The Japanese Yen (JPY) retains bullish bias for the second straight day and trades near its highest level in over a week against a broadly weaker US Dollar (USD) during the first half of the European session on Tuesday. 🔗 Source 💡 DMK Insight The JPY’s bullish momentum against the USD is significant, especially as it holds near recent highs. This trend reflects a broader weakness in the USD, which traders should monitor closely. The JPY’s strength could be attributed to various factors, including Japan’s economic resilience and potential shifts in monetary policy. If the JPY continues to gain, it may challenge key resistance levels, prompting traders to reassess their USD positions. Look for any economic data releases from Japan or the US that could further influence this dynamic. On the flip side, if the USD shows signs of recovery, it could quickly reverse the JPY’s gains. Traders should keep an eye on the 1-week high for the JPY, as a break above this level could signal further bullish potential. Watch for volatility in the forex market, especially if geopolitical tensions or economic indicators shift unexpectedly. 📮 Takeaway Monitor the JPY’s resistance levels closely; a break above recent highs could signal further strength against the USD.

Commerzbank’s Michael Pfister discusses Euro strength and its implications for EUR/USD and ECB policy. Pfister expects stronger ECB reactions only if Euro appreciation becomes significantly more pronounced. 🔗 Source 💡 DMK Insight Euro strength is gaining traction, and here’s why that matters for traders: Michael Pfister’s insights suggest that the ECB might react more aggressively if the Euro continues to appreciate. This could impact the EUR/USD pair significantly, especially if we see a breakout above key resistance levels. Traders should keep an eye on the 1.10 mark for EUR/USD, as a sustained move above this could trigger bullish momentum. Moreover, if the Euro’s strength is tied to broader economic indicators, such as inflation or employment data from the Eurozone, it could lead to a shift in ECB policy sooner than expected. But here’s the flip side: if the Euro strengthens too quickly, it could hurt exports, leading to a more cautious ECB. This creates a delicate balance for traders to navigate. Watch for any comments from ECB officials in the coming weeks, as they could provide clues on future policy adjustments. The immediate focus should be on how the Euro reacts to upcoming economic data releases and whether it can hold above the critical levels. 📮 Takeaway Monitor the EUR/USD around the 1.10 level; a breakout could signal bullish momentum, while ECB comments may hint at policy shifts.

West Texas Intermediate (WTI) Oil price continues to trade higher for a third consecutive session, trading near $64.20 per barrel during early European trading on Tuesday. 🔗 Source 💡 DMK Insight WTI Oil’s rise to around $64.20 per barrel signals a potential shift in market sentiment. This upward momentum comes after a series of supply concerns and geopolitical tensions that have kept traders on edge. If WTI can maintain this level, it could attract more bullish positions, especially as we approach the end of the month when traders often adjust their portfolios. Watch for resistance around $65, which could trigger profit-taking or short positions if breached. Conversely, a drop below $63 might indicate a reversal, prompting caution among long holders. It’s also worth noting that this rally could have ripple effects on related markets, particularly energy stocks and the broader commodities sector. If oil prices continue to climb, expect to see increased volatility in these correlated assets, as institutional players may adjust their strategies accordingly. Keep an eye on the weekly chart for any emerging patterns that could signal a longer-term trend. 📮 Takeaway Watch for WTI Oil to hold above $64; a break above $65 could trigger bullish momentum, while a drop below $63 may signal a reversal.

DBS Group Research highlights that its FX risk score has fallen to the lowest level since late 2021, driven mainly by a weaker US Dollar in early 2026 after a 9.4% depreciation in 2025. 🔗 Source 💡 DMK Insight DBS’s FX risk score hitting a low signals potential volatility shifts ahead. The significant 9.4% depreciation of the US Dollar in 2025 is a key factor here, suggesting a shift in market sentiment that could impact currency pairs heavily tied to the dollar. Traders should be cautious as this could lead to increased volatility in forex markets, particularly for USD-based pairs. With the FX risk score at its lowest since late 2021, it’s worth considering how this might affect your positions. If you’re trading USD/JPY or EUR/USD, keep an eye on support and resistance levels that could be tested as the dollar weakens further. On the flip side, a weaker dollar might boost commodities priced in USD, so watch for potential rallies in gold or oil as well. The immediate focus should be on how the market reacts in the coming weeks, especially if the dollar continues to slide. Key levels to monitor include any significant breakouts or reversals in major currency pairs, which could signal where the market is heading next. 📮 Takeaway Watch for volatility in USD pairs as the dollar weakens; key levels to monitor include support and resistance in USD/JPY and EUR/USD.

The GBP/JPY cross attracts sellers for the second straight day and slides back closer to the overnight swing low during the early part of the European session on Tuesday. Spot prices, however, remain confined in a one-week-old range and currently trade just above mid-212.00s. 🔗 Source 💡 DMK Insight GBP/JPY’s recent slide hints at a potential breakdown, and here’s why that’s crucial for traders: The pair’s retreat towards the overnight swing low suggests increasing selling pressure, especially as it hovers just above the mid-212.00s. This range-bound behavior over the past week indicates indecision, but a sustained move below this level could trigger further selling, opening the door to a test of lower support levels. Traders should keep an eye on the broader market sentiment and any economic data releases that could influence the yen or pound, as these could provide the catalyst for a breakout. Additionally, if the pair breaks below the recent low, it might attract more sellers, leading to a potential cascade effect in related currency pairs. On the flip side, if GBP/JPY manages to hold above the mid-212.00s, it could signal a buying opportunity for those looking to capitalize on a rebound. Watch for any bullish reversal patterns on the daily chart, as they could indicate a shift in momentum. Overall, traders should monitor the mid-212.00s closely for potential trading signals. 📮 Takeaway Keep an eye on the mid-212.00s; a break below could signal further downside, while holding above may present a buying opportunity.

By now, investors are familiar with the massive and rapid expansion of artificial intelligence (AI) and high-performance computing. 🔗 Source 💡 DMK Insight AI’s rapid growth is reshaping market dynamics, and here’s why traders need to pay attention: the tech sector is seeing unprecedented investment, which could lead to volatility in related assets. As companies integrate AI into their operations, we might witness shifts in earnings forecasts, impacting stock prices across sectors. This isn’t just about tech stocks; traditional industries are also adapting, which could create ripple effects in commodities and currencies tied to these sectors. Look for key indicators like earnings reports from major tech firms and any regulatory news that could affect AI development. If you’re trading stocks, keep an eye on the NASDAQ for potential breakouts or pullbacks. For forex traders, the USD could react to shifts in investor sentiment as tech stocks rise or fall. The real story is how AI’s influence could lead to unexpected correlations across markets, so staying agile is crucial. Watch for any significant announcements or earnings surprises in the coming weeks, as these could trigger sharp movements in both equities and related forex pairs. 📮 Takeaway Monitor tech earnings and AI-related news closely; significant shifts could impact NASDAQ and USD volatility in the near term.

Here is what you need to know on Tuesday, February 10: 🔗 Source