinting at some profit-taking by large funds. Given the overbought conditions at the end of last year, purchasing futures outright carries a significant risk of a deeper correction. A smarter approach may be to buy call options on gold, such as options with a $4,950 strike price expiring in March 2026. This strategy lets us take part in any potential rally while setting a clear limit on our possible losses if the dollar keeps strengthening. Since implied volatility in gold options has decreased from its peak in December 2025, selling out-of-the-money puts could also be an effective way to generate income. For instance, selling a February 2026 put with a strike price around the old support level of $4,700 aligns with the belief that declines will be limited. This strategy profits from time decay and the expectation that gold won’t drop sharply in the near future. Create your live VT Markets account and start trading now.NZD/USD remains strong above 0.5800 amid rising fears of a ‘Sell America’ trade
NZD/USD has increased to about 0.5835 during early Wednesday trading in Europe. This rise comes after Donald Trump announced new tariff threats against Europe, sparking “Sell America” sentiment among traders.
Due to these tariff threats, the US Dollar has weakened compared to the New Zealand Dollar. Traders are also looking forward to Trump’s upcoming speech at the World Economic Forum.
Trump’s Tariff Announcements
Trump has introduced 10% tariffs on eight European countries over issues related to Greenland. He mentioned that these tariffs could rise to 25% if a deal is not reached by June 1. This situation raises concerns about ongoing uncertainty and strained relations between countries. The Consumer Price Index (CPI) report from New Zealand, expected on Friday, will also be closely watched. Several factors affect the value of the NZD, including China’s economic performance and dairy prices. The Reserve Bank of New Zealand’s interest rate decisions aim for inflation between 1% and 3%. Macroeconomic data, how investors feel, and risk perception all play a role in the NZD’s performance. The currency usually does well when the market is confident and struggles during uncertain times.Challenges Facing The Dollar And Kiwi
This time last year, in January 2025, the “Sell America” narrative had a strong impact on trading due to tariff threats. This trend continued throughout the year, leading to a weaker dollar. Now, with NZD/USD trading at around 0.6120, the situation has grown more complex. The dollar’s future is now less clear than it was for much of 2025. Recent data indicated that US GDP growth for Q4 2025 slowed to just 1.5%. Meanwhile, the Consumer Price Index for December remained high at an annual rate of 3.2%. This economic backdrop limits the Federal Reserve’s options and adds uncertainty to the dollar’s direction. Conversely, the Kiwi faces its own difficulties, which may prompt caution from traders. New Zealand’s Q4 2025 inflation rate recently came in at 2.1% year-over-year, within the RBNZ’s target but raising concerns about potential interest rate cuts later this year. Additionally, reports show that industrial production is slowing in China, a key export market for New Zealand. The struggle between a slowing US economy and a possibly dovish RBNZ hints that NZD/USD might lack a clear direction. Traders should consider options strategies that benefit from spikes in volatility without focusing on a specific trend, like long straddles. This approach is particularly useful ahead of the impending employment data from both countries. We experienced a similar situation during the 2018-2019 period when trade policy discussions influenced the markets. During that time, the initial dollar weakness was often limited as concerns about global growth—a factor that negatively impacts the Kiwi—came to the forefront. This historical trend suggests that any additional strength in NZD/USD might be hard to maintain. Create your live VT Markets account and start trading now.USD/CAD pair hovers near weekly low of 1.3815 amid US-EU tensions
The USD/CAD pair is trading around 1.3835, close to its week low of 1.3815, as traders await US President Donald Trump’s speech at the World Economic Forum in Davos. Recent tensions between the US and EU, particularly following the US’s 10% tariffs on several EU countries due to the Greenland dispute, have limited movement in the pair.
The US Dollar Index is near 98.50, suggesting cautious trading. If the price falls below 1.3800, it may drop further to support at 1.3700. Resistance is noted at the 50% Fibonacci retracement level of 1.3893. If this level is broken, the 61.8% Fibonacci level at 1.3952 could be the next target.
Technical Indicators And Market Sentiments
The Relative Strength Index sits at 49, showing a balanced market. The 20-Exponential Moving Average is just above the current price at 1.3837, limiting any rebound. US Treasury Secretary Scott Bessent has advised refraining from retaliation over the tariffs, urging patience for a resolution. President Donald J. Trump has been in office since January 2017 and was re-elected in January 2025. He was previously a businessman and TV personality affiliated with the Republican Party. This time last year, in January 2025, the market was stagnant ahead of the Davos speech. Concerns over US-EU tariffs regarding Greenland kept USD/CAD stable around 1.3835, setting the stage for future volatility. After Trump’s speech, the US increased tariffs to 15% by March 2025, prompting the EU to impose tariffs on American goods. This trade dispute caused the US Dollar Index (DXY) to drop from 98.50 to below 95 by the end of Q1 2025. As expected, USD/CAD fell below 1.3800 and tested the 1.3700 support level.Future Prospects For USD/CAD
Now, in January 2026, the diplomatic situation has improved, but economic effects linger. Supply chain issues from the 2025 dispute have kept US core inflation stubbornly at 3.4%, as reported in last week’s CPI update. This is pushing the Federal Reserve to maintain a hawkish approach, unlike the Bank of Canada, which is adopting a more neutral stance. Due to the different monetary policies, USD is expected to strengthen against CAD in the upcoming weeks. Traders may consider purchasing call options on USD/CAD with a strike price around 1.3950, expecting a return to levels prior to the 2025 tensions. Implied volatility is higher than in 2024, reflecting the market’s awareness of last year’s tariff disruptions. Create your live VT Markets account and start trading now.The video analyzes Elliott Wave theory after a decline of over 350 points in Nifty and Bank Nifty.
The content explores how Elliott Wave Theory can predict a drop of over 350 points in Nifty and Bank Nifty. It analyzes the decline, focusing on wave patterns, support and resistance areas, and possible future trends. Traders receive advice on positioning themselves based on these forecasts.
Related topics include how different currencies are affected by factors like oil price shifts, UK inflation, and significant global events such as world leaders’ speeches. This provides insights into currency movements in pairs like EUR/CAD, EUR/USD, and GBP/USD.
Editor’s Picks and Market Movements
The editor’s picks summarize movements in currency and commodity markets. They highlight dips in EUR/USD and GBP/USD, as well as corrections in cryptocurrencies like Bitcoin and Ethereum. Predictions about BNB performance and Greenland tariffs are also discussed, setting the stage for future market changes. Additionally, there are overviews of the top brokers for 2026, featuring the best options for trading currencies, CFDs, and gold. The text emphasizes the importance of thorough research before investing in open markets, along with a warning about the risks and potential losses involved. The disclaimer clarifies that the opinions shared do not count as investment advice. After the recent 350-point drop, we recognize this as a major event within the current Elliott Wave framework. Derivative traders should focus on the crucial support level for the Nifty, which we pinpoint at around 24,500. The India VIX has risen over 15% this week, reaching nearly 18.5, indicating a significant increase in expected volatility that options traders can use. One possible scenario is that this decline represents a corrective fourth wave, with a final fifth wave rally likely in the coming weeks. If the market stabilizes above key support, traders might think about buying call options or setting up bull call spreads. This view is supported by strong industrial production figures for December 2025, which exceeded expectations and indicate economic strength.Market Strategies and Global Factors
On the other hand, this drop might signal the start of a larger downtrend, so we need to be ready for a bearish outcome. A clear break below the 24,500 support level would challenge the bullish outlook, prompting traders to consider put options for protection against losses. We’re also keeping an eye on Foreign Institutional Investor (FII) activity, which has shown a net outflow of over ₹8,000 crore in the last ten trading sessions—a bearish sign not seen since last year. A similar sharp correction occurred in the third quarter of 2025, followed by a period of high volatility before the market found its direction. This suggests strategies like long straddles or strangles could help traders benefit from large price movements, regardless of direction. The key is positioning for the volatility expansion that typically follows such sharp market shifts. Global factors are important too, especially with the Reserve Bank of India’s policy meeting coming up next month. Any unexpected hawkish remarks—especially after the European Central Bank hinted at pausing its easing cycle last week—could act as a major trigger. Therefore, maintaining hedged positions or having a clear risk management plan will be essential for navigating the next market moves. Create your live VT Markets account and start trading now.Gold prices in Saudi Arabia have recently increased, according to gathered information.
Gold prices in Saudi Arabia rose on Wednesday, according to FXStreet’s data. The price of gold hit 586.10 Saudi Riyals per gram, up from 573.49 SAR the day before.
The cost for a tola of gold went up to 6,836.16 SAR from 6,689.08 SAR the previous day. Here are other key prices: 5,861.00 SAR for 10 grams and 18,229.27 SAR for a troy ounce.
Price Calculation Methodology
FXStreet calculates these prices by converting international rates into local currency, updating them to reflect market conditions. The prices are for reference only, and local variations may occur. Gold is often seen as a good store of value and a means of exchange, particularly during economic uncertainty. It is favored as a hedge against inflation and currency decline because it isn’t tied to any specific government or issuer. Central banks are significant buyers of gold. In 2022, they increased their reserves by 1,136 tonnes. Countries like China, India, and Turkey continue to grow their gold stockpiles. Gold prices usually decrease when the US dollar and US Treasuries strengthen. Additionally, geopolitical tensions and interest rates can impact gold prices.Global Economic Outlook
Gold’s rise to SAR 586.10 per gram indicates a shift towards safe-haven assets. This change points to increasing concerns about the global economy in the first half of 2026. Traders should recognize this as part of a broader trend rather than just a daily occurrence. This trend is largely driven by expectations that the US Federal Reserve will start lowering interest rates by the second quarter. After a prolonged period of persistent core inflation in 2025, recent data indicates a cooling trend that might allow the central bank to ease its policies. A weaker US dollar, which has fallen nearly 2% against other currencies since the start of the year, could also boost gold prices. Strong support from institutional investors plays a significant role as well. Following central banks’ record purchases in 2022, recent data shows this trend continued into 2025, with emerging market banks adding around 900 tonnes to their reserves. This steady demand helps maintain a solid price floor for gold and limits potential losses for the precious metal. For derivative traders, this market environment suggests that taking long positions through call options on gold futures or major gold ETFs could be a wise strategy. Purchasing calls with expirations of three to six months allows traders to benefit from expected price increases due to shifts in monetary policy. A bull call spread could also be employed to reduce the entry cost while managing risk. Create your live VT Markets account and start trading now.Recent data shows that gold prices in the Philippines have increased.
Gold prices in the Philippines rose on Wednesday, according to data from FXStreet. The price per gram increased to 9,277.47 Philippine Pesos (PHP) from 9,071.85 PHP the previous day.
The cost per tola went up to PHP 108,210.60, up from PHP 105,812.30. A troy ounce was priced at PHP 288,562.10. These prices reflect international rates adjusted for the local currency and are updated daily.
