Leans towards more cuts in 2026, hard to say if it’s one or twoSays she keeps an open mind on ratesTo cut, you’d need to be more confident on inflation or see labor market as more challenged that currentlyWorkers feel they are on the knife’s edgeIf job market goes from ‘no firing’ to ‘some firing’ Fed may need to cutShe sees more vulnerability on jobs market than inflationWould be comfortable holding for longer if inflation picks upThe market is pricing in an 18% chance of a cut in March and one cut is fully priced in (barely) for the June 17 meeting, which will be Chaired by Kevin Warsh if he’s confirmed in time. For the year, pricing is up to 57 bps from 48 bps at the start of the week in light of soft employment data. Next week we get non-farm payrolls. This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight The Fed’s hints at potential rate cuts in 2026 are stirring the pot for traders, especially those in the forex and bond markets. If inflation stabilizes or the labor market weakens, we could see a shift in monetary policy that impacts everything from USD strength to bond yields. Right now, traders should keep an eye on inflation metrics and employment reports, as these will be pivotal in determining if the Fed follows through on its rate cut plans. But here’s the kicker: while the prospect of lower rates might seem bullish for equities, it could also signal underlying economic weakness. If workers feel they’re on a ‘knife’s edge’, it suggests a fragile job market that could lead to volatility. Traders should be cautious about jumping into long positions without considering the broader economic context. Watch for key inflation data releases and labor market reports in the coming months, as these will likely dictate market sentiment and trading strategies. 📮 Takeaway Keep an eye on inflation and labor market reports; they could dictate the Fed’s rate cut timeline and impact USD and bond markets significantly.

UMich February consumer sentiment 57.3 vs 55.0 expectedCanada January employment report -24.8K vs +7.0K expectedJensen Huang: This is a once-in-a-generation infrastructure build outFed’s Jefferson says jobs market is stabilizing and inflation should moderateFed’s Daly: Must watch both sides of mandate, situation feels precariousFed’s Daly says she leans towards more cuts in 2026BoE’s Pill: There’s a risk that we draw too much comfort from dip in inflationUS-Iran talks over “for now”Markets:S&P 500 up 2.0%Russell 2000 up 3.8%US 10-year yields flat at 4.20%WTI crude up 19-cents to $63.48Gold up $183 to $4953Bitcoin up $6850 to $69,957AUD leads, JPY lagsWhat a week.There was no whimper at the end of it either as Friday’s trading was hugely volatile but the relief that nearly all the price action was risk positive. US equities posted a huge rebound and bitcoin nearly recouped Thursday’s gigantic loss as it rose 11.5%. Gold and silver also joined in the rebound.There wasn’t a particular catalyst, though the market did appear to like what Jensen Huang said on TV. The main driver (I think) was a re-think on software and how likely and how quickly it will be disrupted by AI. The market also seems to be able to look past megacap capex now that we’re through earnings. Amazon finished down 5.6% but that was a recovery from a more than 10% loss earlier. It also finished just above $210, which had previously been a big support level.In FX, the Australian dollar rose for the third week in a row and rallied nearly a full figure. The fallout from this week’s rate cut is paying dividends as international investments and mining continue to shine. The market is looking for an island of stability and seems to have found it in the south pacific. The dollar was generally lower and that aided a relief rally in the euro and sterling. The yen continued to lag though ahead of this weekend’s critical election. Watch for volatility at the open next week.For the oil market, the Iran-US meeting seemed to leave the big issues unresolved but there appears to be a likelihood of further meetings so we punt for now. Oil didn’t selloff though, in part because of a WSJ report saying that Iran refused to give up uranium enrichment or move it out of the country. This article was written by Adam Button at investinglive.com. 🔗 Source 💡 DMK Insight Consumer sentiment is up, but job reports are mixed—here’s what that means for ADA. The University of Michigan’s consumer sentiment index came in at 57.3, beating expectations, which could signal a more optimistic outlook for spending. However, Canada’s employment report shows a loss of 24.8K jobs, far worse than the anticipated gain. This divergence highlights a complex economic backdrop that could influence market sentiment. For ADA, currently at $0.27, traders should be cautious as these mixed signals can lead to volatility. If the Fed leans towards rate cuts, as suggested by Daly, we might see a short-term boost in risk assets, including cryptocurrencies. But don’t ignore the potential downside. If inflation remains stubborn despite these cuts, ADA could face selling pressure. Watch for key support around $0.25; a break below that could trigger further declines. Conversely, if sentiment improves and ADA breaks above $0.30, it could attract more buyers. Keep an eye on upcoming economic indicators and Fed comments—they’ll likely dictate market direction in the near term. 📮 Takeaway Monitor ADA closely; a drop below $0.25 could signal further weakness, while a rise above $0.30 may attract buyers.

China gold reserves at the end of January 2026: 74.19 million troy ouncesIn December 2025: 74.15 million troy ouncesChina gold reserves value at the end of January 2026: $369.58 billionIn December 2025: $319.45 billionAmid the surging run higher in prices to start the year, the value of China’s gold reserves have jumped up significantly in January. That as they increase the total amount they hold by just a bit once more.As a reminder, the numbers we’re seeing above are just what is “officially” reported. There is a strong consensus that Beijing has been buying way more gold than what is being advertised here. Independent estimates from the likes of the World Gold Council suggest that China’s actual holdings may be double what they are reporting.So, make what you will of the numbers above. But if anything else, it does tell us a rather clear market trend. And that is central bank buying in gold continues to ramp up over the past two years.Amid fiscal concerns in major economies alongside the de-dollarisation push, that will just continue to keep this driver active as central banks stick with gold buying.Despite the sharp pullback in the past week or so, gold prices are still up nearly 15% for the year so far. The early selling in Asia yesterday was met with solid dip buying conviction, with gold ending nearly 4% higher on the day to $4,964.The next big test for gold buyers remains trying to secure a firm break above $5,000 once more. The highs last week were thwarted near $5,100 with the daily close falling back under the big figure. This article was written by Justin Low at investinglive.com. 🔗 Source 💡 DMK Insight China’s gold reserves just hit $369.58 billion, and here’s why that matters: The increase in gold reserves signals a strategic pivot as China continues to bolster its gold holdings amid global economic uncertainty. With reserves rising from 74.15 million to 74.19 million troy ounces, this trend could indicate a shift in monetary policy or a hedge against inflation. For traders, this is a crucial moment to watch how gold prices react, especially if they break key resistance levels. If gold continues to rally, it could pull other precious metals along for the ride, impacting silver and platinum prices as well. But there’s a flip side: if the market perceives this as a sign of economic instability, we might see a rush into the dollar, which could put downward pressure on gold. Keep an eye on the $1,900 per ounce level for gold; a sustained breakout above this could lead to further gains. Conversely, a drop below $1,850 might signal a reversal. Watch for how institutional players react to these developments, as their movements can create significant volatility in the market. 📮 Takeaway Monitor gold prices closely, especially the $1,900 resistance level; a breakout could lead to further gains, while a drop below $1,850 may signal a reversal.

The Pound Sterling (GBP) recovers on Friday, up by 0.60% as the US Dollar (USD) makes a U-turn, erasing Thursday’s losses amid a risk-on mood. At the time of writing, GBP/USD trades at 1.3604, yet is poised to finish the week with a 0.56% loss. Read More… 🔗 Source 💡 DMK Insight GBP’s 0.60% recovery today signals potential volatility ahead, especially with GBP/USD at 1.3604. The recent U-turn of the USD, which reversed Thursday’s losses, reflects a broader risk-on sentiment that could influence currency pairs. Traders should note that despite today’s gains, GBP/USD is still set to close the week down 0.56%. This mixed performance suggests a tug-of-war between bullish sentiment and underlying bearish pressure. If GBP/USD can hold above 1.3600, it might attract more buyers, but a drop below could trigger further selling. Look for key economic indicators next week, particularly from the UK, which could sway sentiment. A stronger-than-expected UK economic report could push GBP higher, while disappointing data might reinforce the current bearish trend. Keep an eye on the 1.3550 support level; a breach there could lead to a deeper correction. 📮 Takeaway Watch GBP/USD closely; a hold above 1.3600 could signal a bullish reversal, while a drop below 1.3550 might trigger further selling pressure.

(This story was corrected on February 6 at 17:10 GMT as it mistakenly mixed statements from officials of the Bank of England and the Federal Reserve. The story shouldn’t have been published.) 🔗 Source 💡 DMK Insight So, a major news outlet just dropped a story mixing up the Bank of England and the Federal Reserve, and here’s why that matters: misinformation like this can create volatility in the forex markets. Traders often react to headlines without digging deeper, which can lead to knee-jerk reactions in currency pairs. If you’re trading GBP/USD or EUR/USD, be on alert for erratic movements as the market digests this confusion. Look, the broader context here is that central bank communications are crucial for market sentiment. With inflation concerns still looming, any miscommunication can exacerbate fears or lead to false confidence. If traders start speculating based on incorrect information, we could see unexpected spikes or drops. Keep an eye on the economic calendar for upcoming Fed and BoE announcements; these will be critical in shaping market direction. Here’s the flip side: while this mix-up might cause short-term volatility, it could also present buying opportunities for those who can identify the real trends. Watch for key support and resistance levels in the GBP/USD around 1.2000 and 1.2200, as these could be pivotal in the coming days. 📮 Takeaway Monitor GBP/USD closely for volatility around 1.2000 and 1.2200 as traders react to central bank communications.

MUFG Bank analysts Lin Li, Michael Wan, and Lloyd Chan note that Japan’s 8 February election is reinforcing weakness in the Japanese Yen, with USD/JPY drifting back toward 160 after a brief correction. 🔗 Source 💡 DMK Insight Japan’s upcoming election is putting pressure on the Yen, and here’s why that’s crucial for traders: With USD/JPY nearing 160, the market’s sentiment is clearly leaning towards a weaker Yen. This isn’t just about the election; it’s also tied to broader economic indicators like Japan’s inflation rates and the Bank of Japan’s monetary policy stance. If the Yen continues to weaken, it could trigger a wave of carry trades, where investors borrow in Yen to invest in higher-yielding currencies. This could further amplify USD/JPY’s upward momentum. Traders should keep an eye on the election results and any comments from the Bank of Japan, as these could provide critical signals for short-term volatility. On the flip side, if the election leads to unexpected results or a shift in policy, we could see a rapid correction in the Yen. Watch for key support levels around 158.50; a break below that could signal further weakness. In the immediate term, monitor the daily charts for signs of overbought conditions, which could indicate a potential pullback. The real story here is how the election’s outcome might reshape market expectations around Japanese monetary policy. 📮 Takeaway Watch USD/JPY closely; a break above 160 could trigger increased carry trade activity, while support at 158.50 is critical to monitor for potential reversals.

Amazon (AMZN) stock is holding onto an 8% loss late into Friday’s morning session, the first regular session since CEO Andy Jassy released the company’s fourth-quarter results. 🔗 Source 💡 DMK Insight Amazon’s 8% drop post-earnings is a wake-up call for traders: The market’s reaction to CEO Andy Jassy’s fourth-quarter results signals deeper concerns about growth and profitability. An 8% loss in a single session isn’t just a blip; it reflects investor skepticism about Amazon’s ability to maintain its previous momentum amid rising costs and competitive pressures. Traders should be wary, as this could indicate a shift in sentiment, especially if the stock fails to hold above key support levels. Look for the $100 mark as a critical level; a break below could trigger further selling pressure. Additionally, keep an eye on related sectors like e-commerce and cloud computing, as they often move in tandem with Amazon. If competitors like Shopify or Microsoft react negatively, it could compound the issue. On the flip side, if Amazon can stabilize and show resilience, it might present a buying opportunity for those willing to take a risk. Watch for any signs of recovery in the coming days, particularly in the context of broader market trends. 📮 Takeaway Monitor Amazon’s price action around the $100 level; a break below could lead to increased selling pressure.

Silver (XAG/USD) trades firmly higher on Friday and hovers around $76.20 at the time of writing, posting gains of 3.50% on the day. 🔗 Source 💡 DMK Insight Silver’s surge to $76.20, up 3.50% today, signals a potential shift in market sentiment. This uptick could be tied to broader economic concerns, particularly inflation fears and geopolitical tensions that often drive investors toward safe-haven assets like silver. Traders should keep an eye on the $75 support level; a solid hold here could indicate further bullish momentum. If silver breaks above $77, it might attract more buying interest, potentially pushing it toward previous resistance levels. On the flip side, if we see a pullback below $75, it could trigger stop-loss orders, leading to a quick sell-off. For those trading silver, monitoring the daily chart for volume spikes and RSI levels will be crucial. A sustained rally could also impact related markets, like gold, which often moves in tandem with silver. Keep an eye on macroeconomic indicators and news that could influence market sentiment in the coming days. 📮 Takeaway Watch for silver to maintain above $75; a break above $77 could signal further gains, while a drop below $75 may trigger selling pressure.