The Liberal Democratic Party (LDP) under Prime Minister Sanae Takaichi achieved a historic victory in Japan’s general election on February 8, 2026, securing a two-thirds supermajority in the Lower House. 🔗 Source 💡 DMK Insight Japan’s recent election results could shake up the markets, especially if the LDP pushes through economic reforms. With a supermajority, Prime Minister Takaichi has the power to implement policies that could impact the yen and Japanese equities significantly. Traders should keep an eye on the Nikkei 225 and USD/JPY pairs, as any announcements regarding fiscal stimulus or regulatory changes could lead to volatility. Historically, such political shifts can lead to a bullish sentiment in local markets, but they also come with risks if the reforms don’t materialize as expected. Watch for key resistance levels in the Nikkei around 30,000 and support in USD/JPY near 110. If the LDP’s agenda aligns with market expectations, we could see a rally; if not, a sharp correction might follow. So, here’s the thing: while the election outcome is positive on the surface, the real test will be how effectively the LDP can translate this victory into actionable economic policy. Keep your eyes peeled for any statements from Takaichi in the coming weeks that could provide clarity on their agenda. 📮 Takeaway Monitor the Nikkei 225 for resistance at 30,000 and USD/JPY support near 110 as Takaichi’s policies unfold.

Carnival Corporation (CCL) has staged an impressive move higher since its Liberation Day lows, and it’s been a run that’s hard to ignore from a technical standpoint. From those lows, the stock is now up more than 119%, showing clear momentum and renewed strength on the chart. 🔗 Source 💡 DMK Insight Carnival Corporation’s 119% surge from its lows is more than just a number—it’s a technical breakout that traders need to pay attention to. This kind of momentum often attracts both retail and institutional investors, especially as it signals a potential shift in market sentiment towards travel and leisure stocks. The recent rally could be fueled by improving consumer confidence and easing travel restrictions, which are critical factors for CCL. Traders should keep an eye on key resistance levels; if CCL can hold above its recent highs, it might pave the way for further gains. However, a pullback could also be on the horizon, especially if broader market conditions shift. On the flip side, while the bullish momentum is compelling, it’s worth questioning whether this rally is sustainable. Overbought conditions could lead to profit-taking, so monitoring volume and volatility will be crucial. Watch for any signs of weakness around the 50-day moving average, as a drop below that could trigger a sell-off. Overall, CCL’s performance is a bellwether for the travel sector, so keep an eye on correlated assets like airlines and hotel stocks as well. 📮 Takeaway Watch Carnival Corporation closely; a hold above recent highs could signal further gains, but a drop below the 50-day moving average may prompt profit-taking.

ING’s Chief Economist for Greater China, Lynn Song, highlights that Taiwan’s exports surged in January 2026, with growth reaching the fastest pace since 2010, supported by the tech boom and Lunar New Year timing. 🔗 Source 💡 DMK Insight Taiwan’s export surge is a game changer for traders focused on tech stocks and regional currencies. With exports growing at their fastest since 2010, this signals robust demand for Taiwanese tech products, likely boosting companies like TSMC and impacting the broader semiconductor sector. Traders should watch for potential upward pressure on the TWD as increased export activity strengthens the currency. This could also influence related markets, such as South Korean tech stocks, which often move in tandem with Taiwanese performance. However, be cautious; while the Lunar New Year typically boosts exports, it can also lead to volatility as traders react to seasonal patterns. Keep an eye on key technical levels for TWD and major tech stocks, especially if they approach resistance points. The next few weeks will be critical as we assess whether this growth is sustainable or just a seasonal spike. 📮 Takeaway Watch for TWD strength and potential impacts on Taiwanese tech stocks as export growth continues; key resistance levels are critical to monitor.

EUR/USD rallies over 0.80% on Monday as the Greenback treads water following breaking news that Chinese authorities recommended financial institutions to trim their positions on US Treasuries, due to sharp volatility swings in the fixed income markets. 🔗 Source

HSBC analysts note that Indian equities and the Rupee lagged the recent emerging market rally but may be at a turning point. Progress on a US‑India trade deal, following an EU agreement, has boosted stocks and sentiment. 🔗 Source 💡 DMK Insight Indian equities and the Rupee could be on the verge of a breakout, and here’s why that matters: Despite lagging behind the broader emerging market rally, recent developments around a US-India trade deal are shifting sentiment. This could catalyze a stronger performance in Indian stocks, particularly if the Nifty 50 index breaks above key resistance levels. Traders should keep an eye on the 18,000 mark for the Nifty, as a sustained move above this level could signal a bullish trend. Additionally, the Rupee’s performance against the Dollar could see improvement, especially if foreign inflows increase as a result of this trade deal. However, it’s worth noting that while optimism is building, there are risks. If the trade deal faces delays or complications, we could see a quick reversal in sentiment. The broader context of rising inflation and potential interest rate hikes in the US could also impact foreign investment flows into India. So, watch for any news on the trade negotiations and monitor the Nifty’s performance closely over the next few weeks to gauge potential entry points. 📮 Takeaway Watch the Nifty 50 for a breakout above 18,000; a trade deal could drive bullish momentum in Indian equities and the Rupee.

The Pound Sterling retreats 0.21% during the North American session as political turmoil in the UK, surrounding the Prime Minister Keir Starmer, pushed the GBP/JPY downwards. At the time of writing, the cross-pair trades at 213.51 after reaching a daily high of 214.44. 🔗 Source 💡 DMK Insight GBP/JPY’s drop amid UK political chaos is a signal traders can’t ignore. The 0.21% retreat reflects growing uncertainty around Prime Minister Keir Starmer’s leadership, which could lead to increased volatility in the Pound. With the cross-pair currently at 213.51, traders should watch for a potential break below 213.00, which could trigger further selling pressure. The recent high of 214.44 now serves as a resistance level, and any failure to reclaim this point could solidify bearish sentiment. But here’s the flip side: if Starmer manages to stabilize his position, we could see a quick rebound. Keep an eye on political developments and market reactions, as they could create sharp moves in the GBP/JPY. Also, monitor related assets like UK government bonds, as shifts in yields could impact the Pound’s strength against the Yen. The next few sessions are critical for determining the direction of this pair. 📮 Takeaway Watch for GBP/JPY to hold above 213.00; a break below could signal further declines, while stabilization around Starmer’s leadership may lead to a rebound.

AUD/USD is trading near three-year highs after a strong break above the 0.7000 psychological level for the first time since February 2023, supported by the Reserve Bank of Australia’s (RBA) surprise 25 basis point rate hike to 3.85% at its February meeting. 🔗 Source 💡 DMK Insight AUD/USD just broke above 0.7000, and here’s why that matters: The RBA’s unexpected rate hike to 3.85% is a game changer, pushing the Aussie dollar to levels not seen in three years. This move not only strengthens the AUD but also signals a shift in monetary policy that traders need to watch closely. With the pair now trading above the psychological barrier of 0.7000, it opens the door for further upside potential, particularly if the U.S. dollar faces headwinds from upcoming economic data or Fed policy shifts. Look for support around 0.6950, which could act as a buffer if profit-taking occurs. But don’t overlook the flip side: if global risk sentiment deteriorates or commodity prices drop, the AUD could quickly reverse. Traders should keep an eye on correlated assets like gold, which often moves with the AUD due to Australia’s status as a major exporter. Watch for any signs of weakness in the U.S. economy, as that could further bolster the AUD in the near term. 📮 Takeaway Monitor the 0.6950 support level in AUD/USD; a sustained hold above 0.7000 could lead to further gains, especially if U.S. data disappoints.

Bank of England (BoE) policymaker Catherine Mann said on Monday that US tariffs are feeding into higher UK inflation through Chinese export pricing. 🔗 Source 💡 DMK Insight Catherine Mann’s comments highlight a crucial link between US tariffs and UK inflation, and here’s why that matters: As tariffs on Chinese goods increase, the cost burden is likely shifting to UK consumers, which could push inflation higher than expected. This scenario complicates the BoE’s monetary policy decisions, especially if inflation continues to rise while economic growth remains sluggish. Traders should be wary of how this dynamic could influence GBP/USD and other related currency pairs. If inflation data comes in hotter than anticipated, expect volatility in the forex markets, particularly around key support and resistance levels for the pound. But there’s a flip side: if the BoE decides to tighten policy in response to rising inflation, it could strengthen the pound in the short term. Keep an eye on upcoming inflation reports and any shifts in BoE rhetoric, as these could signal significant trading opportunities. Watch for key levels around 1.30 for GBP/USD, which could act as a pivot point depending on how the market reacts to these developments. 📮 Takeaway Monitor GBP/USD around the 1.30 level as inflation data could trigger significant volatility in response to BoE policy shifts.

The daily chart shows spot Gold in a parabolic uptrend that accelerated sharply from the $4,600 area in late January, printing a record high at $5,598.25 before a violent reversal erased nearly $1,000 in value during the final days of the month. 🔗 Source 💡 DMK Insight Gold’s recent parabolic surge and subsequent $1,000 drop is a wake-up call for traders. The spike to $5,598.25 was impressive, but the sharp reversal indicates extreme volatility and potential overextension. Traders should be cautious; this kind of price action often signals a correction or consolidation phase. Watch for support around the $4,600 mark, as a failure to hold could lead to further declines. The broader market context shows that inflation fears and geopolitical tensions have been driving gold prices, but this recent volatility might shake out weak hands. If you’re in long positions, consider tightening stops to protect gains. On the flip side, if gold stabilizes and begins to recover, it could present a buying opportunity for those looking to capitalize on a rebound. Keep an eye on the daily chart for signs of a bullish reversal, particularly if it can reclaim levels above $5,000. Watch for institutional buying patterns, as they can signal confidence in a recovery. 📮 Takeaway Monitor gold’s support at $4,600; a break below could trigger further declines, while a recovery above $5,000 may signal a buying opportunity.

The daily chart shows NZD/USD completing a broad base-building process after bottoming at 0.5580 in late October 2025, with price now trading at 0.6053, above both the 50 Exponential Moving Average (EMA) at 0.5867 and the 200 EMA at 0.5849. 🔗 Source 💡 DMK Insight NZD/USD’s recent rise to 0.6053 signals a potential trend reversal, and here’s why that matters: After hitting a low of 0.5580 in late October 2025, the pair’s current position above both the 50 EMA and 200 EMA suggests bullish momentum. This base-building phase indicates that traders might be looking to capitalize on a longer-term uptrend. If the price can hold above the 0.6000 level, it could attract more buyers, pushing it towards the next resistance around 0.6200. However, a failure to maintain this level could lead to a quick pullback, especially if broader market sentiment shifts. It’s worth noting that while the current trend looks promising, any significant economic data releases or geopolitical events could create volatility. Traders should keep an eye on the upcoming economic indicators from New Zealand and the U.S. that could impact the NZD/USD pair. Watch for any signs of weakness around the 0.6000 level, as a drop below could trigger stop-loss orders and further selling pressure. 📮 Takeaway Monitor the 0.6000 level closely; a sustained hold could lead to a push towards 0.6200, while a drop below may signal a reversal.