Brazil’s mid-month inflation rate stood at 0.2% in January, slightly under the anticipated 0.22%. This indicates a marginally slower rise in consumer prices during the period.<\/p>\n
The AUD\/USD reached a three-year high supported by increased Australian yields and a weakened US dollar. Meanwhile, the USD\/CAD fell to a six-month low ahead of critical decisions by the Fed and the Bank of Canada.<\/p>\n
Gold maintained a strong position near $5,100 per troy ounce, benefiting from continued US dollar struggles, trade concerns, and geopolitical tensions. Bitcoin stabilised near $88,000, following a 2% rise amid a winter storm affecting hashrate.<\/p>\n
EUR\/USD remained steady above the 1.1900 level due to decreased US dollar demand and market sentiment shifts. Similarly, GBP\/USD hit multi-month highs around 1.3750 as reports suggested increased trade tensions under President Trump.<\/p>\n
Meanwhile, the Axie Infinity gaming token surged 3%, continuing gains from earlier in the week as demand increased post the bAXS token announcement. US President Trump increased trade tensions with South Korea, impacting market dynamics as attention shifted to central bank decisions and Australian inflation data.<\/p>\n
Looking back at this time in 2025, we saw a market defined by a struggling US dollar driven by political trade fears. Today, on January 27, 2026, the environment has shifted significantly due to the Federal Reserve\u2019s determined policy stance. The Dollar Index (DXY) is now firm, recently trading around 103.5, a stark contrast to the weakness we experienced last year.<\/p>\n
The lower-than-expected Brazilian inflation of 0.2% in January 2025 provided temporary relief for emerging markets. However, we must now contend with fresh data showing Brazil’s IPCA-15 inflation for January 2026 has accelerated to 0.31%. This uptick suggests that inflationary pressures are not fully contained, and the central bank may need to remain vigilant.<\/p>\n
This renewed dollar strength has reshaped the foreign exchange landscape from what we saw in 2025. While we saw EUR\/USD push above 1.19 and GBP\/USD hit 1.3750 back then, these pairs are now trading much lower, near 1.08 and 1.27 respectively. This trend suggests that options strategies betting on further dollar resilience could be profitable in the coming weeks.<\/p>\n
The speculative enthusiasm from last year, which pushed Bitcoin towards $88,000, has also cooled considerably. With higher interest rates making cash more attractive, we’ve seen Bitcoin’s price consolidate closer to the $43,000 mark throughout early 2026. This signals a more cautious approach from traders compared to the risk-on environment of 2025.<\/p>\n
Similarly, the dramatic surge in gold that approached $5,100 an ounce last year appears to have been an anomaly driven by geopolitical tension and a weak dollar. Today, with the Fed\u2019s grip on inflation tightening liquidity, gold is trading in a more subdued range around $2,030. This normalization creates opportunities for traders using covered calls to generate income on existing positions.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" AUD\/USD hits 3-year high; gold strong near $5,100; inflation slows; markets watch Fed, BoC moves.<\/p>\n","protected":false},"author":62,"featured_media":16964,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40239","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\/40239","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=40239"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/40239\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16964"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=40239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=40239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=40239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}