West Texas Intermediate (WTI) Oil price depreciates after registering 2.86% gains in the previous session, trading around $62.40 per barrel during the European hours on Wednesday. WTI price hit a four-month high of $62.85 at earlier hours, driven by supply risks persisting. 🔗 Source 💡 DMK Insight WTI’s recent dip from a four-month high signals potential volatility ahead. After hitting $62.85, the pullback to around $62.40 raises questions about sustainability in this price range. Traders should consider that the initial gains were fueled by ongoing supply risks, which remain a key factor. If these risks escalate, we could see WTI bounce back, but a failure to hold above $62 could trigger profit-taking and further declines. Watch for support around the $62 mark; a break below could lead to a test of lower levels. Additionally, keep an eye on broader market sentiment and geopolitical developments that could impact oil supply. On the flip side, if WTI manages to reclaim the $62.85 level, it could signal renewed bullish momentum, attracting more buyers. This scenario would be worth monitoring closely, especially for those looking to enter long positions. Overall, the next few sessions will be crucial in determining whether this recent high was a peak or just a temporary setback. 📮 Takeaway Watch for WTI to hold above $62; a break below could signal further declines, while reclaiming $62.85 might attract bullish momentum.

The USD/INR pair inches higher after registering 0.25% losses in the previous session. The pair rebounds toward its all-time high of 91.96, reached on January 23, as the US Dollar (USD) gains amid caution ahead of the Federal Reserve (Fed) policy decision. 🔗 Source 💡 DMK Insight The USD/INR is creeping back up, and here’s why that matters: the pair’s recent losses could signal a buying opportunity as it approaches its all-time high of 91.96. With the Fed’s policy decision looming, traders are understandably cautious, but the USD’s strength suggests a potential bullish trend. If the pair breaks above 91.96, it could trigger further buying momentum, attracting both retail and institutional investors. Keep an eye on the Fed’s stance—any hints of tightening could push the USD/INR even higher. Conversely, if the Fed maintains a dovish outlook, we might see a pullback, making it crucial to monitor this level closely. Also, consider how this impacts related markets, like emerging market currencies or commodities priced in USD. A stronger dollar typically pressures these assets, so if you’re trading in those areas, be prepared for potential volatility. Watch for any significant moves around the Fed’s announcement, as they could set the tone for the USD/INR in the coming weeks. 📮 Takeaway Watch the USD/INR closely; a break above 91.96 could signal a strong bullish trend, especially with the Fed’s decision approaching.

The National Bank of Hungary maintained its tone during a recent meeting, with no immediate indication of rate cuts. However, the market reaction suggests a green light for potential cuts in February, especially if January inflation data supports this. 🔗 Source 💡 DMK Insight Hungary’s central bank is holding steady, but traders are eyeing February for potential rate cuts. The lack of immediate cuts signals stability, yet the market’s optimistic reaction hints at a shift if January’s inflation data comes in lower than expected. This could create volatility in the HUF/USD pair, especially if inflation trends downward, making it a key watchpoint for day traders. If inflation drops significantly, it could trigger a bullish sentiment towards the HUF, leading to a potential rally. Conversely, if inflation remains stubbornly high, the central bank may have to maintain its current stance, which could lead to a sell-off in the HUF. Traders should keep an eye on the upcoming inflation report and consider positioning themselves accordingly. A break below key support levels in the HUF/USD could indicate a bearish trend, while a positive inflation report could see the currency strengthen against the dollar. Watch for January’s inflation data release as a critical event that could dictate market direction. 📮 Takeaway Monitor January’s inflation data closely; a significant drop could set the stage for HUF strength in February.

Four companies are set to decide the direction of the stock market this week, with guidance – not headline earnings – likely determining whether the AI rally continues or cracks. 🔗 Source 💡 DMK Insight With ETH at $3,030.35, the upcoming corporate guidance could shift market sentiment significantly. If these companies signal strong growth, we might see a bullish trend that lifts ETH alongside equities, especially given its correlation with tech stocks. However, if guidance disappoints, it could trigger a sell-off, impacting not just stocks but crypto as well. Traders should keep an eye on the broader market reaction, particularly in the tech sector, as it could influence ETH’s momentum. Watch for key support around $3,000; a break below could signal a deeper correction. Conversely, a sustained rally above $3,100 might attract more buyers, pushing ETH higher. Here’s the thing: while many are focused on earnings, guidance will be the real tell. If companies hint at AI-related growth, expect a ripple effect across the market, including crypto. But if the sentiment turns sour, ETH could face headwinds, so stay alert for those signals. 📮 Takeaway Watch for ETH to hold above $3,000; guidance from major companies this week could dictate its next move.

Gold (XAU/USD) continues scaling new all-time peaks through the first half of the European session on Wednesday, with bulls looking to build an eight-day winning streak beyond the $5,300 mark . 🔗 Source 💡 DMK Insight Gold’s surge past $5,300 is a big deal for traders right now. This rally isn’t just about technical levels; it reflects broader economic uncertainty and inflation fears that are pushing investors toward safe havens. With gold on an eight-day winning streak, we could see momentum traders jumping in, especially if it breaks through key resistance levels. Watch for any pullbacks, as they might provide buying opportunities, but be cautious of overextension. If gold can hold above $5,300, it could trigger further buying, while a drop below this level might lead to profit-taking. On the flip side, if the dollar strengthens or yields rise, we could see a reversal. Keep an eye on correlated assets like silver and the broader commodities market, as they often react to gold’s movements. For now, traders should monitor the daily chart for any signs of exhaustion or reversal patterns, particularly around the $5,300 mark. 📮 Takeaway Watch for gold’s ability to maintain its position above $5,300; a sustained hold could lead to further gains, while a drop below may trigger selling pressure.

Paul Donovan from UBS, notes that a unanimous 92 out of 92 surveyed economists expect no change in US interest rates today. He discusses the potential need for an insurance rate cut to maintain consumer spending and the implications of President Trump’s comments on the US Dollar. 🔗 Source 💡 DMK Insight No change in US interest rates is expected, but here’s why that matters: With 92 economists in agreement, traders can anticipate stability in the dollar, which could impact forex pairs heavily tied to it. However, the mention of a potential insurance rate cut to support consumer spending suggests that the Fed is still on alert for economic shifts. If consumer spending falters, we might see a shift in sentiment that could lead to volatility in the dollar and related assets. Keep an eye on the USD pairs, especially against the Euro and Yen, as any unexpected comments from the Fed or economic data releases could trigger sharp moves. Also, watch for President Trump’s statements—they can sway market sentiment quickly. If the dollar strengthens, it could pressure commodities like gold, which often inversely correlate with the dollar’s performance. Traders should monitor the daily charts for breakouts or reversals around key levels, particularly if we see any shifts in consumer confidence data or retail sales figures in the coming weeks. 📮 Takeaway Watch for any shifts in consumer spending data; a surprise rate cut could weaken the dollar and impact related forex pairs significantly.

Italy Consumer Confidence came in at 96.8 below forecasts (97) in January 🔗 Source 💡 DMK Insight Italy’s Consumer Confidence dropping to 96.8 is a red flag for traders: This figure not only missed expectations but also signals potential weakness in consumer spending, which could ripple through the Eurozone economy. For day traders and swing traders, this might suggest a bearish sentiment towards the Euro, especially if the trend continues. Keep an eye on correlated assets like EUR/USD, which could see increased volatility as traders react to this data. If the Euro weakens, it could also impact commodities priced in Euros, like oil and gold, creating further trading opportunities. On the flip side, if the market overreacts, there could be a short-term bounce back in the Euro as traders look for value. Watch for key technical levels around 1.0800 in EUR/USD; a break below could trigger further selling pressure. The immediate focus should be on how this data influences upcoming ECB decisions and market sentiment in the next few weeks. 📮 Takeaway Monitor EUR/USD closely; a break below 1.0800 could signal further downside following Italy’s disappointing Consumer Confidence data.

Italy Business Confidence above forecasts (89) in January: Actual (89.2) 🔗 Source 💡 DMK Insight Italy’s business confidence just edged above forecasts, and here’s why that matters: An actual reading of 89.2 against the expected 89 signals a slight uptick in sentiment, which could influence the eurozone’s economic outlook. For traders, this is a crucial indicator as it reflects business expectations that can drive investment and spending. If this trend continues, we might see a stronger euro, especially against currencies like the USD, which has been under pressure from mixed economic data. Keep an eye on the EUR/USD pair; a sustained move above recent resistance levels could indicate a bullish trend. But don’t overlook the flip side—if this confidence doesn’t translate into actual economic growth, we could see a quick reversal. Watch for upcoming economic releases from Italy and the broader eurozone, as they could either confirm this positive sentiment or dampen it. The next few weeks will be pivotal, especially as traders assess the implications for monetary policy from the European Central Bank. Monitor the 1.10 level on EUR/USD closely; a break above could signal further gains. 📮 Takeaway Watch the EUR/USD pair closely; a break above 1.10 could signal a bullish trend if business confidence translates into growth.

Switzerland ZEW Survey – Expectations dipped from previous 6.2 to -4.7 in January 🔗 Source 💡 DMK Insight The drop in Switzerland’s ZEW expectations from 6.2 to -4.7 is a red flag for traders: This significant shift indicates a growing pessimism among investors regarding the Swiss economy’s outlook. Such a decline can impact the Swiss franc (CHF) as traders reassess their positions, potentially leading to increased volatility in forex pairs involving CHF. If this trend continues, we could see a bearish sentiment that might push the CHF lower against major currencies like the USD and EUR. Look for key support levels in the USD/CHF pair, particularly if it approaches recent highs. A sustained move below these levels could trigger further selling pressure. Also, keep an eye on related assets, such as Swiss equities, which may react negatively to this sentiment shift. The real story here is how quickly traders adjust their expectations; a rapid decline in sentiment could lead to cascading effects across European markets, especially if other economic indicators follow suit. Watch for any upcoming economic data releases that could either confirm or contradict this bearish sentiment. 📮 Takeaway Monitor the USD/CHF pair closely; a break below key support levels could signal further downside for the Swiss franc.