The South Korea Consumer Sentiment Index increased to 110.8 in January, up from 109.9. This indicates a slight boost in how consumers feel about South Korea’s economy. In other economic news, the Bank of Japan decided to keep interest rates unchanged. The USD/CNY reference rate was set at 6.9929, down from 7.0019.

Gold Prices Surge

Gold prices have soared past $4,950 due to easing tensions between the US and EU. The NZD/USD pair rose above 0.5900 after New Zealand’s inflation surpassed expectations. In currency markets, the EUR/USD pair is currently eyeing the 1.1800 level, supported by a weaker US Dollar. Meanwhile, the GBP/USD is gaining strength, approaching 1.3500, thanks to pressure on the USD. Gold’s rise is backed by safe-haven demand and possible changes in Federal Reserve policies. In the cryptocurrency market, XRP remains above $1.90 despite some fluctuations. FXStreet offers in-depth analysis and data about financial markets. They aim to provide useful insights while emphasizing the risks involved in financial trading. All viewpoints in their articles are the authors’ own, and FXStreet does not guarantee error-free content.

US Dollar Trends

As of January 23, 2026, continuous selling of the US dollar remains a key trend, affecting other currencies. Traders might consider buying call options on major pairs like EUR/USD and GBP/USD to profit from this trend. Futures markets are currently predicting a 75% chance of a Federal Reserve rate cut by March, suggesting a downward path for the dollar. The substantial rise in gold, now above $4,950, indicates significant market concern, even as currencies reflect a risk-on mood. Although gold’s momentum might push prices higher, its overbought status raises the risk of a sharp price drop. Traders are using strangles—buying both a call and a put option—to take advantage of expected price swings without betting on a specific direction. We’re closely monitoring the Japanese yen as the Bank of Japan keeps rates steady after raising them in December 2025. This difference in policy with the easing Fed could strengthen the yen against the dollar. We expect USD/JPY to break below the 155 level, and buying put options on this pair could be a good way to position for this move. The slight improvement in consumer sentiment in South Korea adds to a picture of relative strength in Asian economies, suggesting that the Korean Won might perform well against the weakening US dollar. Historically, rising consumer confidence has often led to gains in the KOSPI 200 index, similar to trends observed during the 2021 recovery. Create your live VT Markets account and start trading now.

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