BOJ signals readiness for more rate hikes as yen weakness fuels inflation risksCiti downgrades European stocks on Greenland tariff tensionChina meets trade pledge with surge in US soybean purchases, but keeps Brazil option openChina moves to curb price wars (“involution” again), weighs national M&A fundMorgan Stanley: Trump tariff threat poses limited broad risk to Europe stocksJapan stocks slide as bond yields hit records and Greenland tensions biteChina keeps LPRs unchanged, signalling patience on broad easing – further detailPBOC sets USD/ CNY central rate at 7.0006 (vs. estimate at 6.9576)PBOC set 5- and 1-year LPR rates unchanged, 3.5% and 3.0% respectively. As expected.Citi flags risk of three BOJ hikes in 2026 if yen weakness persists. Watch USD/JPY 160PBOC is expected to set the USD/CNY reference rate at 6.9576 – Reuters estimateReport Trump admits ‘bad information’ on Greenland troop moves. Opens de-escalation door?Banks split on USD impact from Trump Greenland tariff threat, diverge on sell America riskJapan snap election puts BOJ–fiscal policy clash in focus, Goldman Sachs warnedVenezuela plans to boost gold and iron mining output to attract inbound FXExpandarama! New Zealand services PMI December 2025: 51.5 (prior 47.2)investingLive Americas FX market wrap: Vujcic picked as ECB Vice PresidentAt a glance:Markets were subdued as investors waited for US trading to fully resume after the holiday.New Zealand data surprised positively, with services PMI back in expansion, lifting NZD and supporting AUD.Japan’s bond sell-off deepened, with the 40-year JGB yield hitting 4% on fiscal and tax-cut concerns.China held LPRs steady, delivered its strongest yuan fix since May 2023, and stepped up US soybean buying.Geopolitics stayed in focus after Trump conceded possible misinformation on Greenland troop moves.10y US Treasury yield continued higher, back to a 4-month highIt was a session defined by limited data and a wait-and-see mood, with markets marking time ahead of a full reopening in the US after the holiday Monday.In New Zealand, the services sector returned to expansion in December, with the PSI rising to 51.5, ending a 21-month contraction. The improvement followed last week’s manufacturing PMI rebound, reinforcing signs of economic stabilisation. NZD/USD found support on the data and extended gains as the session progressed, while AUD/USD also pushed higher.The yen traded in a narrow range, but pressure continued to build in Japan’s bond market. Japan’s 40-year government bond yield hit 4%, the highest since the bond’s debut in 2007 and the first time in more than 30 years that any Japanese sovereign yield has reached that level. The move reflected an accelerating JGB sell-off amid growing fiscal concerns, particularly around proposals to cut the food sales tax. The Centrist Reform Alliance has suggested funding a zero food tax through a new government-linked fund, adding to investor unease around public finances.In China, the PBOC kept its one- and five-year loan prime rates unchanged for an eighth straight month, in line with expectations. The decision reinforces a preference for targeted easing tools, with broader rate cuts still seen later in Q1 or Q2. Shortly after, the USD/CNY reference rate was set at its strongest level for the yuan since May 18, 2023, prompting USD/CNH to fall in the minutes following the fix.Separately, traders reported that China has purchased around 12 million tonnes of US soybeans over the past three months, meeting a key trade pledge outlined by the Trump administration in November.On the geopolitical front, CNN reported that Donald Trump conceded in a call with UK Prime Minister Keir Starmer that he may have received “bad information” regarding European troop deployments to Greenland. UK officials cited in the report see scope for de-escalation, though broader US–Europe disagreements remain unresolved.Looking ahead, Trump is scheduled to deliver a special address at the World Economic Forum in Davos on January 21, 2026, from 13:30–14:15 GMT.Overall, major FX pairs traded in relatively subdued fashion, with markets largely in consolidation mode. Asia-Pac stocks:Japan (Nikkei 225) -1.14%Hong Kong (Hang Seng) -0.08% Shanghai Composite -0.12%Australia (S&P/ASX 200) -0.66%4th session of sliding for Japan’s Nikkei: This article was written by Eamonn Sheridan at investinglive.com. 🔗 Source 💡 DMK Insight The BOJ’s readiness for rate hikes is a game changer for traders focused on the yen and inflation. With the yen’s weakness contributing to rising inflation risks, the central bank’s shift could lead to increased volatility in forex markets. Traders should keep an eye on USD/JPY, especially if it approaches key resistance levels. A rate hike could strengthen the yen, impacting not just forex but also equities, particularly those tied to export-driven sectors. Meanwhile, Citi’s downgrade of European stocks highlights broader market concerns, particularly with tariff tensions. This could create ripple effects in related markets, especially if trade tensions escalate further. Watch for how these developments influence market sentiment and trading strategies, particularly for those holding long positions in European equities or short positions in the yen. The immediate focus should be on the next BOJ meeting and any signals regarding timing for rate hikes, as these could set the tone for the coming weeks. 📮 Takeaway Monitor USD/JPY closely for potential resistance levels as BOJ signals rate hikes; volatility is likely to increase in both forex and equities.

Geopolitical tensions remain at the forefront as Trump raised the stakes on the whole Greenland situation over the weekend. In case you missed it, he threatened tariffs on eight European countries over their opposition to US control of Greenland. That being Denmark, Norway, Sweden, France, Germany, Netherlands, Finland, and the UK.The tariffs will come in two stages, the first being a 10% levy on all goods starting from 1 February. Thereafter, it will increase to 25% starting from 1 June unless “a deal is reached for the complete and total purchase of Greenland”. Oh, what fun.The erratic policy nature of the US administration is rearing its ugly head again. And that’s putting risk sentiment on the defensive. Meanwhile, precious metals are pushing higher while the dollar is struggling in the major currencies space. Go figure. It’s pretty much a repeat of 2025 once equities brush aside the geopolitical risks in due time.All of this just continues to play into the structural narrative that has been building since Trump first threatened the world with tariffs in Q1 last year. So, yeah. That is the bigger picture story.For US stocks, it might not be as easy to fade the negative headlines this time around. For one, we’ve seen such a heated rally in the past year already with tech shares and AI stocks not letting up. But now, AI valuation concerns are creeping in and there are more things to factor in when looking purely into the “AI trade” as seen here.US futures are keeping lower still today awaiting the return of the long weekend in Wall Street. S&P 500 futures are still down 1.0% with Nasdaq futures down 1.1%. It’s pointing to a rough start but we’ll have to see if investors will feel comfortable enough to bounce back in the early stages this week.I would be more confident in saying there’s better scope for European stocks to do so but at the same time, it’s also a good time to pull back a little there after having hit fresh record highs last week.Three more years to go. Fun times, innit? This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight Geopolitical tensions are flaring, and here’s why ETH traders should pay attention: With ETH currently at $3,104.64, the potential for tariffs on European nations could ripple through markets, impacting investor sentiment. If these tensions escalate, we might see a flight to safety, which often drives investors toward cryptocurrencies like Ethereum. Traders should keep an eye on how these geopolitical developments affect broader market volatility. If ETH breaks below key support levels, say around $3,000, it could trigger further selling pressure. Conversely, if it holds above this level, it might attract buyers looking for a dip. Also, watch for how institutional players react; they often set the tone in these uncertain times. If they start pulling back on crypto investments due to geopolitical fears, it could lead to a significant downturn. The real story is that while some might see this as just political noise, it could have real implications for ETH’s price action in the coming days. 📮 Takeaway Monitor ETH’s support at $3,000; a break below could signal further downside, while holding above may attract buyers amidst geopolitical tensions.

Putin has been invited to join ‘Board of Peace’I will impose a 200% tariff on French wines and champagne; Macron will join ‘Board of Peace’I know who I want to be the Fed chairFor some context, this whole ‘Board of Peace’ thing is something that Trump is trying to create as part of a taskforce to oversee the next steps in Gaza. The main concern from global leaders is that Trump is attempting to supplant the current working order in international politics to gain extensive powers beyond transitional governance of the Gaza Strip. This also serves to undermine the existing United Nations framework of course.I’m not sure if he spoke to Macron overnight but his comment above doesn’t sound right. Macron has already said that he would reject Trump’s invitation and it would be off-brand to expect him to do so. That especially since Europe and the US are not really seeing eye-to-eye on any political ground at the moment – not just this one. So, I’d take it with a pinch of salt as it looks like Trump is just trying to goad Macron and the EU there. Note the tariffs comment just before it.As for the Fed chair, it’s still very much up in the air. The two Kevins are still the favourite with Hassett of course being more of a Trump loyalist. However, Waller’s bid is starting to gain some traction so we’ll have to see. Trump isn’t giving anything away just yet. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight With ETH hovering around $3,104.64, geopolitical tensions and tariff threats could shake market sentiment. Traders should keep an eye on how these developments impact risk appetite, especially in the crypto space, which often reacts sharply to external shocks. The ongoing narrative around tariffs, particularly from major economies, can lead to increased volatility in both crypto and traditional markets. If the situation escalates, we might see ETH testing support levels around $3,000 or even lower, depending on how traders react to the news. It’s also worth noting that while mainstream media focuses on the political drama, the underlying economic implications—like inflation and supply chain disruptions—could have longer-term effects on asset valuations. If the Fed’s stance shifts in response to these geopolitical tensions, we could see a ripple effect across all risk assets, including crypto. Keep an eye on the $3,200 resistance level for ETH; a break above could signal renewed bullish momentum, while a drop below $3,000 might trigger a wave of selling pressure. 📮 Takeaway Watch for ETH to hold above $3,000; a break below could lead to increased selling pressure, while a move above $3,200 may signal bullish momentum.

Up, up, and away! Gold bulls really couldn’t wish for a better start to the new year. And it’s all thanks to one man. The first week was filled with geopolitical tensions involving Venezuela. The next was an attack on Fed independence and added geopolitical risks with Iran. This week, it’s a combo of geopolitical strife and economic risks as Trump floats tariffs to try and get his way with Greenland.All of this just continues to exacerbate the same key drivers that have led to the gold rally in the past year.A safety hedge? Check. A hedge against stagflation risks? Check. Erratic US policy leading to a de-dollarisation theme? Check. Currency debasement worries? Check. Strong January seasonal pattern? Check.The only qualm with the surge higher in prices we’re seeing is that it might be going too far, too fast.But when you weigh everything against the backdrop above, it’s hard not to like the things that gold has going for it.As the run higher continues, the $5,000 mark will be eyed fairly closely next. That will be a big, big level to watch on any profit-taking activity. That especially if it coincides with the January seasonal strength tailing off.This is the kind of rally that will stop when it stops. Just think of it as the catching the falling knife dispensation but in reverse.To the moon! 🚀 This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight Gold’s recent surge is fueled by geopolitical tensions, and here’s why that matters for traders: With escalating risks from Venezuela and Iran, gold is becoming a safe haven, pushing prices higher. This trend could attract both retail and institutional investors looking for stability amid uncertainty. Traders should keep an eye on the $1,900 resistance level; a breakout could signal further upside potential. Conversely, if geopolitical tensions ease, we might see a pullback, so monitoring news cycles is crucial. The real story is how these events could ripple through related markets, like silver and even cryptocurrencies, as investors reassess risk. For those trading gold, consider using a short-term strategy to capitalize on volatility while being prepared for potential reversals. Watch for any shifts in Fed policy or further geopolitical developments that could impact market sentiment. 📮 Takeaway Keep an eye on gold around the $1,900 level; geopolitical tensions could drive prices higher or lead to volatility if they subside.

There is arguably just one to take note of on the day, as highlighted in bold below.That being for EUR/USD at the 1.1650 level. It’s not one that ties to any technical significance, so the impact of the expiries may be more limited. The dollar remains weak overall amid the whole Greenland situation, with traders punishing the greenback on more chaotic and erratic policy by the US administration.The 200-hour moving average sits at 1.1644 with the 100-day moving average at 1.1661. Those will be the more critical levels to be mindful of just in case we do see some pushing and pulling in price action in European morning trade.The expiries will just add a bit of layering to the key technical levels above but it’s all about traders defending the lines there that will matter more. In my view, the push back above the key hourly moving averages is a big step this week.Buyers are back in near-term control for the first time since the end of last year. As such, defending that 200-hour moving average line is a vital action in keeping a more bullish near-term bias. There was a bit of a struggle overnight and in early Asia trading to break above it but we’re now taking that in stride as the dollar continues to struggle today.For more information on how to use this data, you may refer to this post here.Head on over to investingLive (formerly ForexLive) to get in on the know! This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight EUR/USD is hovering around 1.1650, but don’t expect fireworks just yet. While this level is noteworthy, it lacks strong technical backing, meaning the expiries here might not drive significant movement. The broader context shows a weak dollar, which could keep EUR/USD buoyed in the short term. However, traders should be cautious; without a solid technical foundation, any moves could be fleeting. Keep an eye on related pairs like GBP/USD or AUD/USD, as they might react similarly to dollar weakness. Watch for any shifts in sentiment or economic data that could impact the dollar’s trajectory, especially with upcoming Fed announcements. If EUR/USD breaks above 1.1700, it could signal a stronger bullish trend, but until then, volatility might be muted. 📮 Takeaway Monitor EUR/USD closely at 1.1650; a break above 1.1700 could signal a stronger bullish trend.

Prior 5.1%Employment change 82k vs 30k expectedPrior -16kAverage weekly earnings +4.7% vs +4.6% 3m/y expectedPrior +4.7%; revised to +4.8%Average weekly earnings ex bonus +4.5% vs +4.5% 3m/y expectedPrior +4.6%December payrolls change -43kPrior -38k; revised to -33kAs a general reminder, the UK labour market report is still one plagued by data quality issues. And that looks set to continue further as outlined here last week: UK statistics office evaluates potential delay to its overhauled jobs survey – reportThe jobless rate holds steady at just above 5% in November but payrolls in December continues to fall further. And the latter underscores the continued softening in UK labour market conditions alongside the slow climb in the unemployment rate last year.Wages data continue to hold up somewhat, only reflecting a marginal drop from October. And with consumer prices still holding more stubborn, it’s keeping the BOE on edge in trying to decide what to do next on the policy front. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The UK labor market data just dropped, and it’s a mixed bag that traders need to unpack. The employment change came in at 82k, significantly above the expected 30k, which suggests a stronger labor market than anticipated. However, the December payrolls were revised down to -33k, indicating potential underlying weaknesses. Average weekly earnings are holding steady at +4.7%, but this is still a concern for inflationary pressures. For traders, this data could influence the Bank of England’s next moves, especially if they see continued strength in employment but rising inflation. Watch for how this plays into GBP pairs, particularly GBP/USD, as it could lead to volatility around key levels. If GBP/USD breaks above recent resistance, it could signal a bullish trend, but any signs of weakness could lead to a sharp pullback. Here’s the thing: while the headline numbers look good, the revisions and mixed signals could lead to uncertainty. Keep an eye on the next inflation report and how the market reacts to this data, as it could set the tone for the next few weeks. 📮 Takeaway Watch GBP/USD closely; a break above recent resistance could signal a bullish trend, but mixed labor data suggests caution ahead.

German producer prices saw an average annual decline of 1.2% in 2025, once again exhibiting a decline for a second year running. However, there is a caveat to that figure with it being a case largely owing to a steep decline in energy prices.Of note, energy prices showed a drop of 6.2% compared to the previous year. The breakdown shows that natural gas distribution was 8.3% cheaper on average in 2025 than in 2024, electricity 7.5% cheaper, and petroleum products 5.5% cheaper.If you strip out energy price developments, German producer prices were actually up by 1.2% instead in 2025 compared to the previous year.The more detailed breakdown elsewhere shows intermediate goods were on average 0.3% cheaper in 2025 than in 2024. Meanwhile, the prices for capital goods were on average 1.9% higher, with consumer goods on average 2.7% more expensive in 2025 compared to the year before.The story here is somewhat similar to what we’ve seen with Germany’s consumer price index progression. That being headline annual inflation reflecting a decline that is seen nudging closer to the pivotal 2% mark. However, core annual inflation is still keeping more stubborn and holding above the 2% threshold.The latter continues to be a thorn in the side of the ECB, preventing the central bank from following through on easing monetary policy further since the closing stages of last year. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight German producer prices are down 1.2% annually, but energy’s steep drop is the real story here. For traders, this decline in energy prices could signal broader deflationary pressures, impacting sectors reliant on energy inputs. If energy costs continue to fall, we might see a ripple effect across commodities and even equities, particularly in manufacturing and transport. Watch for how this influences inflation expectations and central bank policies, especially in the Eurozone. A sustained decline could pressure the ECB to adjust its monetary stance, which would be significant for forex traders focusing on EUR/USD. On the flip side, while lower energy prices can ease inflation, they might also indicate weakening demand, which could be a red flag for economic growth. Keep an eye on related assets like crude oil and natural gas, as their price movements could provide clues about future producer price trends. The key level to watch is the energy price index; if it continues to drop, expect further implications for producer prices and potentially the broader market. 📮 Takeaway Monitor energy price trends closely; a continued decline could pressure ECB policies and impact EUR/USD trading strategies.

What Trump is threatening on Greenland is very different than the other trade dealsThe worst thing other countries can do is to escalate trade tensions against the USWe’ll see a strong economy this yearUS to have real GDP growth of around 4% to 5%Fed chair announcement could be as early as next weekThere are four candidates for the Fed chair presentlyThey look to be doubling down on the rhetoric here and it remains to be seen if they will be open to any talks on the sidelines in Davos. Trump earlier posted about a text message sent by French president Macron about a potential G7 meeting in Paris on Thursday afternoon. However, he did not officially say that he will be accepting that invite. The message:If things with Greenland are indeed “different” in that they will treat their tariffs threat more seriously, then the trade chaos that will ensue is something that won’t go down well for the dollar and risk sentiment. So, just be on the lookout for that.The greenback is falling further on the day with EUR/USD now on approach to 1.1700 and USD/CHF down 0.4% to 0.7940 currently. NZD/USD is the lead gainer and is up 0.7% to 0.5840 despite a more negative risk mood.The Japanese yen is the other big loser on the day with it being even weaker than the dollar. USD/JPY is up 0.1% to 158.33 and that says a lot about the yen’s plight at the moment when it can’t even outpace the greenback. This article was written by Justin Low at investinglive.com. 🔗 Source

Gold Technical Analysis: Gold Futures Today Test Record Levels as Momentum StretchesDate: August 20, 2026Asset: Gold Futures (GC1!)Market: COMEXAnalyst: Itai Levitan, InvestingLive.com, see my gold futures technical analysis video, for today and this week, below:This gold technical analysis focuses on a critical moment for gold futures today, as prices surge +2.84% to trade near $4,725.7, effectively matching the 52-week high at $4,727.6. With gold sitting at record territory after a historic rally, traders and investors are now asking whether upside momentum can continue – or whether profit-taking risk is beginning to rise.Gold is up nearly 71% year-on-year and almost 38% over the past six months, an extraordinary move for a traditionally defensive asset. That context is essential for any realistic gold price forecast going forward.Global markets are in a state of heightened volatility as Gold tops $4,700 for the first time as the surge higher continues amidst a scramble for safe-haven assets. This rally is largely driven by escalating geopolitical tensions, specifically reports that Trump is threatening tariffs on Greenland if European allies block his bid to purchase the territory—a move Treasury Secretary Scott Bessent argues is “very different” from typical trade disputes due to its national security implications. As investors hedge against this uncertainty, Silver jumps to a new all-time high, riding the same wave of fear that is lifting gold. Meanwhile, in South America, a different resource strategy is unfolding as Venezuela plans to boost gold and iron mining output in a bid to secure much-needed foreign currency. In the battery metals sector, volatility is also the theme, as Lithium prices go parabolic, though analysts at Scotiabank have warned that the rally may be moving “too fast, too furious” for fundamentals to support.Gold Futures Today: Key Market Data at a GlanceCurrent price: $4,725.7Daily range: $4,622 – $4,7271-year performance: +70.96%6-month performance: +37.81%From a short-term perspective, gold futures today are trading at the top of the session range, signaling strong bullish control. At the same time, this type of positioning historically coincides with heightened sensitivity to profit-taking flows.Gold Technical Analysis: Why This Area Is a Critical JunctionIn this gold technical analysis, the focus is not on predicting an immediate reversal, but on identifying a junction zone where risk dynamics change.The $4,750 – $4,760 region represents a technical convergence of:Upper channel resistance from a well-defined trend structureParallel alignment with a modified pitchfork projectionProximity to record highs, where historical resistance is limitedJunction zones are areas where institutional participants reassess exposure. They are areas to watch, not levels to trade blindly. This distinction is crucial for maintaining discipline during extended trends.Gold Price Forecast: What Confirmation Would Actually Look LikeFor traders forming a gold price forecast, confirmation matters more than anticipation.Bearish confirmation would not come from price simply touching resistance. Instead, it would likely appear as:A brief overshoot above resistance followed by a red 4-hour candle closing back below the channelTwo consecutive higher-timeframe closes failing to hold above the breakout areaMomentum flattening rather than accelerating after the test of highsUntil such signals appear, the dominant trend in gold futures today technically remains intact.Gold Technical Analysis and Momentum Risk at ExtremesOne of the biggest misconceptions among retail traders is that strong momentum allows for very tight stops. In reality, extended momentum often increases volatility.In advanced gold technical analysis, this means:Pullbacks can be deeper than expectedTight stops are more vulnerable to noiseLate-stage longs often face poor probability despite attractive reward-to-risk ratios on paperThis is why professional traders tend to reduce size, take partial profits, or wait for confirmation rather than chase strength at record levels.Gold Futures Today: Risk Management and Instrument ChoiceGold futures require careful risk calibration. When a technically sound setup requires a wider stop, traders must adapt rather than force the trade.Many participants manage this by using micro gold futures (MGC), which allow:More flexible stop placementBetter alignment between technical structure and dollar riskReduced pressure to trade with unrealistic sizingInstrument choice is an underappreciated but essential component of any sustainable gold futures today strategy.Gold Price Forecast: Is the Upside Still Valid?From a structural perspective, the long-term gold price forecast remains constructive as long as price holds above key trend supports. However, from a tactical standpoint:Upside extension from current prices offers diminishing rewardDownside risk from volatility-driven pullbacks is increasingProbability is no longer as favorable as it was earlier in the trendThis does not imply immediate bearishness. It simply reflects a less attractive entry location for new longs.Gold Technical Analysis Summary: Observe, Don’t AnticipateAt InvestingLive, gold analysis is framed as decision support, not financial advice or prediction.This is a close and junction area:Not a guaranteed reversalNot a signal to chase strengthA zone where price behavior provides informationFor traders already long, this is a moment to reassess exposure and risk. For those waiting for opportunities, patience and confirmation are likely to offer better odds than anticipation.For continued updates, intraday commentary, and forward-looking gold price forecasts, visit InvestingLive.com and follow our market channels. You are also invited to join investingLive Stocks Telegram channel (it’s free) https://t.me/investingLiveStocks where we dish out more gems and trade ideas to consider. Trade at your own risk. Always at your risk only. We may be wrong and it’s your money, your decisions, your accountability. We’re just here sharing our experience, knowledge and opinions. See you on the next one. This article was written by Itai Levitan at investinglive.com. 🔗 Source 💡 DMK Insight Gold futures are testing record levels, and here’s why that matters right now: With prices surging, traders need to pay attention to momentum indicators that could signal overbought conditions. The current rally in gold is likely driven by a mix of geopolitical tensions and inflation concerns, which historically push investors toward safe-haven assets. If gold breaks through key resistance levels, it could trigger further buying from both retail and institutional investors. Watch for a close above recent highs, as that could set the stage for a new bullish trend. On the flip side, if we see a pullback, it might be a good opportunity to enter long positions at lower

The chaotic and erratic policy setting nature of the US administration continues to bite at the dollar to start the year. After a bit of a better showing in the early stages in 2026, the dollar is now trading down to fresh two-week lows. So much for a change in avenue, eh?As Trump steps up the rhetoric on Greenland over the weekend in threatening Europe with tariffs, geopolitical risks now turn to economic and trade risks once more. We’ve seen this episode already in 2025 and here we are again in 2026.Before this though, Trump has always ended up making a TACO situation. But after the move on Venezuela and his bitterness to not being awarded to Nobel Peace Prize, the latest assault on Greenland feels like it could be different.I mean, it might not be in the end but it doesn’t seem to matter. At this stage, markets are not waiting around to find out anymore. The dollar selling is almost immediate and it speaks to the confidence and current world view on the greenback.EUR/USD is now up 0.5% on approach to 1.1700 after making a break above both its key hourly moving averages for the first time this year:That shifts the near-term bias to being more bullish once again and is one technical reason in amplifying the dollar declines this session.The de-dollarisation and currency debasement theme continues to run so long as this chaos and unpredictability stays. And that will remain bad news for the dollar in general.But looking at the major currencies space today, there is another standout and that is the Japanese yen. Even with the dollar in the dumps, the yen is also lying at the bottom of the pile with USD/JPY near unchanged at 158.20 currently. That says a lot about the yen currency sentiment after Japan prime minister Takaichi called for a snap election for 8 February.Once again, if something can’t go up on good news then there’s bound to be trouble ahead. Tokyo intervention when? This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight The dollar’s drop to two-week lows signals deeper issues with US policy, and here’s why that matters: Traders should be paying close attention to how erratic policy decisions are impacting the dollar’s strength. A weaker dollar often leads to increased volatility in forex pairs, particularly those involving the euro and yen. If the dollar continues to slide, it could trigger a flight to safe-haven assets like gold, which has historically performed well in such environments. Look at the 1.10 level for EUR/USD; a sustained break above this could indicate a stronger euro and further weakness for the dollar. But don’t overlook the potential for a rebound. If the administration shifts towards more stable policies, we might see a quick recovery in the dollar, which could catch many traders off guard. Keep an eye on upcoming economic indicators and Fed announcements that could shift sentiment. The next few weeks will be crucial for establishing a trend, so monitor these developments closely. 📮 Takeaway Watch the 1.10 level for EUR/USD; a break above could signal further dollar weakness and increased volatility in forex markets.