The Eurozone HCOB Services PMI fell to 51.9 in January 2026, below the expected 52.8. Meanwhile, the GBP/USD climbed to a two-week high of around 1.3530, thanks to solid UK Retail Sales and preliminary PMIs. Gold prices approached a historic high, hitting $4,970 per troy ounce, with eyes set on the $5,000 mark. Bitcoin struggled to stay over $89,000 due to market challenges, while Ethereum and Ripple faced low demand and bearish trends.

Bank of Japan Policy

The Bank of Japan kept interest rates steady at 0.75%. This decision aims to support growth while targeting a 2% inflation rate. Tron (TRX) performed well, trading above $0.30, supported by positive on-chain and derivatives data. In 2026, top forex brokers are recommended for their low spreads, high leverage, and options for different trading needs, like Islamic accounts. These brokers serve areas such as Mena, Latam, and Indonesia, and detailed pros and cons are outlined. FXStreet reminds investors that market information is for informational purposes only. They emphasize the importance of personal research before making trade decisions. Trading in open markets carries risks, including the total loss of investment.

Strategic Currency Moves

The weaker Eurozone Services PMI suggests a chance for further euro decline. Buying put options on the EUR/USD serves as a hedge against the possible strengthening of the US dollar after its PMI release, continuing the trend of economic divergence noted in the second half of 2025. On the other hand, the UK’s strong retail and PMI data makes the pound appealing, especially against the struggling euro. We are investigating derivatives that can take advantage of this divergence, like shorting EUR/GBP futures or purchasing call options on GBP/USD. This unexpected strength in the UK is a refreshing change from the stagnation seen in early 2025 when inflation was still above the Bank of England’s target. Gold’s pause near the critical $5,000 mark signals that a significant price movement is on the horizon, opening up opportunities for volatility trades. We are considering long straddles—buying both a call and a put option—to profit from a large price swing in either direction. The ongoing trade war, which drove global shipping container costs up 12% in late 2025, continues to boost safe-haven demand. For digital assets, the bearish trends for Bitcoin and Ethereum indicate that protecting against declines is wise. Bitcoin’s difficulty in staying above $89,000 suggests that buying puts or taking short futures positions may be a sensible strategy in the coming weeks. This weak institutional demand marks a significant change from the strong inflows seen after the spot ETF approvals in 2024. Create your live VT Markets account and start trading now.

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