**Market Movement on January 23, 2026** On January 23, 2026, various markets experienced significant changes. The US CFTC S&P 500 net positions fell from -$122.1K to -$818K. The EUR/USD rose above 1.1800, driven by rumors of yen intervention that impacted the dollar. Gold prices surged to $4,988, getting close to the important $5,000 mark. The GBP/USD hit a four-month high of 1.3600 due to a weaker US dollar. Bitcoin struggled, dropping below $90,000 because of ETF outflows and changes in policy. Swiss bank UBS is looking into Bitcoin and Ethereum offerings for some private clients. The Federal Reserve and Bank of Canada are expected to pause rate adjustments amid geopolitical issues and possible new leadership. FXStreet will keep providing market updates, but investors should do their own research before making any decisions. This information isn’t financial advice, and FXStreet isn’t responsible for any inaccuracies. **The Risks of Investing in Open Markets** Investing in open markets comes with risks, including the chance of total financial loss. Readers should be aware of these risks and conduct thorough research before getting involved in market activities. The US Dollar has been experiencing a strong sell-off. The Dollar Index (DXY) fell through the support level of 101.00, hitting a four-month low at 100.50, leading to increased volatility. Traders in derivatives might consider buying puts on dollar-based ETFs or selling call spreads if they believe the downward trend will continue. Gold approaching the $5,000 level reflects the dollar’s decline and falling real yields. The 10-year TIPS yield dropping to -0.15% supports this surge, marking a trend not seen since the inflation scare of 2025. We should explore long call option strategies on gold futures to benefit from this significant resistance break. The suspected intervention by Japan’s Ministry of Finance is causing extreme fluctuations in the USD/JPY pair, which is impacting all dollar pairs. We saw previous similar actions in late 2025 when the pair was over 150. The current drop below 138 suggests intervention may happen soon. Therefore, long-dated put options on USD/JPY may be worth considering, even with high premiums, to protect against a potential coordinated yen-strengthening effort. We’re witnessing notable strength in both EUR/USD and GBP/USD, with prices at 1.1800 and 1.3600 respectively. This trend isn’t only due to dollar weakness; recent UK inflation data increased to 3.1%, and German manufacturing PMI has finally risen to 50.2, indicating expansion. Buying call options on these pairs could be advantageous as we anticipate an upward trend leading up to the Fed meeting. The upcoming Federal Reserve meeting poses a significant risk, particularly with an expected pause following several rate cuts. Notably, net short positions on S&P 500 futures have seen a massive rise, reaching their most bearish level since the market downturn in late 2025. This disconnect from the currency markets suggests that buying inexpensive, out-of-the-money put options on the SPX could serve as a useful hedge for portfolios. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now