The United States ISM Services PMI for January reached 53.8, surpassing the forecast of 53.5. This metric is crucial for understanding the economic health and growth in the services sector.<\/p>\n
Amid mixed US data, the US Dollar has strengthened due to the resolution of the government shutdown. Conversely, the Canadian Dollar has remained stable despite disappointment from ADP data.<\/p>\n
On the currency front, EUR\/USD is retracting to challenge the 1.1800 support as the US Dollar posts gains. Meanwhile, GBP\/USD is nearing daily lows of 1.3640 as it faces new selling pressure.<\/p>\n
In commodities, gold has fallen below $5,000 per ounce due to a stronger US Dollar. The decline is also supported by mixed movements in US Treasury yields.<\/p>\n
In the cryptocurrency market, Dogecoin is holding near $0.1000, facing a sell-off as retail activity decreases. Ripple has stabilised around $1.60 after a brief sell-off, influenced by market volatility.<\/p>\n
Several brokers offer competitive advantages in 2026, with insights provided on Forex, indices, and commodities trading. These brokers cater to a variety of needs, such as low spreads and high leverage, across regions like Mena, Latam, and Indonesia.<\/p>\n
The stronger-than-expected US ISM Services data, at 53.8, shows the American economy remains resilient. This report has pushed the US Dollar Index (DXY) to a six-month high of 105.50 today. Derivative traders should consider positioning for continued dollar strength against other major currencies.<\/p>\n
We are seeing gold fall below the key $5,000 level after the incredible bull run we experienced through most of 2025. With the US 10-year Treasury yield now holding firm at 4.75%, the pressure on non-yielding assets like gold is significant. Options traders might look at buying puts targeting the next support level around $4,850 per ounce.<\/p>\n
The Euro is struggling to hold the 1.1800 level as we head into tomorrow’s European Central Bank meeting. The market consensus is for a dovish hold, with policymakers unlikely to signal any hawkish turns given recent mixed economic data from the bloc. This outlook keeps downside pressure on the EUR\/USD, making call options look expensive.<\/p>\n
Similarly, the British Pound is fading towards 1.3640 ahead of the Bank of England’s decision this Thursday. With UK inflation data from last month still stubbornly high at 3.5%, the BoE is in a difficult position. The uncertainty creates an opportunity for traders to buy volatility using instruments like straddles on GBP\/USD.<\/p>\n
Beyond currencies, the notable weakness in assets like Dogecoin and the cooling of AI-related software stocks points to a broader risk-off sentiment. We see investors becoming more selective after the speculative rallies of last year. This environment could make buying protective puts on broad market indexes a prudent strategy for the weeks ahead.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" US Dollar strengthens amid upbeat PMI; gold dips, crypto wavers, while EUR\/USD and GBP\/USD retreat.<\/p>\n","protected":false},"author":62,"featured_media":16967,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-40956","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\/40956","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=40956"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/40956\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16967"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=40956"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=40956"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=40956"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}