The Market Movement on January 23 2026 <\/p>\n
On January 23, 2026, there was a marked movement in various markets. The US CFTC S&P 500 net positions showed a decrease from $-122.1K to $-818K. <\/p>\n
EUR\/USD saw a rise above 1.1800 after rumours of yen intervention affected the dollar. Concurrently, gold prices skyrocketed to $4,988, nearing the key $5,000 mark. <\/p>\n
The GBP\/USD reached a four-month high of 1.3600 amid a weakening US dollar. Bitcoin price struggled, falling below $90,000, impacted by ETF outflows and policy changes. <\/p>\n
Swiss bank UBS is considering Bitcoin and Ethereum offerings for select private clients. The Fed and BoC are likely to pause rate adjustments amid geopolitical tensions and potential new appointments. <\/p>\n
FXStreet continues to provide market updates, although investors are encouraged to perform independent research before making decisions. The information shared does not constitute financial advice and FXStreet disclaims liability for inaccuracies. <\/p>\n
The Risks of Investing in Open Markets <\/p>\n
The publication reiterates that investing in open markets carries risks, including potential total financial losses. Readers should be mindful of risks and perform due diligence when engaging in market activities.<\/p>\n
The intense sell-off in the US Dollar is the central theme we need to trade. With the Dollar Index (DXY) crashing through the 101.00 support level to a four-month low of 100.50, we should expect heightened volatility. Derivative traders should consider buying puts on dollar-based ETFs or selling call spreads if they believe this downward momentum is overextended.<\/p>\n
Gold’s approach to the $5,000 psychological level is a direct result of the dollar’s collapse and falling real yields. The 10-year TIPS yield dipping to -0.15% provides a strong fundamental tailwind we haven’t seen since the inflation scare of 2025. We should be looking at long call option strategies on gold futures to capitalize on a break of this major resistance.<\/p>\n
The suspected ‘rate check’ by Japan’s Ministry of Finance is creating extreme volatility in USD\/JPY, which has cascaded across all dollar pairs. We saw similar jawboning back in late 2025 when the pair was above 150, but the current crash below 138 suggests actual intervention is imminent. This makes long-dated put options on USD\/JPY attractive, despite high premiums, as a hedge against a coordinated yen-strengthening move.<\/p>\n
We are seeing significant strength in EUR\/USD and GBP\/USD, pushing them to 1.1800 and 1.3600 respectively. This isn’t just dollar weakness; recent UK inflation data surprised to the upside at 3.1%, while German manufacturing PMI finally crossed back into expansionary territory at 50.2. We should consider buying call options on both pairs to ride this clear upward trend ahead of the Fed meeting.<\/p>\n
The upcoming Federal Reserve meeting is a major risk event, especially with their expected pause after a series of rate cuts. We must pay attention to the massive increase in net short positions on S&P 500 futures, now at their most bearish level since the market downturn in late 2025. This disconnect with the currency markets suggests we should be buying cheap, out-of-the-money put options on the SPX as a portfolio hedge.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" Markets shift: gold nears $5,000, GBP climbs, Bitcoin falls below $90K, Fed may pause rates.<\/p>\n","protected":false},"author":62,"featured_media":16960,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40038","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-ca\/wp-json\/wp\/v2\/posts\/40038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=40038"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/40038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16960"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=40038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=40038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=40038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}