Market Insights Digest: February 5, 2024 - Record Highs, Forex Trends, and Intraday Analysis

DAILY MARKET NEWSLETTER

February 5, 2024

MARKET WRAP: STOCKS, BONDS, COMMODITIES

On Friday, U.S. stocks surged to record highs despite stronger-than-expected jobs data. The Dow Jones Industrial Average gained 134 points (+0.35%) to 38,654, the S&P 500 rose 52 points (+1.07%) to 4,958, and the Nasdaq 100 jumped 298 points (+1.72%) to 17,642.

Key Highlights:

• The U.S. added 353,000 non-farm payrolls in January, exceeding expectations.

• U.S. 10-year Treasury yield rose to 4.024%.

• Meta Platforms (META) surged 20.32%, Amazon.com (AMZN) jumped 7.87%, while Apple (AAPL) closed 0.54% lower.

• In Europe, DAX 40 rose 0.35%, CAC 40 added 0.05%, FTSE 100 slipped 0.09%.

• U.S. WTI crude oil futures declined 2.29% to $72.13 a barrel.

• Gold price fell 0.89% to $2,036 an ounce.

MARKET WRAP: FOREX

The U.S. dollar strengthened across the board on strong labor data and rising Treasury yields. The dollar index climbed to 103.91.

Forex Highlights:

• EUR/USD fell 81 pips to 1.0791.

• USD/JPY jumped 188 pips (+1.28%) to 148.30.

• GBP/USD slid 108 pips (-0.85%) to 1.2634.

• AUD/USD dropped 55 pips (-0.84%) to 0.6514.

• USD/CHF gained 88 pips (+1.03%) to 0.8662, USD/CAD climbed 73 pips (+0.55%) to 1.3457.

• Bitcoin traded on and off around $43,000.

TECHNICAL ANALYSIS: INTRADAY VIEWS

GBP/USD

Intraday: the downside prevails.

• Pivot:1.2665

• Preference:Short positions below 1.2665 with targets at 1.2550 & 1.2520.

• Alternative scenario:Above 1.2665, look for further upside with 1.2700 & 1.2740 as targets.

• Comment:As long as 1.2665 is resistance, expect choppy price action with a bearish bias.

[Analyst Views Chart - Explore More]

USD/JPY

Intraday: bullish bias above 148.00.

• Pivot:148.00

• Preference:Long positions above 148.00 with targets at 149.10 & 149.50.

• Alternative scenario:Below 148.00, look for further downside with 147.65 & 147.30 as targets.

• Comment:Consolidation may continue, but its extent should be limited.

[Analyst Views Chart - Explore More]

EUR/USD

Intraday: under pressure.

• Pivot:1.0810

• Preference:Short positions below 1.0810 with targets at 1.0745 & 1.0720.

• Alternative scenario:Above 1.0810, look for further upside with 1.0840 & 1.0870 as targets.

• Comment:Resistance at 1.0810 increases the risk of a break below 1.0745.

[Analyst Views Chart - Explore More]

Dow Jones (CME)

Intraday: intraday support around 38610.00.

• Pivot:38610.00

• Preference:Long positions above 38610.00 with targets at 38890.00 & 39060.00.

• Alternative scenario:Below 38610.00, look for further downside with 38490.00 & 38390.00 as targets.

• Comment:Next resistances at 38890.00 and then at 39060.00.

[Analyst Views Chart - Explore More]

Please note that due to market volatility, some key levels may have already been reached, and scenarios played out.