The EUR/USD pair is trading close to 1.1650, boosted by hopes that the Federal Reserve will keep interest rates unchanged. This comes after the US jobs growth was slower than expected. Nonfarm Payrolls increased by just 50,000 in December, falling short of the 60,000 forecast. However, the US Unemployment Rate decreased to 4.4% from 4.6%, and Average Hourly Earnings rose by 3.8% year-on-year. Richmond Fed President Tom Barkin described the job growth as modest but stable, while also indicating uncertainty in future labor market trends. The Euro may weaken further as inflation in the Eurozone eases, with the current headline inflation at 2.0% and core inflation just below forecasts at 2.3%. Moreover, European countries are discussing strengthening Arctic security amid rising geopolitical tensions.

Role Of The Euro

The Euro is the currency for 20 EU countries and accounted for 31% of global foreign exchange transactions in 2022. The ECB, based in Frankfurt, manages monetary policy in the Eurozone and affects the Euro’s value. Key economic indicators like inflation, GDP, and trade balances play a vital role in the Euro’s strength. Economic reports from Germany, France, Italy, and Spain are particularly influential due to their significant share in the Eurozone economy. Currently, the EUR/USD rise to 1.1650 seems driven by expectations of a dovish Federal Reserve. The market reacted to the weak US jobs report, with futures indicating a nearly 75% chance that the Fed will keep interest rates steady this month. This quick response has led to a decline in the US Dollar across the board. However, traders should stay cautious, as the underlying US data is not as weak as it seems. The unemployment rate has dropped to 4.4% and wage growth has sped up to 3.8%. These are signs of a strong labor market that might keep inflation high. We saw a similar issue in the third quarter of 2025, when one weak jobs report led to a dollar sell-off that quickly reversed when inflation data was unexpectedly high. On the Euro side, its fundamental support is decreasing, making this rally look unstable. With Eurozone inflation now at the ECB’s target of 2.0%, the argument for holding high interest rates is weakening. Just a year ago, in early 2025, the ECB was clearly hawkish with core inflation above 4.5%; now that pressure has eased.

Outlook And Strategies

Given the mixed signals from both economies, we anticipate rising volatility in the coming weeks. A smart strategy would be to buy options that benefit from significant price movements, like a straddle, rather than simply betting on direction. The current market uncertainty is not fully reflected in options prices, presenting an opportunity ahead of the next central bank meetings. We are also keeping an eye on geopolitical issues related to Greenland, which could lead to sudden, unexpected market moves. Renewed discussions about US ownership from President Trump and possible NATO military activity in the Arctic could strain relations between the US and Europe. This uncertainty adds another layer of complexity, confirming that preparing for significant price changes in either direction is a wise strategy. Create your live VT Markets account and start trading now.

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Gold prices (XAU/USD) have skyrocketed to a record high of around $4,555. This surge comes as more investors seek safe-haven assets and anticipate a US interest rate cut. The upcoming release of the US Consumer Price Index (CPI) inflation data is expected to influence the market even more. There have been rising geopolitical tensions in the US, including possible military actions in Iran due to unrest. Additionally, the UK and Germany are thinking about increasing their military presence in Greenland for Arctic security, boosting gold’s attractiveness as a safe-haven asset. Recent US economic reports showed a 50,000 increase in Nonfarm Payrolls for December, falling short of expectations and fueling speculation about Fed interest rate cuts.

Gold As A Safe Haven Asset

Gold has long been valued as a reliable store of wealth and is often sought after during times of global uncertainty. Central banks from emerging markets like China, India, and Turkey are significant buyers, enhancing their reserves to strengthen their economies. Typically, gold prices move in opposition to the US Dollar and other riskier assets. Several factors affect gold prices, including geopolitical concerns and monetary policies. Lower interest rates generally make gold more appealing by reducing its opportunity cost. A weak US Dollar tends to boost gold prices as well. Now that gold has reached a high of $4,555, we’re seeing option market volatility spike to levels not seen since the banking issues of 2024. Traders should get ready for big price swings, and buying options outright could be quite costly. The market is clearly factoring in both geopolitical worries and expectations of upcoming Fed rate cuts. The rising tensions with Iran are a major factor, leading to a 15% increase in shipping insurance costs in the Strait of Hormuz last week. This ongoing demand for safe-haven assets is likely to continue. To maintain long exposure while controlling risk, traders may consider using bull call spreads.

Expectations Ahead Of CPI Data

The weak nonfarm payroll report from last Friday has boosted market expectations, with Fed funds futures now reflecting an 85% chance of a rate cut by March. However, all eyes are on tomorrow’s CPI data, with a core reading expected to be around 2.8%. Any significant change from this estimate could lead to major market movements, making long straddles a sensible strategy for those anticipating increased volatility. This gold rally is supported by sustained buying from central banks, which continued in the last quarter of 2025 with a net purchase of 95 tonnes. This consistent demand is evident in the derivatives market, where open interest for the February $4,600 calls increased by over 40% in just two days, indicating strong belief in potential further increases. However, caution is necessary, as the metal is currently overbought and could face a sharp decline. We recall the significant gold sell-off in mid-2024, triggered by unexpectedly high inflation data, which caused a quick reversal of rate cut expectations. Thus, traders holding long positions might want to consider buying protective puts or reducing exposure ahead of tomorrow’s CPI release. Create your live VT Markets account and start trading now.

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The USD/JPY pair rose to around 158.05 in the early Asian session on Monday. This increase followed news that Japan’s Prime Minister, Sanae Takaichi, is thinking about calling a snap election for mid-February. This potential move is impacting the value of the Japanese Yen. The US Bureau of Labor Statistics reported fewer jobs added in December than expected, with only 50,000 new Nonfarm Payrolls. This is down from a revised 56,000 in November and lower than the predicted 60,000, which might influence decisions regarding interest rates by the US Federal Reserve.

US Economic Indicators

The Unemployment Rate in the US fell to 4.4% in December, down from 4.6% in November. Additionally, Average Hourly Earnings rose to 3.8% year-on-year from 3.6%. Futures for Fed funds show a strong chance that the US central bank will keep interest rates steady in the upcoming meeting. Several factors influence the Yen’s value, including the Bank of Japan’s policies, differences in bond yields between Japan and the US, and how traders feel about risk. The Yen, typically seen as a safe-haven currency, can gain strength in times of market uncertainty as investors look for stable options. About a year ago, political uncertainty regarding a potential snap election in Japan pushed the USD/JPY pair above 158, even amid weaker US jobs data. This highlights the Yen’s sensitivity to domestic political events. Currently, the political environment in Japan has stabilized since the election in early 2025. Right now, the USD/JPY pair is trading much higher, approaching the 165 level, supported by stronger-than-expected US economic data. The latest Nonfarm Payrolls report for December 2025 showed an impressive gain of 210,000 jobs, far surpassing expectations and dampening hopes for aggressive rate cuts by the Federal Reserve. This has helped keep the US Dollar strong against major currencies, including the Yen.

Interest Rate Implications And Trader Strategies

The key issue remains the interest rate gap between the US and Japan, although it has started to narrow. The current US 10-year Treasury yield is about 3.8%, while the yield on Japan’s 10-year bond has risen to 1.2% as the Bank of Japan gradually moves away from its ultra-loose policy. This shift in Japan’s policy is a crucial factor to monitor in the coming weeks. For derivative traders, even though the spot price is high, the underlying support from the yield gap is slowly diminishing. Buying JPY call options (or USD/JPY put options) with a three-to-six-month expiration could be a smart way to prepare for a possible correction. This strategy allows traders to take part in a Yen rebound while limiting potential losses if the Dollar remains strong. The common carry trade—borrowing Yen to invest in higher-yielding Dollars—is still viable but increasingly risky due to potential sharp reversals. Using derivatives to hedge these positions, such as through forward contracts or options, is now more critical than it was a year ago. While the cost of this insurance is rising, a sudden policy change by the Bank of Japan could wipe out carry trade gains quickly. It is also important to consider global risk sentiment since the Yen often appreciates during market stress. Ongoing worries about European industrial output and fluctuations in commodity markets could trigger a rush to safety, causing the Yen to strengthen rapidly. Therefore, holding some out-of-the-money JPY calls can provide protection against unexpected global events. Create your live VT Markets account and start trading now.

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Japan’s Prime Minister Sanae Takaichi might call for an early general election, possibly in February. This would be her first time facing voters since she became Japan’s first female prime minister in October. She aims to take advantage of her strong public support. The USD/JPY currency pair is currently at 158.05, showing a slight increase of 0.11% today. The Japanese Yen is widely traded and is affected by Japan’s economic performance and specifically by the Bank of Japan’s policies, bond yields, and traders’ risk perception.

Currency Control By The Bank Of Japan

The Bank of Japan (BoJ) sometimes steps in to control the Yen’s value, though such interventions are rare due to political implications. From 2013 to 2024, the Yen weakened as the BoJ maintained its very loose monetary policy. However, the Yen has recently gained support as the BoJ begins to adjust this approach. Historically, the difference between Japanese and US bond yields has favored the US Dollar, but recent changes are reducing this gap. During unstable market conditions, the Yen is viewed as a safe-haven currency, often strengthening. A potential election in February brings uncertainty, likely leading to increased volatility in the USD/JPY currency pair in the coming weeks. With the Yen currently weak at 158.05, political instability could lead to larger market movements. This situation makes holding basic spot positions risky. To prepare, we should think about buying options to benefit from potential price swings, no matter which direction they go. Using strategies like straddles or strangles can allow us to profit from the increased volatility as we approach the possible February vote. This approach limits our risk to the cost of the options while offering substantial potential for profit from significant market shifts.

Potential Election Outcomes And Impact

If Prime Minister Takaichi wins decisively, it could encourage the Bank of Japan to speed up its policy changes. Core inflation has stayed above the BoJ’s 2% target throughout 2025, raising the need for more rate increases. A strong election result could provide the central bank with the political backing needed to act, which would support the Yen. Conversely, a weak election outcome could create political deadlock, delaying any decisive actions from the BoJ. The significant interest rate difference between the US and Japan, which has kept the Yen weak for years, would likely continue. After the BoJ ended its negative interest rate policy in spring 2024, the cautious approach suggests that any political excuse could stop further tightening. We should also keep an eye on possible currency interventions by the Ministry of Finance, especially with the dollar-yen rate this elevated. In 2024, officials spent over 9 trillion yen to support the currency when it weakened past similar levels. The combination of election uncertainty and a Yen nearing 160 could trigger similar government action. Create your live VT Markets account and start trading now.

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The S&P 500 saw a pullback after new data was released, with the tech sector experiencing more volatility than the overall market. Some clients took advantage of this dip, resulting in one of the best trading days of 2026 so far. Although the QQQ index surpassed $626, the cautious trading before the market closed looked similar to midweek patterns.

Precious Metals Hold Their Ground

Precious metals gained strength on Thursday as they remained steady at key support levels. The US Dollar rose due to increased short-term yields amid speculation about potential rate cuts based on jobs data. In foreign exchange, the EUR/USD fell to multi-week lows between 1.1625 and 1.1620, impacted by a strengthening US Dollar. The GBP/USD also faced challenges, dropping below 1.3400 and nearing its 200-day simple moving average due to the Dollar’s strength. Gold remained strong, testing yearly highs close to $4,500 per ounce. This rise was supported by risk-averse sentiment, even with a robust Dollar. Looking ahead, US CPI data could influence the Dollar’s impact on the market. Meanwhile, XRP is still under pressure, with weak retail demand causing its futures Open Interest to decrease to $4.15 billion. There are reports of possible early elections in Japan, which might affect the USD/JPY exchange rate. The S&P 500’s strong rebound after the volatile jobs data shows that buying dips can be rewarding. On Friday, the index successfully reclaimed the 6,000 level, marking the best trading day of the year so far. This surge was fueled by a December jobs report that revealed a healthy addition of 210,000 jobs, along with a welcome slowdown in wage growth, which supports a more accommodating Federal Reserve.

Market Strategies After Data Release

For those trading derivatives, selling out-of-the-money puts on major indices like the SPX or NDX could be an effective strategy to earn premium, as the market seems eager to support any pullbacks. The CBOE Volatility Index (VIX) highlighted this situation, spiking to 18 during the data release but falling back below 15 by the close, suggesting that fear quickly diminished. We can expect ongoing volatility, making options strategies appealing. The market is now factoring in Fed rate cuts, with futures indicating over a 70% chance of a first cut by the May 2026 meeting. This expectation is driving the current rally, allowing the market to overlook some of the narrower hiring trends mentioned by Fed officials. Traders should get ready for this positive trend to continue, especially if upcoming data shows a slowdown in inflation. Looking ahead, Tuesday’s US CPI report is the next big event that will either support or challenge this optimistic outlook. With core CPI ending 2025 at an annual rate of 3.5%, further signs of disinflation could boost the equity rally and pose challenges for the recently strong US dollar. We should watch for significant market movement when this data is released. Despite the rally, gold is nearing its yearly highs around $4,500, indicating that traders are still hedging against risks. This strength, even amid a rising dollar and bond yields, is likely linked to geopolitical tensions related to potential US-EU trade conflicts and NATO discussions. Buying call options on gold or related ETFs can be a smart hedge against any unexpected negative developments in the coming weeks. Create your live VT Markets account and start trading now.

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During the week, the market was uncertain, even though people hoped for more clarity on jobs, tariffs, and interest rates. December payrolls added 50,000 jobs, and unemployment dropped to 4.4%. This suggests that the Federal Reserve is likely to keep its current policy. The expected decision on tariffs has been postponed, indicating a more careful approach ahead. Stocks gained ground, with small-cap stocks rising more than 5% due to a strong short squeeze, while sectors shifted based on moderate growth trends. In the bond market, long-term bonds performed well, leading to a flatter yield curve as interest in immediate rate cuts decreased; 2-year yields rose slightly, indicating that a rate cut in January is unlikely. The dollar hit a one-month high, and gold prices increased, close to record levels, reflecting confidence in financial policies. Oil prices went up due to tensions with Iran, adding a risk premium. Bitcoin stayed steady, showing a phase of consolidation amid shifts in assets and selectivity.

Productivity As A Key US Economic Driver

Productivity, rather than payrolls, is becoming a major driver of the US economy. Business productivity surged by 4.9% in Q3, with little change in labor input, highlighting growth through efficiency. Hourly compensation growth slowed to 3.2%, contributing to a disinflationary environment. Thus, productivity, rather than workforce growth, is becoming more crucial for GDP growth, which could lead to policy changes. Global stocks are expected to increase by 11% in the next 12 months, but with less momentum than in previous years. Valuations are still historically high in many regions, implying that returns may depend more on profit growth than on rising valuations. Investors can continue to benefit from diversifying across styles, sectors, and regions, particularly with factors like growth and value in 2026. The market clearly indicates that broad index bets are risky right now. The high dispersion shows that specific stocks are moving more than the overall market. The CBOE Implied Correlation Index has dropped to its lowest level since before the 2024 election cycle, confirming that this is a good time for stock picking.

Relative Value Trades And Market Conditions

Now is the time for relative value trades, especially as we see a shift away from last year’s top performers. Last week, the Russell 2000 outperformed the Nasdaq 100 by over six percentage points, its largest difference in over a year. Betting on small-cap strength against weak mega-cap tech stocks seems like the best way to capitalize on this shift. The Federal Reserve is unlikely to take action soon, so it’s wise to avoid betting against the stable end of the yield curve. Fed funds futures are now pricing in less than a 10% chance for a rate cut before March but still expect two cuts by the end of 2026. This suggests selling volatility on short-term rates while anticipating that long-term rates will react to growth data. In this setting, volatility itself has become a tradeable asset. The VIX term structure reflects this, with the front-month contract closing around 13, while the six-month contract is above 17. Selling near-term options to collect premiums while buying longer-term protection looks sensible. We should also focus on commodities, as they are moving independently. Gold futures rose by 1.5% last week, even as the Dollar Index climbed towards 104.50, showing its strength is separate. Meanwhile, Brent crude’s front-month contract trades at a $3 premium to the six-month contract, reflecting urgent geopolitical concerns that might be best addressed with short-term call options. Create your live VT Markets account and start trading now.

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Lennar Corporation’s stock jumped over 8.5% due to news about President Trump’s mortgage bond plan. This increase prompts us to analyze the stock’s chart, which shows an inverse head and shoulders pattern.

Bullish Stock Patterns

This pattern is a strong bullish signal, developed gradually over time. The neckline connects price movements starting from October 18, 2024, through significant highs in October and September of the previous year, and into November. A clear neckline enhances the pattern’s quality and potential. If the stock price breaks and stays above the neckline, it could rise by over 50%, based on the pattern’s analysis. Lennar Corporation is a major U.S. homebuilder, drawing attention due to its influence, especially in light of macroeconomic news affecting the housing market. However, no pattern is perfect, and it’s crucial to confirm the setup. Managing risk is vital to protect your investment. Patterns can fail, and market conditions may change, so traders must balance confidence with caution. Following Lennar’s recent 8.5% jump, we closely monitor its price action as we enter the week of January 12, 2026. This increase aligns with renewed hopes for a mortgage bond plan that could decrease borrowing costs for homebuyers. This fundamental news is now influencing a significant long-term technical pattern that has formed over the past year.

Long-Term Technical Analysis

We’ve identified a clear inverse head and shoulders pattern on the chart, established since the lows of 2024. The neckline links the highs from October 2024 and various peaks from last year’s 2025, marking a key resistance level. A confirmed break above this level could lead to more than 50% upside from where the stock breaks out. Recent economic data supports the potential breakout. The national average for a 30-year fixed mortgage has decreased from around 6.5% in the fourth quarter of 2025 to 6.2%, in anticipation of the new policy. Additionally, last week’s homebuilder sentiment index unexpectedly rose to 52, crossing the important 50-point mark for the first time in six months, indicating industry optimism. For derivative traders, this setup encourages preparing for a potential breakout in the coming weeks. We are considering out-of-the-money call options, particularly with March and April 2026 expirations, which offer leverage if the stock rallies. A bull call spread may also be a good strategy to define risk while capturing some of the expected gains. Staying disciplined is key, as no pattern is foolproof. The critical trigger is not just a brief touch of the neckline but a decisive daily close above it, ideally with continued buying the following day. A quick rejection from this area would invalidate the immediate bullish outlook and indicate it’s too soon to make directional trades. We should also be aware of the increased implied volatility following the stock’s recent strong movement, which raises options prices. We will wait for a confirmed breakout before considering this premium. If the price fails at the neckline, it’s a clear signal to step back and protect your investment. Create your live VT Markets account and start trading now.

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General Motors (GM) has reported a $7.1 billion loss for the fourth quarter, with $6 billion linked to its electric vehicle (EV) business. This news comes at a critical point for GM’s stock. Recently, it reached $85, a level that has acted as a barrier since 2017. This resistance has prevented further gains in the past, with failed attempts in 2018 and between 2020-2021. Currently, GM’s stock is at $83.36 before the market opens. This write-down could push the stock down towards $66, a level that has previously supported prices. The large loss follows a drop in demand after federal tax credits ended in September. This situation forced GM to cut production and renegotiate pricey contracts with suppliers. Of the total charges, $4.2 billion is cash meant for settlements and cancellations. GM expects more losses by 2026, but they anticipate these will be smaller. The upward resistance trendline suggests that GM may experience a downturn after this negative announcement. The $66 level is a reasonable target for a decline, based on past support and the current chart. The $7.1 billion write-down from GM last year impacted the stock as the charts predicted. The stock’s failure to break past $85 was a strong sign, resulting in a drop. Now, with the price around $68, we will see if it holds at the crucial $66 support level. GM’s electric vehicle strategy faces ongoing challenges. Recent industry reports show that the U.S. EV market share dropped to 7.5% in the fourth quarter of 2025, down from over 9% earlier in the same year. This demand issue that forced GM’s decisions is not likely to resolve quickly. Looking ahead, GM’s official earnings report for the fourth quarter will be out in a few weeks, and we’re noticing an increase in implied volatility. This implies that options traders expect significant price swings. Investors should be prepared for this catalyst, which could either reinforce the bearish trend or spark a short-covering rally. For those expecting further bad news, buying put options is a straightforward way to bet against the stock dropping below the $66 support. A clear break below this level, especially if earnings fall short, could lead to a decline not seen since 2024. Using put spreads can help reduce the trade’s cost in light of rising volatility. Conversely, some negativity from last year may already be factored into the stock price. If management shares an unexpectedly positive outlook for 2026, we could see a rapid increase in prices, making short-term call options appealing for a speculative rebound. Additionally, strategies like iron condors could be employed to profit from a decrease in volatility post-earnings announcement.

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The Mosaic Company (MOS), a key player in agriculture known for potash and phosphates, saw its shares drop nearly 2% on Friday. This decline followed a “Sell” rating from analysts who raised concerns about negative cash flow. On Thursday, MOS shares rose above a crucial resistance trendline at $26.48, a level that has been important since November 2024. However, the lack of momentum on Friday pushed the shares back below this trendline. This is the third time MOS has failed to break through the $26.48 barrier. To see any upward movement, the next goals are $27.85 and $28.90. For bullish traders, it’s vital to keep MOS above the $25.39 support level. If this level fails, the price could fall back to December lows of $23.32. We are witnessing a classic failed breakout as MOS could not stay above the $26.48 level. The recent “Sell” rating poses a significant challenge, making it appealing for short-term betting on further declines. Concerns about negative cash flow aren’t new, but they are clearly affecting market sentiment now. Traders expecting a decline might consider buying put options with a strike price below the immediate $25.39 support. If that support breaks, we could see a quick drop to the December 2025 lows of $23.32, which would make those puts profitable. This view is backed by recent data showing a 5% drop in phosphate rock prices from North Africa in the fourth quarter of 2025, continuing a weak trend since last year. On the other hand, bullish traders may view the dip as a buying opportunity, though patience is key. Purchasing call options now is risky until the stock proves it can maintain the $25.39 support. A strong bounce from that level, combined with increased trading volume, would signal that buyers are re-entering the market. If MOS can reclaim and remain above the $26.48 trendline, call options targeting $28.00 or $29.00 would become more appealing. We remember how the stock surged in 2022 due to supply constraints, but the situation is different today. A recent report from a Brazilian agricultural cooperative indicated higher-than-expected domestic fertilizer inventories, which could limit significant price hikes soon. The repeated failures to break resistance suggest that implied volatility may increase as the stock gets squeezed between key levels. Selling covered calls against an existing stock position could be a smart way to generate income while you wait to see if the stock can finally overcome its overhead resistance.

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EUR/USD closed the week around 1.1640, down 0.7% as the US Dollar performed better. Although Eurozone Retail Sales were better than expected, the Euro couldn’t shift the focus from the influence of the US market. US economic data was mixed. December’s Nonfarm Payrolls added only 50,000 jobs, which was below the anticipated 60,000. Although the US unemployment rate fell from 4.6% to 4.4%, housing data showed weakness with declines in Building Permits and Housing Starts.

Eurozone and US Economic Indicators

In the Eurozone, Retail Sales rose by 0.2% in November. German Industrial Production exceeded expectations, but the trade balance decreased due to lower exports. Next week will feature speeches from central bank officials, investor confidence indices, and inflation data from both Europe and the US. The Euro fell against many currencies, ending 0.78% lower against the USD, with mixed results against others. Technical analysis suggests a downward trend for EUR/USD, with important support at 1.1600 and resistance at 1.1700. The Euro remains weak due to US economic factors, and upcoming indicators may further impact its movement. The US Dollar remains dominant, pushing EUR/USD below key technical levels, including the 50-day and 100-day moving averages. With the pair closing near 1.1640, the trend appears to be leaning downwards. Attention is now on forthcoming inflation data from both the US and Eurozone to validate this direction.

Options Strategies and Market Volatility

Given the mixed signals from last month’s US jobs report and major inflation releases on the way, increased market volatility is likely. We should consider using options strategies that can benefit from sharp price changes, such as straddles or strangles, focused around the 1.1600 level. This strategy allows us to profit from significant movements in either direction once the new inflation data is released. Looking back to late 2025, core inflation remained stubbornly high, with US Core CPI at about 3.9% year-over-year, well above the Fed’s target. If this week’s US CPI figures are higher than expected, it could challenge the market’s current expectation of 50 basis points in Fed rate cuts this year. This situation may strengthen the dollar further, putting pressure on the 1.1565 support level. On the other hand, we need to watch the European Central Bank closely. Recent Harmonized Index of Consumer Prices (HICP) data from the Eurozone showed a flash estimate of 2.9% in December 2025, up from November’s 2.4%, indicating inflation isn’t completely under control. Any hawkish comments from ECB speakers this week could help support the Euro, especially if US inflation data comes in lower than expected. For traders expecting a continued downward trend, buying put options with a strike price below 1.1600 could be a straightforward way to play a break of this psychological support. On the contrary, purchasing inexpensive out-of-the-money call options above the 1.1730 resistance offers a cost-effective bet on a significant upside surprise, possibly triggered by unexpectedly weak US CPI figures that heighten Fed rate cut expectations. Implied volatility for EUR/USD options is likely to rise as we approach this week’s data releases. Traders who believe that the market is overestimating potential price swings could consider strategies like iron condors to sell volatility. This approach would profit if the pair remains within a relatively narrow range after the economic numbers are announced. Create your live VT Markets account and start trading now.

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