In January, the United States reported that 1-year consumer inflation expectations were lower than anticipated. The actual rate was 4%, compared to the forecasted 4.2%.<\/p>\n
The EUR\/USD displayed robust performance, surging above the 1.1800 mark amid Yen intervention rumours. Similarly, the GBP\/USD climbed to a four-month high of 1.3600 as the Dollar’s value decreased.<\/p>\n
Gold prices approached $5,000 per troy ounce as investors sought safe-haven assets amidst a softer US Dollar. Meanwhile, Swiss bank UBS Group AG considered offering Bitcoin and Ethereum services to select private clients in Switzerland.<\/p>\n
The upcoming week is anticipated to be influenced by the Fed and BoC meetings amid geopolitical events. Bitcoin faced challenges, dropping below $90,000, influenced by market volatility and Trump’s speech on tariffs.<\/p>\n
Various brokerage guides for 2026 highlighted top-performing brokers across regions and trading needs. This includes best forex brokers, brokers offering Islamic and swap-free accounts, and those providing high leverage and the MetaTrader 4 platform.<\/p>\n
FXStreet emphasises that the provided information is for informational purposes and not a recommendation for investment. It stresses the importance of conducting thorough research due to the associated risks with open market investments.<\/p>\n
The latest consumer inflation expectation of 4% is a significant development, coming in below forecasts and reinforcing a disinflationary trend. This gives the Federal Reserve more room to consider pausing its tightening cycle or even signaling future rate cuts. We must now position for a more dovish central bank in the coming weeks.<\/p>\n
Consequently, we are seeing intense selling pressure on the US Dollar, a trend that is likely to continue. The CME’s FedWatch tool is now pricing in over a 70% chance of a rate cut by the March meeting, fueling this dollar decline. Options strategies like buying EUR\/USD calls or USD\/JPY puts could be effective ways to play this sustained weakness.<\/p>\n
Adding to the dollar’s woes are strong rumors of intervention from Japan’s Ministry of Finance to strengthen the Yen. We saw similar warnings back in 2025 when the USD\/JPY pair neared 165, which preceded direct market action. This threat of intervention creates a clear ceiling for USD\/JPY and a floor for the Yen.<\/p>\n
Gold is a primary beneficiary of this environment, breaking records as it approaches the $5,000 per ounce level. A weaker dollar makes gold cheaper for foreign buyers, and the prospect of lower interest rates reduces the opportunity cost of holding the non-yielding metal. Long positions in gold futures seem like a direct way to ride this momentum.<\/p>\n
This dollar sell-off is likely amplified by market positioning, as Commitment of Traders data from late 2025 showed a heavily crowded long dollar trade. As these positions are unwound, the selling pressure can feed on itself. Derivative traders should be positioned for continued dollar weakness and a spike in currency volatility.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Inflation dips, Dollar weakens; EUR\/USD and GBP\/USD rise, gold nears $5,000, crypto remains volatile.<\/p>\n","protected":false},"author":62,"featured_media":16963,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40025","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40025","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/comments?post=40025"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/posts\/40025\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media\/16963"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/media?parent=40025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/categories?post=40025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-asia\/wp-json\/wp\/v2\/tags?post=40025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}