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Global markets opened the new year with diverging signals as geopolitical developments, macroeconomic data and central bank communication set the tone for trading. In its latest market outlook, XM highlighted how events in Venezuela are weighing on oil prices while simultaneously boosting demand for gold, as investors reassess risk and seek traditional safe havens.
According to XM, uncertainty surrounding Venezuela’s political and economic trajectory has added pressure to crude markets, amplifying concerns about supply disruptions and policy unpredictability. At the same time, gold has benefited from heightened risk aversion, reinforcing its role as a defensive asset during periods of geopolitical stress.
XM noted that the US dollar has started the year “in a good mood,” supported by resilient US economic data and expectations that interest rates may remain higher for longer. This strength has influenced currency markets broadly, keeping pressure on risk-sensitive assets while underpinning dollar-denominated trades.
In contrast, cryptocurrencies have shown early signs of stabilization after a volatile period. While still sensitive to macro conditions and liquidity expectations, XM observed that digital assets are beginning the year with tentative momentum, suggesting renewed interest among investors willing to reengage with higher-risk segments of the market.
The week ahead is set to be data-heavy, beginning with the ISM manufacturing survey, a closely watched indicator of US industrial activity. XM emphasized that the survey will help shape expectations for growth and inflation trends early in the year.
Attention is also expected to intensify around Federal Reserve communication, with multiple policymakers scheduled to speak ahead of Friday’s US Nonfarm Payrolls (NFP) report. Together, these events are likely to influence rate expectations, bond yields and cross-asset volatility.
XM provides traders with access to global markets across forex, commodities, indices, stocks and cryptocurrencies, supported by regular market analysis and educational content.
The firm positions its research updates as tools to help traders navigate complex macro environments shaped by geopolitics, data releases and central bank policy.
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