The Dow Jones Industrial Average (DJIA) bounced back on Friday, climbing around 220 points to trade near 49,665 after opening at 49,366. The recovery followed Thursday’s punishing 669-point selloff that was driven by fears of AI-led disruption across software, trucking, and real estate sectors. 🔗 Source 💡 DMK Insight The DJIA’s 220-point rebound signals a potential short-term recovery, but traders should be cautious. After a steep 669-point drop, the market’s volatility is heightened, driven by fears surrounding AI disruptions. This bounce could be a dead cat bounce or a genuine reversal, so it’s crucial to watch for confirmation in the coming days. Key resistance levels to monitor are around 49,800, where sellers may re-emerge. If the index can hold above 49,500, it could indicate a shift in sentiment. However, the underlying fears about AI’s impact on various sectors remain, which could lead to further sell-offs if not addressed. Traders should also keep an eye on related sectors like tech and real estate for potential ripple effects, as these areas are particularly sensitive to AI developments. The next few trading sessions will be critical for gauging whether this recovery has legs or if it’s just a temporary respite. 📮 Takeaway Watch for DJIA to hold above 49,500; failure to do so could signal renewed selling pressure amid ongoing AI concerns.

US Treasury Secretary Scott Bessent sounded confident on the inflation outlook, suggesting price pressures could return close to the Fed’s 2% target by mid-year. 🔗 Source 💡 DMK Insight Bessent’s optimism on inflation could shift market sentiment significantly. If inflation does indeed trend back toward the Fed’s 2% target by mid-year, we might see a more hawkish stance from the Fed, which could impact interest rates and the dollar. Traders should keep an eye on the USD’s performance against major pairs, especially if we see a breakout above key resistance levels. This could also ripple through the crypto markets, where a stronger dollar typically pressures prices. However, skepticism remains—historically, inflation forecasts have been overly optimistic. If inflation doesn’t cool as expected, we could see volatility spike, especially in equities and commodities. Watch the upcoming economic indicators closely, particularly CPI data, as they could provide clues on whether Bessent’s outlook holds water. The next few months will be crucial for positioning ahead of potential Fed policy shifts. 📮 Takeaway Monitor upcoming CPI data closely; if inflation trends toward 2%, expect a stronger dollar and potential volatility in crypto and equities.

MUFG’s Senior Currency Analyst Lloyd Chan notes that India’s CPI inflation under the rebased 2024 series rose to 2.8% year-on-year, driven mainly by food prices. 🔗 Source 💡 DMK Insight India’s CPI inflation hitting 2.8% is a key signal for forex traders right now. Food prices are the main driver, and that could impact the Reserve Bank of India’s monetary policy. If inflation continues to rise, it might force the RBI to consider tightening measures sooner than expected, which would strengthen the Indian Rupee against major currencies. Traders should keep an eye on the USD/INR pair, especially if it approaches key support or resistance levels. A sustained rise in inflation could also ripple through to commodities, particularly agricultural products, affecting related markets. But here’s the flip side: if inflation stabilizes or declines, the RBI might maintain a more dovish stance, which could weaken the Rupee. So, watch for any upcoming RBI statements or economic data releases that could shift market sentiment. The next few weeks will be crucial for gauging the direction of the INR, especially as traders react to these inflation numbers. 📮 Takeaway Monitor the USD/INR pair closely; a rise in inflation could lead to a stronger Rupee if the RBI tightens policy.

Standard Chartered’s Edward Lee and Jonathan Koh highlight that Malaysia’s economy grew 5.2% in 2025 after 5.1% in 2024, driven by strong domestic confidence, AI-related investment and accommodative policy. 🔗 Source 💡 DMK Insight Malaysia’s projected 5.2% economic growth in 2025 is a bullish signal for traders: This growth, up from 5.1% in 2024, suggests a robust domestic market, fueled by AI investments and supportive policies. For forex traders, this could mean a strengthening of the Malaysian Ringgit (MYR) against major currencies, especially if domestic confidence continues to rise. Keep an eye on how these economic indicators influence the MYR’s performance, particularly against the USD and SGD. If the MYR strengthens, it could lead to a shift in trading strategies, favoring long positions on MYR pairs. However, it’s worth noting that while growth is promising, it’s essential to monitor global economic conditions that could impact Malaysia, such as commodity prices and geopolitical tensions. Traders should watch for any shifts in monetary policy that could affect liquidity and investment flows. Key levels to watch would be the MYR’s resistance against the USD, which could signal a breakout or reversal depending on upcoming economic data releases. 📮 Takeaway Watch for the MYR’s performance against the USD as Malaysia’s economy grows; a strong domestic outlook could lead to bullish trading opportunities.

MUFG’s Senior Currency Analyst Lloyd Chan notes that Singapore’s FY26 budget marks a strategic pro‑growth pivot, with higher development spending aimed at building national AI capabilities, supporting enterprise funding, and attracting high‑quality capital. 🔗 Source 💡 DMK Insight Singapore’s FY26 budget is a game changer for traders focused on growth sectors. The emphasis on AI capabilities and enterprise funding signals a robust push towards innovation, which could attract foreign investment and strengthen the Singapore dollar. Traders should watch for potential volatility in related markets, particularly tech stocks and currencies tied to emerging technologies. If the Singapore dollar strengthens, it could impact forex pairs like SGD/USD, making it crucial to monitor key resistance levels. Additionally, this budget could set a precedent for other nations, potentially leading to a ripple effect in regional markets as they respond to Singapore’s proactive stance. Keep an eye on how this budget influences investor sentiment in the coming weeks, particularly during earnings reports from tech firms in Singapore, as they may reflect the budget’s impact on growth prospects. 📮 Takeaway Watch for shifts in the Singapore dollar and tech stocks as the FY26 budget unfolds, especially around key resistance levels in SGD/USD.

Gold (XAU/USD) price makes a U-turn on Friday and trims some of Thursday’s losses, rising nearly 2% following the release of a softer-than-expected inflation report in the US, which increased speculation that the Federal Reserve (Fed) could lower rates. 🔗 Source 💡 DMK Insight Gold’s nearly 2% rebound signals a shift in market sentiment, and here’s why that matters: The softer-than-expected inflation report has traders rethinking the Fed’s interest rate trajectory. If the Fed leans toward rate cuts, it could boost gold further, as lower rates typically diminish the opportunity cost of holding non-yielding assets like gold. Watch for resistance around recent highs, as a sustained move above those levels could attract more buyers. On the flip side, if inflation pressures persist, we might see a quick reversal. Traders should keep an eye on the $1,950 level for potential breakout or breakdown signals. A close above this could indicate a bullish trend, while a drop below $1,900 might trigger profit-taking or stop-loss orders. Also, monitor the broader market for any shifts in risk sentiment, as gold often moves inversely to equities. The next few days will be crucial in determining whether this rebound is a short-term blip or the start of a more sustained rally. 📮 Takeaway Watch the $1,950 resistance level closely; a breakout could signal further gains for gold, while a drop below $1,900 might prompt selling.

Standard Chartered’s Senior Economist Tommy Wu raises Taiwan’s 2026 GDP growth forecast to 8.0% from 3.8%, citing strong Q4-2025 expansion and robust global semiconductor demand. 🔗 Source 💡 DMK Insight Taiwan’s GDP growth forecast just jumped to 8.0%, and here’s why that matters: This significant upward revision from Standard Chartered reflects not just local economic resilience but also the global semiconductor market’s strength. With Taiwan being a key player in semiconductor production, this growth forecast could lead to increased foreign investment and a stronger currency, impacting forex traders. If you’re trading the TWD or related assets, keep an eye on how this news influences market sentiment. A bullish outlook could push the TWD higher against major currencies, especially if we see a sustained demand surge in the semiconductor sector. But don’t overlook the flip side—if global demand falters or geopolitical tensions escalate, this growth could quickly reverse. Watch for key economic indicators in Q4-2025 that might signal a shift. Traders should monitor the TWD’s performance closely, particularly around key resistance levels, as any signs of weakness could trigger a sell-off. Immediate focus should be on how this news plays out in the forex market over the next few weeks. 📮 Takeaway Watch the TWD closely; a sustained bullish trend could emerge if semiconductor demand remains strong, especially around key resistance levels.

The US Dollar (USD) lost major ground over the week, briefly gaining some strength after better-than-expected United States (US) jobs data, as the January Nonfarm Payrolls report showed 130K new jobs were added. Also, the Unemployment Rate fell to 4.3% from 4.4%. 🔗 Source 💡 DMK Insight The USD’s recent dip highlights a critical moment for forex traders: Despite a brief uptick from positive jobs data, the overall trend shows weakness. The addition of 130K jobs and a drop in the unemployment rate to 4.3% might suggest a resilient labor market, but it hasn’t been enough to sustain the dollar’s strength. This could signal a shift in trader sentiment, especially as the market weighs the Federal Reserve’s next moves. If the USD continues to falter, it could create opportunities for pairs like EUR/USD or GBP/USD, which may gain traction. Watch for key resistance levels in these pairs, particularly around 1.10 for EUR/USD and 1.30 for GBP/USD, as they could indicate where the dollar’s weakness might stabilize or reverse. On the flip side, if the Fed leans towards tightening in response to this data, we might see a sudden reversal in the dollar’s fortunes. Keep an eye on upcoming economic indicators and Fed statements for clues on potential volatility. The immediate focus should be on how the dollar reacts in the coming days, especially if it tests those resistance levels. 📮 Takeaway Monitor USD pairs closely; watch for resistance at 1.10 for EUR/USD and 1.30 for GBP/USD as key levels to gauge the dollar’s strength.

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted on Friday during an interview with Yahoo Finance that although interest rates are poised to come down further, moves on policy rates are contingent on further taming of services inflation. 🔗 Source 💡 DMK Insight The Fed’s stance on interest rates is shifting, and here’s why that matters for traders: Goolsbee’s comments signal a potential easing of monetary policy, but the emphasis on controlling services inflation suggests a cautious approach. Traders should keep an eye on inflation metrics, especially in the services sector, as they could dictate the timing of any rate cuts. If inflation remains stubborn, the Fed might delay easing, impacting market sentiment and asset prices across equities and bonds. This could lead to volatility in the forex market as traders adjust their positions based on anticipated Fed actions. Look for key inflation reports in the coming weeks; if services inflation shows signs of cooling, it could pave the way for a more aggressive rate cut. Conversely, persistent inflation could lead to a stronger dollar as the Fed maintains a hawkish stance. Watch the USD index closely, as it could react sharply to these developments, influencing trading strategies across various asset classes. 📮 Takeaway Monitor services inflation closely; a decline could trigger rate cuts, impacting USD strength and market volatility in the coming weeks.

Commerzbank analysts explain that India’s new CPI series shows January inflation at 2.8% year-on-year, back within the RBI’s 2–6% target band. The reweighted basket reduces food’s share and should damp volatility. 🔗 Source 💡 DMK Insight India’s January inflation hitting 2.8% is a game-changer for traders focused on the RBI’s monetary policy. With inflation now comfortably within the Reserve Bank of India’s (RBI) target band of 2-6%, we might see a shift in interest rate expectations. This could lead to a more stable environment for the Indian rupee, which has been under pressure from global economic uncertainties. A reweighted CPI basket that reduces food’s share should help dampen volatility, making it a prime time for forex traders to reassess their positions. If the rupee strengthens, it could impact related assets like Indian equities and bonds, which often react positively to lower inflation. But here’s the flip side: if global inflation pressures rise or if the RBI decides to tighten policy too aggressively, we could see a quick reversal. Traders should keep an eye on upcoming RBI meetings and any statements regarding future rate hikes. Watch for key levels around the 82 mark for USD/INR, as a break below could signal further rupee strength. 📮 Takeaway Monitor the USD/INR around the 82 level; a break below could indicate rupee strength as inflation stabilizes.