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$FXS / FX Market Overview – January 2026 ⚡🌐
1️⃣ U.S. Dollar Movement 💵
USD is range-bound vs major currencies (EUR, JPY, CHF).
Slight up vs CHF 🇨🇭, slight down vs JPY 🇯🇵.
Dollar Index largely flat ⚖️ — investors rotating into other assets amid mixed data.
Traders awaiting Nonfarm Payrolls 📊, inflation data 📈, and potential Fed policy updates 🏦.
2️⃣ Institutional FX Activity 🏛️
FX turnover among institutional players slowed 3% 📉 in Nov 2025, after a mild uptick earlier.
Lower volatility + muted macro catalysts = quieter market environment 🤫.
3️⃣ Major Currency Pairs 💱
EUR/USD: hovering near mild losses ↘️; constrained by U.S. fiscal signals 🏛️ and event risks ⚠️.
Event risks like Congress funding actions 🏛️ and key macro releases 📊 continue to limit volatility.
4️⃣ Regulatory & Safety Alerts 🚨
Certain regions (e.g., India 🇮🇳) issued warnings against unauthorized FX platforms ⚠️.
Traders advised to stick to regulated operators ✅ to avoid scams or illegal activity ❌.
🇵🇰 Regional Spotlight: Pakistan FX Flows 💹
Forex firms sold $646M to banks 💰 in Q1 FY26, down from $750M a year earlier ↘️.
Dollar scarcity 💵 & slower remittances 🏦 affecting liquidity.
Dealers increasingly issuing dollar-denominated cheques 📝 instead of cash.
Short-term FX supply and remittance trends remain a key driver ⚡ of price movement in PKR/USD and related pairs.
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