S&P 500 bullish reversal on NFPs, and then a giant trap that I covered extensively i nthe premium Telegram channels – as it developed, and the rebound‘s anatomy (betting on it unfolding afterrmarket, was correct). 🔗 Source 💡 DMK Insight The S&P 500’s bullish reversal following the NFP data is a classic case of market manipulation, and here’s why that matters for traders right now. After the initial spike, many traders likely got trapped in a long position as the market reversed sharply. This kind of price action often indicates a liquidity grab, where institutions push prices to shake out retail traders before moving in the opposite direction. For day traders, this highlights the importance of monitoring volume and price action closely, especially around key economic releases like NFPs. Look for signs of exhaustion in the bullish momentum, as a failure to hold above recent highs could lead to a significant pullback. Keep an eye on key support levels; if the S&P breaks below them, it could trigger further selling pressure. On the flip side, if the index manages to reclaim its bullish stance and holds above the recent highs, it could signal a more sustained rally. Traders should watch for confirmation on the daily chart and be ready to adjust their positions accordingly. The real story here is about understanding market psychology and positioning ahead of these volatile events. 📮 Takeaway Watch for S&P 500 to hold above recent highs; failure could lead to a sharp pullback, while a reclaim may signal a sustained rally.

BNY’s EMEA Macro Strategist Geoff Yu highlights a sharp divergence between LatAm (Latin America) and EMEA (Europe, Middle East, and Africa) FX flows, with LatAm seeing six‑month high inflows while EMEA suffers its strongest selling in six months. 🔗 Source 💡 DMK Insight LatAm FX inflows hitting a six-month high while EMEA faces heavy selling is a big deal for traders right now. This divergence signals a potential shift in risk appetite among investors, with LatAm markets attracting capital as they may offer better growth prospects compared to the EMEA region, which is grappling with economic uncertainties. Traders should pay close attention to this trend, as it could lead to increased volatility in currency pairs involving these regions. For instance, if the Brazilian real or Mexican peso continues to strengthen, it could create opportunities for long positions against weaker EMEA currencies like the euro or pound. However, it’s worth noting that such inflows could also be driven by speculative trading rather than fundamental strength, so caution is warranted. Monitoring economic indicators from both regions, such as inflation rates and GDP growth, will be crucial in assessing the sustainability of these trends. Keep an eye on key levels in currency pairs; for example, if the euro dips below a certain threshold against the peso, it might trigger further selling pressure in EMEA currencies. 📮 Takeaway Watch for continued inflows into LatAm currencies and potential euro weakness; key levels to monitor could signal further divergence in FX trends.

The US Dollar (USD) holds around 97 in the American session on Thursday after Wall Street fell sharply on fresh AI-related fears, as the tech sector is far from generating decent profits. 🔗 Source 💡 DMK Insight The USD’s stability around 97 amidst Wall Street’s sharp decline signals a flight to safety, and here’s why that matters: With tech stocks under pressure due to AI-related concerns, traders are likely reallocating funds into the USD, which traditionally serves as a safe haven. This shift could impact forex pairs, especially those involving the Euro and Yen, as they may weaken against the dollar. If the USD maintains this level, it could indicate a broader risk-off sentiment in the market, prompting traders to consider shorting riskier assets or hedging their positions. However, it’s worth noting that the tech sector’s struggles could lead to a broader economic slowdown, which might eventually weigh on the dollar itself. Watch for key support levels around 96.50 and resistance at 98. A break below 96.50 could signal a shift in sentiment, while a bounce back above 98 might indicate renewed confidence in equities. Keep an eye on upcoming economic data releases that could further influence the dollar’s trajectory. 📮 Takeaway Monitor the USD around 97 for potential shifts; a break below 96.50 could signal risk-off sentiment intensifying.

Gold price declines close to 2.7% on Thursday amid the lack of a clear catalyst, as US jobs data during the last couple of days was solid, despite of the number of Americans filing for unemployment benefits rose more than expected. 🔗 Source 💡 DMK Insight Gold’s 2.7% drop signals a potential shift in market sentiment, and here’s why that matters: With SOL trading at $78.45, the decline in gold prices might indicate a risk-off sentiment among investors, pushing them towards alternative assets like cryptocurrencies. The solid US jobs data could be fueling expectations of tighter monetary policy, which often negatively impacts gold as a non-yielding asset. Traders should keep an eye on how this interplay affects SOL, especially if gold continues to weaken. If SOL can maintain support above $75, it might attract buyers looking for a hedge against inflation, especially if gold’s decline persists. On the flip side, if gold rebounds, it could signal a return to traditional safe havens, potentially putting pressure on crypto assets. Watch for key levels in both markets—SOL’s $75 support and gold’s resistance around recent highs. The next few days could be crucial as traders react to upcoming economic indicators, particularly any shifts in unemployment claims or inflation data. 📮 Takeaway Monitor SOL’s support at $75 and gold’s resistance levels; a sustained gold decline could boost crypto interest.

Standard Chartered’s Senior Economist Aldian Taloputra notes that Indonesia’s Q4-2025 GDP rose 5.4% year-on-year, driven by domestic demand and stronger household consumption, lifting full-year 2025 growth to 5.1%. 🔗 Source 💡 DMK Insight Indonesia’s GDP growth hitting 5.4% in Q4-2025 is a key indicator for traders: This uptick, fueled by robust domestic demand and household consumption, signals a strengthening economy. For forex traders, this could mean a bullish outlook for the Indonesian Rupiah (IDR) against major currencies, especially if the trend continues into 2026. Keep an eye on how this growth impacts interest rates; if the central bank responds with tighter monetary policy, it could further bolster the IDR. However, there’s a flip side. If global economic conditions worsen or commodity prices drop, Indonesia’s reliance on exports could dampen this growth. Traders should monitor key levels in the IDR, particularly against the USD, as any significant moves could indicate shifts in market sentiment. Watch for upcoming economic reports and central bank meetings that may provide further clarity on the trajectory of Indonesia’s economy. 📮 Takeaway Watch the IDR closely; a sustained GDP growth trend could push it higher against the USD, especially if interest rates rise.

The Swiss Franc (CHF) continued to appreciate against the US Dollar (USD) on Thursday, following a slightly soft US jobs report overshadowed by Wednesday’s Nonfarm Payrolls print. Despite this, the Greenback has failed to rally and USD/CHF trades at 0.7700, down 0.22%. 🔗 Source 💡 DMK Insight The Swiss Franc’s rise against the US Dollar signals a shift in market sentiment. With USD/CHF trading at 0.7700, the recent soft US jobs report is weighing on the Greenback, suggesting traders are reassessing their positions. This appreciation of the CHF could indicate a flight to safety as investors seek stability amidst economic uncertainty. If the USD fails to regain strength, we might see further downside for USD/CHF, potentially testing key support levels. Keep an eye on the 0.7650 mark, which could trigger more aggressive selling if breached. Additionally, the broader implications for forex traders include potential volatility in related pairs, especially those involving the Euro and other safe-haven currencies. However, it’s worth noting that the market’s reaction could be short-lived if upcoming economic data shifts sentiment back towards the USD. Traders should monitor the next Nonfarm Payrolls report closely, as a strong rebound could reverse the current trend. For now, the CHF’s strength is a signal to watch for potential long positions against the USD, especially if the 0.7650 support holds. 📮 Takeaway Watch for USD/CHF to test the 0.7650 support level; a break could lead to further declines in the USD.

South Korea Export Price Growth (YoY): 7.8% (January) vs 5.5% 🔗 Source 💡 DMK Insight South Korea’s export price growth hitting 7.8% is a big deal for traders right now. This spike from 5.5% signals potential inflationary pressures that could impact the Korean won and related markets. If export prices continue to rise, it might lead to a stronger won, affecting forex pairs like USD/KRW. Traders should keep an eye on how this influences the Bank of Korea’s monetary policy, as higher export prices could prompt interest rate adjustments. Additionally, commodities linked to South Korea’s exports, like semiconductors, might see volatility based on these price changes. Watch for any shifts in the won’s strength against major currencies, especially if it breaks key resistance levels. On the flip side, if global demand weakens, these price increases could backfire, leading to reduced export volumes. So, while the immediate reaction might be bullish for the won, the longer-term implications depend heavily on global economic conditions. Keep an eye on the 1,200 level for USD/KRW as a potential pivot point. 📮 Takeaway Monitor the USD/KRW pair closely, especially around the 1,200 level, as rising export prices could strengthen the won but also pose risks if global demand falters.

South Korea Import Price Growth (YoY) down to -1.2% in January from previous 0.3% 🔗 Source 💡 DMK Insight South Korea’s import price growth dropping to -1.2% is a significant indicator for traders: A negative growth rate suggests deflationary pressures, which could impact the Korean won and related markets. This decline from the previous 0.3% indicates a potential slowdown in demand for imports, possibly reflecting broader economic challenges. Traders should keep an eye on how this affects the Bank of Korea’s monetary policy, especially if inflation continues to trend downward. If the central bank decides to cut rates to stimulate growth, we might see increased volatility in the forex markets, particularly with USD/KRW. Additionally, this could ripple through commodity markets, especially if South Korea’s demand for raw materials decreases. Watch for any shifts in commodity prices that could correlate with this import price trend. The next key level to monitor is how the won reacts against the dollar; a sustained weakening could signal broader economic concerns. Overall, this data point is crucial for short-term forex strategies and could influence longer-term investment decisions in the region. 📮 Takeaway Keep an eye on USD/KRW as South Korea’s import price drop could signal further economic weakness and potential rate cuts.

UOB’s research argues that Thailand’s ability to capture the new wave of global FDI (Foreign Direct Investment) depends less on tax incentives and more on resolving structural bottlenecks. 🔗 Source 💡 DMK Insight Thailand’s FDI landscape is shifting, and here’s why that matters for traders: UOB’s research highlights a crucial pivot away from traditional tax incentives toward addressing structural issues. This could reshape investor sentiment and impact sectors reliant on foreign capital. If Thailand can streamline its processes, we might see a surge in investments, particularly in tech and infrastructure, which could positively influence local equities and related assets. Traders should keep an eye on how these developments affect the Thai Baht and regional markets, especially if SOL’s current price of $78.45 is influenced by broader economic stability in Southeast Asia. But here’s the flip side: if structural reforms lag, it could deter FDI, leading to volatility in Thai markets and potentially affecting cryptocurrencies like SOL that are sensitive to regional economic health. Watch for key announcements from the Thai government regarding reforms and any shifts in FDI flows, as these could signal trading opportunities or risks in the coming weeks. 📮 Takeaway Monitor Thailand’s structural reforms closely; a successful overhaul could boost FDI and positively impact SOL and regional markets in the next few weeks.

New Zealand Business NZ PMI fell from previous 56.1 to 55.2 in January 🔗 Source 💡 DMK Insight The drop in New Zealand’s Business PMI from 56.1 to 55.2 signals a slowdown in economic activity, and here’s why that matters: For traders, this decline could indicate weakening business sentiment, which may lead to a reassessment of growth forecasts for the Kiwi dollar. A PMI below 56 suggests that the economy is losing momentum, which could prompt the Reserve Bank of New Zealand to reconsider its monetary policy stance. If the trend continues, we might see increased volatility in NZD pairs, particularly against the AUD and USD. Keep an eye on related economic indicators, as a sustained downturn could trigger a bearish sentiment shift in the forex market. On the flip side, if the PMI stabilizes or rebounds in the coming months, it could provide a buying opportunity for the NZD. Traders should monitor the next PMI release closely, as any surprise uptick could lead to a short-term rally. Watch for key support levels around recent lows for NZD/USD, as a break below could signal further weakness. 📮 Takeaway Monitor the next NZ PMI release closely; a rebound could signal a buying opportunity for the NZD, while continued weakness may lead to increased volatility.