Market Highlight 02/02/2026
Wall Street’s main indexes closed lower on Friday as investors viewed President Donald Trump’s nomination of former Federal Reserve Governor Kevin Warsh as a hawkish choice to succeed Federal Reserve Chair Jerome Powell, while also digesting earnings reports and a high inflation reading.
U.S. President Donald Trump’s pick of Warsh as the next Fed Chair sparked a wave of selling across risky assets and sent precious metals tumbling on Friday, while the dollar clawed back its losses from earlier last week.
Gold prices tumbled by more than 7% to break below the $5,000 mark on Friday as the dollar strengthened on the imminent appointment of a new U.S. Federal Reserve Chair, though the safe-haven metal remained set for its biggest monthly gain since 1999 after chalking up multiple record peaks.
Key Outlook 02/02/2026
Investors will monitor US President Trump’s nomination of a new Federal Reserve chairman and key economic data to assess global economic trends and policy direction. Today, eyes are on the US ISM Manufacturing PMI, which is expected to accelerate to 48.3 (previous 47.9), but will remain in contraction.
[Financial data and events of significant concern]
- 09:45 CN Manufacturing PMI JAN **
- 15:00 EU GERMANY Retail Sales MoM DEC **
- 16:55 EU GERMANY Manufacturing PMI Final JAN **
- 17:00 EU Manufacturing PMI Final JAN **
- 17:30 GB Manufacturing PMI Final JAN **
- 22:45 US Manufacturing PMI Final JAN ***
- 23:00 US ISM Manufacturing PMI JAN ***
Tomorrow
- 11:30 RBA Interest Rate Decision ***
- 12:30 RBA Press Conference ***
- 23:00 US JOLTs Job Openings DEC **
Markets Analysis 02/02/2026
- 1.1890/1.1964 Resistance
- 1.1777/1.1711 Support
The greenback remained on the front foot in early Asian trade on Monday, and EUR/USD stayed
below 1.1850 as Fed policy signals weighed on sentiment. EURUSD is currently attempting to hold support at the 10-day moving average. If it is above this level, it may rebound towards 1.1900; otherwise, it may further test support at 1.1777/1.1711.
- 1.3744/1.3807 Resistance
- 1.3605/1.3543 Support
As the market digested Trump’s announcement of his nominee for Federal Reserve Chair, the pound fell to a three-day low against the dollar on Friday, trading around 1.3700. A break below this level would signal increased downward pressure and could open a lower range towards 1.3605/1.3543.
- 155.79/156.65 Resistance
- 154.92/153.85 Support
The Japanese yen fell 0.4% to 155.39 per dollar on Monday, pressured in part by the dollar’s strength and Takaichi’s weekend comments, which appeared to condone a weaker currency. The USD/JPY pair recorded its biggest rebound since late December last Friday, but the intraday high was at the 10-day moving average. If it encounters resistance, it may fall back below the 154 level.
US crude oil futures (MAR)
- 64.63/65.57 Resistance
- 61.63/60.71 Support
Oil prices fell 3% on Monday as U.S. President Donald Trump said over the weekend that Iran was “seriously talking” with Washington, signalling de-escalation with an OPEC member after the risk of a military strike had pushed prices to multi-month highs. Currently, WTI is approaching the 10-day moving average and may defend the $62 mark.
- 4940/5066 Resistance
- 4534/4410 Support
- 92.15/97.81 Resistance
- 73.83/68.27 Support
Gold extended its losses on Monday, pressured by a firm dollar, as investors assessed U.S. President Donald Trump’s Fed chair pick, Kevin Warsh, on interest-rate cuts, while silver recovered from a more than three-week low hit on Friday. Gold has broken below the 10-day and 20-day moving averages on the daily chart, so be aware of the possibility of further corrections that could push it below $4,600.
- 49222/49438 Resistance
- 48538/48326 Support
With Warsh nominated as the next chairman of the Federal Reserve, the three major U.S. stock indexes closed lower on Friday. The Dow Jones Industrial Average recovered most of its losses after hitting a more than one-week low, finding support before approaching its previous relative low. However, it may currently be blocked by resistance near the 49,000 level, where the main daily moving averages are clustered.
- 25825/26009 Resistance
- 25236/25054 Support
NAS100 fell on Friday as Warsh’s nomination raised concerns that the prospect of a Federal Reserve rate cut might be hampered. It opened lower on Friday but attempted to recover some losses. Technically, it faces resistance around the 25,500 level, supported by the 10- and 20-day moving averages. If it remains below this level, further downward movement towards the 25,000 level could provide support.
- 79225/81251 Resistance
- 76090/74496 Support
Bitcoin fell to as low as $81,104 last Friday, the lowest since November 21, while the U.S. dollar gained after former Federal Reserve Governor Kevin Warsh was selected as the next Fed chair. Some investors and traders are concerned that this might tighten cash in the financial system. Technically, BTC is approaching the bottom of the downward channel and is seeking support in the $76090/74496 range.
Enjoy trading! The content is for reference only. Please ensure that you understand the risk.
