Market Overview - Page 33

The US dollar decreased to its lowest level since January due to reports of a delay in US tariffs. This news overshadowed the Federal Reserve's hawkish shift and inflation increase.

US stocks have remained stagnant despite a strong economy, while European indices have been hitting new highs. This difference in performance is explained by the divergence in monetary policy and the effects of a high base and inflated expectations in the US.

Despite rising inventories, oil prices rose for the third trading session, driven by higher gas prices in Europe and reduced oil supply from US sanctions against Russia's shadow fleet.

The dollar's difficulty in rising could signal a reversal, but its upward trend is not broken yet, with support from Fed policy and strong macroeconomics.

This week, key events to watch for include Fed Chief Powell speaking to Congress, US CPI release, UK GDP estimates, and US retail sales.

Gold has been rising steadily, reaching all-time highs and showing a 2.5% gain in the past week. This is in contrast to other markets which have been more unstable. Silver, while still below its previous peaks, has also been performing well recently.

The Bank of England has cut its key rate by 25 points to 4.5% and suggested further cuts may be on the way, leading to pressure on the British pound. Market expectations are now for three more rate cuts this year.

German industry is showing signs of growth and improvement, with industrial orders and production increasing, offering hope for the Eurozone economy.

The latest ADP jobs report shows continued strong growth in the US labour market, with 183K new jobs created in the private sector. While manufacturing continues to suffer, the overall economy is resilient.

The new week will focus on the US labour market and the UK rate decision. On Tuesday, 4 February, the focus is on the new US job opening statistics. The indicator’s fall over the past two years was viewed with.

Gold has hit record highs, moving into territory above 2800. Strong buying following the November-December correction suggests the end of the correction phase and the beginning of a new growth cycle. A breakout to new highs activates a Fibonacci expansion.

US indices opened the week with a sharp collapse. The news media unanimously attributed this decline to the strong results of DeepSeek, a Chinese competitor of OpenAI’s ChatGPT. The news that a strong network can be trained on obsolete Nvidia.