Market Drivers and Trends

Factores de Impacto en los Mercados

Market Drivers and Trends: Investors and traders anticipate a week filled with significant economic events
that could shape global market trends.

From Eurozone inflation indicators to U.S. employment reports and the Bank of England’s interest rate decision,
these factors could directly impact currencies, stocks, and precious metals.

In this report, we will highlight the most important economic data and its potential market impact,
along with a technical analysis of gold, the U.S. dollar, stock indices, and major currency pairs.

Content

Economic Reports
Gold
Dollar Index

USDJPY

EURUSD

Dow Jones

 

Economic Reports

Monday, February 3, 2025

Manufacturing PMI (January) – 17:45 GMT-United States

ISM Manufacturing PMI (January) – 18:00 GMT-United States

Tuesday, February 4, 2025

JOLTS Job Openings (December) – 18:00 GMT-United States

Wednesday, February 5, 2025
ADP Non-Farm Employment Change (January) – 16:15 GMT-United States

Services PMI (January) – 17:45 GMT-United States

ISM Non-Manufacturing PMI (January) – 18:00 GMT-United States

Thursday, February 6, 2025
Bank of England Interest Rate Decision (February) – 15:00 GMT-United Kingdom
Initial Jobless Claims – 16:30 GMT-United States

Friday, February 7, 2025

Average Hourly Earnings (MoM) (January) – 16:30 GMT-United States

Non-Farm Payroll Report (January) – 16:30 GMT-United States

Unemployment Rate (January) – 16:30 GMT-United States

Foreign Exchange Reserves (USD) (January) – 19:08 GMT-China


Gold

Gold reached a new all-time high last week, trading around $2,817,
as market tensions escalated due to fears surrounding tariffs and their impact on global inflation.
The metal closed around $2,797, and it is expected to continue its upward movement
this week if it remains stable above the $2,800 level, targeting $2,817, and potentially $2,845.

 

U.S. Dollar Index 

The U.S. Dollar Index rebounded last week following the Federal Reserve’s decision to hold interest rates steady,
supporting the index.
From a technical perspective, if the index breaks above the 108.50 resistance level and closes higher,
the bullish momentum could extend toward 109.40.
However, if reversal price action appears around current levels, a downside correction could occur,
bringing the index back to test 107.70 before resuming its upward trend.

 

 

USDJPY (U.S. Dollar vs. Japanese Yen)

The pair saw some gains toward the end of last week,
supported by a stronger U.S. dollar following the Fed’s rate decision.
However, the downside bias remains the dominant scenario,
given expectations that the interest rate gap between the two countries may narrow.
Technically, the pair is expected to see an upward correction toward 155.92 before resuming a new bearish wave targeting 153.22.

 

 

 

 

EURUSD (Euro vs. U.S. Dollar)

The pair resumed its downward movement as the dollar strengthened after the Federal Reserve’s rate hold,
combined with the European Central Bank’s rate cut.
Additionally, a bearish reversal pattern has formed on the 4-hour chart,
with the price breaking below 1.0370, supporting further declines toward 1.0268.
If this level is breached, the downward trend could extend toward 1.0183.

 

Dow Jones Index

Signs of weakness started to appear in the Dow Jones towards the end of last week,
as it failed to break above the all-time high of 45,055.
Reversal price action indicated a potential downward correction toward 44,000.
However, the index may resume its uptrend after this correction.

 

Market Drivers and Trends