EUR/USD trades above 1.1800 with positive momentum and modest gains during Asian hours
The EUR/USD pair is currently trading near a flat nine-day Exponential Moving Average (EMA), while the 50-day EMA is rising, indicating a positive trend. The 14-day Relative Strength Index (RSI) is at 54, which shows that bullish momentum is growing. If the price drops below the nine-day EMA at 1.1822, it may fall to the 50-day EMA around 1.1746. Right now, the pair is around 1.1820 during Asian trading hours, and if the RSI goes above 60, it could signal stronger bullish control.
The daily chart analysis shows that the pair remains on an upward trend by staying above the 50-day EMA. The short-term average is above the medium-term average, which supports this trend. If it breaks above the nine-day EMA at 1.1822, it may gain more ground toward 1.2082, the highest point since June 2021. On the other hand, a drop below the short-term average could shift focus to lower support levels, including a three-month low of 1.1578 from January.
Today, the Euro has fluctuated against major currencies, standing strong against the British Pound. The percentage change for the EUR against the USD is -0.02%. A heat map shows these changes, with the Euro showing small gains or losses against various currencies.
Currently, the EUR/USD pair is balanced, trading near 1.1820. The flat nine-day average indicates consolidation, while the rising 50-day average at 1.1746 acts as a support level. This suggests a slight upward trend, but traders should be ready for sideways movement before a significant breakout.
Recent economic data supports a stronger Euro, hinting at a possible upward move. The latest Eurozone inflation figures for January 2026 show a persistent 2.8% year-over-year rate, which is slightly above expectations. This has caused the European Central Bank to adopt a more hawkish stance. In contrast, the U.S. consumer price index has moderated to 3.0%, suggesting that the Federal Reserve might be close to easing its policies.
Given this mix of mild bullish sentiment and technical consolidation, a bull call spread could be a good strategy. You might consider buying a call option with a strike price just above the current level, like 1.1850, while simultaneously selling a call with a higher strike, such as 1.2000, for the same expiration date. This strategy limits your risk and allows you to profit from a gradual rise toward the 1.2082 area.
It’s important to remember the price action from the second half of 2025, where similar rallies stalled due to a lack of strong economic support. The sharp decline from the peak in July 2025 is a reminder that these levels can attract sellers. This past resistance emphasizes the importance of using defined-risk option strategies rather than holding unhedged long positions.
If you’re worried about a potential drop below the key level of 1.1822, buying put options can act as effective insurance. A break of this support level would first target the 50-day average at 1.1746, with the possibility of a deeper slide toward the January low of 1.1578. Purchasing puts with a strike around 1.1700 is a cost-effective way to protect against this downturn.
Currently, implied volatility in the currency pair is low, with the Deutsche Bank FX Volatility Index around 6.5. This makes buying options relatively cheap, favoring strategies like the bull call spread or outright buying puts for hedging. In this environment, paying a small premium for protection or directional bets is more appealing than selling options.
Gold prices in Pakistan increased today according to data from various financial sources.
Gold prices in Pakistan rose on Monday, reaching 44,955.57 Pakistani Rupees (PKR) per gram. This is an increase from 44,399.05 PKR per gram on Friday. The price for one tola of gold went up from 517,861.80 PKR on Friday to 524,353.00 PKR.
FXStreet updates gold prices daily, converting international prices into local currency using current market rates. They provide different unit measures as well, with 10 grams priced at 449,567.80 PKR and a troy ounce at 1,398,270.00 PKR. Keep in mind that local rates may vary slightly.
Gold as a Reliable Asset
Gold is viewed as a safe investment during economic downturns. It helps protect against inflation and depreciation of currency. Central banks often hold a lot of gold; in 2022, they added 1,136 tonnes to their reserves. Countries like China, India, and Turkey are increasing their gold reserves quickly. The price of gold usually moves in the opposite direction of the US Dollar and US Treasuries. When the Dollar weakens, gold prices tend to rise, making it a good option during uncertain times. Economic factors like political instability and interest rates also affect gold’s value. With the recent rise in gold prices, this trend seems likely to continue due to a weaker US Dollar and expectations of interest rate cuts by the Federal Reserve. Looking back to 2025, the US Dollar Index (DXY) has consistently fallen from its previous highs and is currently trading in the 97.00 to 98.00 range. Traders should prepare for sustained high prices, as strong fundamentals support gold. This upward pressure is backed not just by speculation but by high physical demand from central banks. Last year, central banks globally added another 1,050 tonnes to their reserves, nearing the record pace of previous years. This steady buying helps set a strong price floor, suggesting limited downside risk. Therefore, buying call options during price dips may be a wise strategy.Market Signals and Strategies
However, it’s important to note the mixed signals in the broader market. Equity indices like the Nikkei 225 reached all-time highs last week. This difference shows that gold’s rise is mainly driven by geopolitical issues and trends toward de-dollarization, rather than just a general move away from risk. This could increase volatility, making strategies like straddles or strangles appealing for traders expecting significant price movements in either direction. Currently, the market anticipates a high likelihood of a Fed rate cut in the second quarter, especially after last month’s core inflation data dropped to 2.9% annually. As a non-yielding asset, gold becomes more appealing when interest rates fall, lowering its opportunity cost. Therefore, any confirmation that the central bank will soften its stance should be seen as a strong positive signal for gold futures. Create your live VT Markets account and start trading now.Gold prices in India increased today, according to compiled data.
Gold prices in India went up on Monday, according to FXStreet data. The price per gram rose to 14,628.42 Indian Rupees (INR) from 14,439.99 INR on Friday.
The price per tola increased to 170,622.60 INR from 168,425.20 INR. These prices are based on global market rates (USD/INR) and are updated daily.
Gold As A Store Of Value
Gold is often viewed as a safe investment and a reliable option during tough times. It acts as a buffer against inflation and currencies losing value. Central banks hold significant gold reserves to back their currencies. In 2022, they added 1,136 tonnes of gold, worth $70 billion, as reported by the World Gold Council. Major reserves are held by emerging economies, including China and India. Gold typically moves in the opposite direction of the US Dollar and Treasuries. When the Dollar weakens, gold prices often rise. Changes in risk assets can also affect gold’s value, usually leading to price increases during uncertain times. Interest rates and global events can greatly impact gold prices. A strong Dollar tends to lower gold prices, while a weaker Dollar can boost them.Market Expectations And Gold Trends
The recent rise in gold prices is a trend we’ve expected. This movement ties into broader market changes in monetary policy. Derivative traders should see this as a continuation of a trend that began in the second half of 2025, rather than a temporary increase. Looking back, the interest rate cuts by the US Federal Reserve in 2025 have mainly driven this change. With the benchmark rate now at 4.25%, gold’s appeal as a non-yielding asset has increased significantly. This suggests that call options on gold futures might see more activity and potential value soon. We also need to consider ongoing inflation, which, although lower, has carried over into this year. The most recent US inflation data from January 2026 showed a rate of 3.2%. While this is manageable, it still encourages investors to look for ways to protect their capital, strengthening gold’s attractiveness and supporting a positive outlook. Strong demand from central banks continues to provide a solid price foundation. In 2025, they added another 950 tonnes to their reserves, marking the fourth year of robust buying. This institutional demand, especially from emerging economies, offers stability that may cushion short-term price drops. The recent price trends also reflect a weakening US Dollar. The Dollar Index (DXY) has been declining since the Fed changed its policy in late 2025, creating favorable conditions for gold. Traders can expect this inverse relationship to continue, meaning further Dollar weakness may lead to higher gold prices. Additionally, ongoing trade negotiations create geopolitical uncertainty, driving investors toward safe assets. We saw in 2025 how quickly money moved into gold during market stress. This situation makes holding long positions appealing and suggests that put options could struggle in the current market. Create your live VT Markets account and start trading now.USD/CAD sees slight increase to around 1.3660 amid mixed Canadian employment figures during early trading
USD/CAD saw some gains near 1.3660 during early European trading on Monday. Canadian employment data showed a loss of 24,800 jobs in January, but the unemployment rate surprisingly dropped to a 16-month low of 6.5%.
Federal Reserve Vice Chair Philip Jefferson stated that interest rates are currently neutral. Mary Daly from San Francisco hinted at possible rate cuts. Market watchers are eager for more information from upcoming Fed speeches and the US employment report due on Wednesday.
The delayed US employment report is expected to show 70,000 new jobs for January, with the unemployment rate holding steady at 4.4%. The job losses in Canada were mainly in part-time positions, and the lower unemployment rate reduced the chances of aggressive easing by the Bank of Canada, which supported the Canadian Dollar (CAD).
The CAD is affected by the Bank of Canada’s interest rates, the price of oil, and overall economic health. Higher oil prices and better economic data usually strengthen the CAD. Bank of Canada’s interest rate decisions also play a crucial role in controlling inflation and affecting credit conditions. Key economic indicators, like GDP and employment data, influence the CAD’s path.
Looking back to early 2025, the market faced mixed signals for the USD/CAD pair. The Canadian economy had odd job losses paired with a declining unemployment rate, and Federal Reserve officials disagreed on interest rate policies. This created uncertainty around the 1.3660 level.
In 2025, some dovish remarks from Fed members didn’t materialize right away, as persistent services inflation kept the Fed from changing rates until a modest quarter-point cut in late September. US core inflation remained stubborn at about 3.1%, well above the Fed’s target. This environment indicates that expectations for major US rate cuts soon may be too optimistic, supporting the US dollar.
On the Canadian front, the Bank of Canada began easing in July 2025 but has been cautious due to housing market inflation concerns. Additionally, WTI crude oil prices struggled to stay above $75 per barrel due to slowing global demand forecasts for 2026. The combination of weaker oil prices and a cautious Bank of Canada limits the potential for the CAD to rise, keeping USD/CAD around 1.3800.
With differences in central bank strategies and ongoing uncertainty in energy markets, traders should consider strategies that can profit from significant price movements in either direction. Options like straddles or strangles on USD/CAD could be beneficial, as they profit from a breakout regardless of direction. Implied volatility has been rising ahead of next month’s central bank meetings, highlighting market tension.
The upcoming US non-farm payrolls report will be crucial. A strong report showing over 200,000 new jobs could diminish the likelihood of near-term Fed rate cuts. We recall that a surprisingly strong jobs report in summer 2024 led to a rapid 150-pip jump in USD/CAD in a single day. A similar scenario now could push the pair toward the 1.4000 resistance level.
Gold prices increased today in Malaysia according to data from various sources.
Gold prices in Malaysia have gone up, now sitting at 635.22 MYR per gram. This is higher than Friday’s price of 627.32 MYR. The price per tola also increased, moving from 7,316.96 MYR to 7,409.69 MYR.
FXStreet determines Malaysian Gold prices by converting international rates to MYR and local measurements. These rates get updated daily and reflect market conditions at the time of publication, though local prices might differ slightly.
Gold As A Safe Haven Asset
Gold is prized as a safe-haven asset and a way to protect against inflation. Central banks, especially those in emerging economies like China, India, and Turkey, have quickly built their Gold reserves, buying 1,136 tonnes worth around $70 billion in 2022. The price of Gold tends to move in the opposite direction of the US Dollar and US Treasuries. Various factors influence Gold prices, including geopolitical tensions, worries about recessions, and interest rates. When the US Dollar weakens, Gold prices often rise. FXStreet offers different market updates, but this content is not meant to serve as investment advice. The team also discusses other financial topics like currency exchange and trends based on economic indicators and market changes.Recent Market Movements
The recent rise in Gold prices reflects a significant global trend. Gold has just broken through the important psychological barrier of $5,000 per ounce. This shows strong momentum that traders should watch in the coming weeks. Central bank purchases are a key factor driving this market strength. In 2025, we saw these banks add over 1,000 tonnes of Gold. Recent data from the World Gold Council indicates that another 250 tonnes were bought in the last quarter alone. This ongoing demand from official entities supports a solid price floor. Expectations of a dovish Federal Reserve are fueling this rally. The latest January 2026 Consumer Price Index (CPI) data came in softer than expected at 2.1%. As a result, the futures market now sees an 85% chance of a rate cut in the March Federal Open Market Committee (FOMC) meeting. Lower interest rates make Gold, which doesn’t earn interest, more attractive. This trend is strengthened by a noticeable weakness in the US Dollar. The Dollar Index (DXY) has recently fallen below the critical 95.00 support level, a shift from the highs seen in 2024. As long as the Dollar remains weak, it creates favorable conditions for Gold priced in USD. With this strong bullish sentiment, it might be wise to consider buying call options to benefit from potential price increases. Look at contracts for March and April 2026 with strike prices around $5,100 and $5,200. Implied volatility is rising, so getting in now could be beneficial before it becomes more expensive. To manage risk, we could use bull call spreads to limit potential losses. Traders should also stay alert for any changes in Fed signals towards a more hawkish approach. A surprise move by the central bank or a sudden rebound in the Dollar would signal a need to hedge long positions. Create your live VT Markets account and start trading now.In January, Indonesia’s Consumer Confidence rose from 123.5 to 127.
Indonesia’s consumer confidence index increased from 123.5 to 127 in January, indicating improved sentiment compared to earlier readings.
The USD/INR fell as the US-India tariff deal strengthened the rupee. The US Dollar Index stayed close to 97.50 while traders awaited important economic reports.
GBP/USD Exchange Rate
The GBP/USD exchange rate remains bullish, sitting above 1.3600. In the early Asian session, it dipped slightly to around 1.3610. Gold continues to thrive, staying above $5,000 in price. Demand has risen due to purchases from China and expectations of rate cuts from the Federal Reserve. In Saudi Arabia, gold prices rose according to FXStreet data. The EUR/USD trades above 1.1800, displaying positive momentum with the RSI momentum indicator at 54. Aster, Decred, and Kaspa led the gains in the cryptocurrency market as selling pressure lessened. Bitcoin climbed to over $70,000 after falling to $60,000 earlier.Cryptocurrency Market Trends
Bitcoin, Ethereum, and Ripple prices have stabilized after experiencing substantial weekly drops of around 9%, 8%, and 10% respectively. Even with this stability, recovery remains limited as the broader trend continues to decline. Reflecting on the sentiment in 2025, the US Dollar Index was weak around 97.50, influenced by expectations of Federal Reserve rate cuts. After the Fed implemented two cuts in late 2025, the index traded near 95.20, confirming a downward trend. We recommend buying call options on the EUR/USD due to this dollar weakness. The surge of gold past $5,000 last year signaled strong central bank buying and the anticipated Fed shift. This momentum continues, with gold currently near $5,250 per ounce. A World Gold Council report showed record central bank purchases of 800 tonnes in the second half of 2025. We believe buying call options on gold futures is a good strategy to benefit from this ongoing uptrend. In 2025, the Pound Sterling faced pressure from anticipated Bank of England rate cuts. The BoE did cut rates to cool the economy. However, UK CPI data for January 2026 came in higher than expected at 3.8%, placing the central bank in a challenging position. This uncertainty suggests using options straddles on GBP/USD to capitalize on potential price swings around the next policy announcement. Emerging markets are looking strong, particularly with Indonesian consumer confidence reaching 127 in January 2025. This positive domestic situation has endured, as Indonesia’s economy grew robustly by 5.1% year-over-year in the fourth quarter of 2025. With the US dollar generally weak, we see opportunities in selling USD/IDR futures or buying put options on this pair. Last year, Bitcoin was working to stabilize around $70,000 after a sharp decline, with the overarching trend still bearish. It has since moved within a tight range, and implied volatility on Bitcoin options has dropped to multi-year lows under 40%. This creates an opportunity to buy long-dated strangles at a relatively low cost to prepare for a potential price breakout later this year. Create your live VT Markets account and start trading now.Japanese Yen rebounds from two-week low after election results amid fiscal concerns
The Japanese Yen showed a small recovery, despite warnings from Japan’s Finance Minister about potential interventions and coordination with the US regarding unpredictable foreign exchange movements. The USD/JPY pair saw a shift from the 157.65 mark, its highest point in over two weeks, after Prime Minister Sanae Takaichi’s election victory.
Following the election results, worries about Japan’s finances grew. In December, real wages in Japan dropped for the 12th month in a row, even though nominal wages rose by 2.4% compared to last year. This ongoing decline in real wages makes it less likely for the Bank of Japan to quickly increase rates, even after it raised them for the first time in decades. The Finance Minister highlighted the importance of communicating with markets to stabilize the Yen.
Impact of Election Results
The Liberal Democratic Party’s election win allowed for tax cuts amid existing concerns about high public debt. Key figures showed discomfort with one-sided foreign exchange movements. In the USD/JPY pair, tools like the MACD and RSI indicate potential declines, even though strength around the 100-hour SMA suggests some short-term gains. Global events and US data releases are likely to influence the pair’s movements. The Bank of Japan (BoJ) previously followed very loose monetary policies but is starting to change course due to Japan’s inflation rise, driven by a weakening Yen and increasing domestic wages. Currently, the Japanese Yen is influenced by two opposing factors. Government officials are warning about market interventions to strengthen the currency, while the new government’s plans for increased spending and the BoJ’s careful approach to interest rates suggest a weaker Yen. The threat of intervention is significant and should be taken seriously. The Ministry of Finance intervened multiple times in 2022 when the dollar-yen rate surpassed 150, and recent verbal warnings imply they may take action again if it reaches around 158. For now, this verbal pressure may help prevent significant weakness of the Yen.Focus on US Economic Reports
Meanwhile, the Bank of Japan lacks strong motivation to aggressively raise interest rates. Data from late 2025 indicated that real wages fell for the 12th straight month in December. Preliminary January 2026 data from the Japan Business Federation suggests no improvement. Without wage growth to boost inflation, the BoJ is likely to stay sidelined, which generally weakens a currency. This week, attention will shift significantly to the United States and its upcoming economic reports. Recent predictions suggest a slight cooling of the US labor market, which might weaken the dollar. The inflation data released on Friday will be crucial, as it will influence expectations for the Federal Reserve’s next actions. Given the uncertainty, buying volatility seems to be the safest approach. A straddle—purchasing both a call and a put option with the same strike price and expiration—would allow traders to potentially profit from a large price movement in either direction. This strategy prepares for a sharp decline in the dollar-yen pair due to intervention, or a quick increase if the Yen’s fundamental weaknesses prevail. For those believing that intervention threats will limit potential gains, selling out-of-the-money call spreads could work well. This involves selling a call option at a level we think the dollar-yen won’t reach, such as 158.00, and buying a further out call to reduce risk. This allows traders to earn a premium by betting that the pair will stay within a specific range in the upcoming weeks. Create your live VT Markets account and start trading now.The positive outlook for the Singapore dollar is supported by strong domestic growth and a strong Chinese yuan.
MUFG’s Asia FX team has a positive view on the Singapore Dollar (SGD), driven by a strong Chinese Yuan and solid domestic growth. The Monetary Authority of Singapore (MAS) has kept its Nominal Effective Exchange Rate Index (S$NEER) policy unchanged, and Singapore’s GDP for Q4 is likely to be revised upward.
Both the SGD and the Malaysian Ringgit (MYR) are expected to benefit from stable sentiment around the Chinese Yuan (CNY) and strong domestic economic conditions. The final Q4 GDP figures for Singapore might surpass initial estimates, showing healthy domestic progress. MAS maintained its monetary policy during the January review, leaving the S$NEER appreciation rate steady.
Fxstreet Insights Team And Content
The FXStreet Insights Team consists of various journalists who gather selected market insights, including contributions from well-known experts and analysts. FXStreet also provides updates on gold prices in countries like the Philippines and UAE, as well as market trends for major currencies, including EUR/USD and GBP/USD. This information, along with other market reports, offers valuable insights into global financial trends. The article has contributions from an AI tool and is curated and reviewed by editors to ensure it is accurate and complete. We have a positive outlook for the Singapore dollar, expecting it will gain strength against the US dollar in the coming weeks. Support is coming from a strengthening Chinese Yuan, which benefited from China’s trade surplus in January, beating expectations at $95 billion. This contributes to a favorable sentiment in the region.Monetary Authority Of Singapore And Strategies
The Monetary Authority of Singapore reaffirmed its steady appreciation policy for the S$NEER during its January 2026 meeting, showing confidence in the domestic economy. This confidence appears justified, as Singapore’s latest manufacturing PMI for January stands at a solid 51.2, indicating growth. We anticipate the final Q4 2025 GDP figures, set to be released soon, will be higher than earlier estimates. Given this outlook, traders may want to consider strategies that benefit from a lower USD/SGD exchange rate, currently around 1.3350. One effective approach is to buy USD/SGD put options, which allow for downside exposure while limiting risk to the premium paid. This strategy makes it possible to participate in a move toward the 1.3200 support level seen late last year. It’s important to remember the price movements from mid-2025, when uncertainty about US Federal Reserve policy led to a temporary spike in the pair to around 1.38. While the current fundamentals seem more favorable for the SGD, that period serves as a reminder of how quickly market sentiment can change. Therefore, using defined-risk strategies like options spreads could be a wise choice to express this view. Create your live VT Markets account and start trading now.Japan’s Chief Cabinet Secretary Kihara and diplomat Mimura express concerns about rapid unilateral currency fluctuations.
Japan’s Chief Cabinet Secretary, Minoru Kihara, voiced concerns about recent foreign exchange changes, calling them swift and unbalanced. Atsushi Mimura, a senior currency diplomat, is closely monitoring these movements, showing a strong sense of urgency.
At present, the USD/JPY exchange rate is down by 0.16%, sitting at 156.85. The Japanese Yen’s value is greatly affected by the country’s economy, policies from the Bank of Japan, differences in bond yields between Japan and the US, and general market feelings.
