Global Market Overview: What Traders Should Watch This Week
The first full week of February often sets the tone for the month. Markets transition from January positioning into data-driven conviction, with traders focusing on employment figures, central bank guidance, and risk sentiment.
Key themes for this week:
- Repricing of interest rate expectations
- Volatility around US macroeconomic data
- Rotation between risk assets and safe havens
Equities, forex, and commodities are expected to remain sensitive to headlines, especially as liquidity normalizes after the start-of-year flows.
Financial Calendar Highlights (Week of 02 February 2026)
🔴 High-Impact Events
Monday – 02 February
- Manufacturing PMI releases (US, EU)
- Risk sentiment gauge for equities and USD
Wednesday – 04 February
- ADP Non-Farm Employment Change (US)
- ISM Services PMI (US)
Friday – 06 February
- US Non-Farm Payrolls (NFP)
- Unemployment Rate & Average Hourly Earnings
Historically, NFP week brings increased volatility across USD pairs, gold, and US indices.
How the Financial Calendar Impacts Market Behavior
Economic releases do not move markets equally. Traders should distinguish between:
- Expectation-sensitive data (jobs, inflation)
- Confirmation data (PMIs, secondary indicators)
During NFP weeks, markets often:
- Consolidate early in the week
- Expand volatility mid-to-late week
- Show fake breakouts before the main release
Gold (XAUUSD) Weekly Analysis – Week of 02 February 2026
Fundamental Outlook
Gold remains highly sensitive to:
- US dollar strength
- Treasury yields
- Risk-off sentiment
As employment data approaches, gold often acts as a hedging instrument, attracting flows when uncertainty rises.
If job data surprises to the upside, gold may face short-term pressure due to stronger USD expectations. Conversely, weaker labor data could support gold through rate-cut speculation.
Technical Perspective (Multi-Timeframe)
Weekly Timeframe
- Price remains within a broader consolidation range
- Long-term structure still supported above key demand zones
Daily Timeframe
- Gold shows signs of compression, suggesting an upcoming expansion
- Previous week’s high and low are critical reference levels
Key Technical Zones to Monitor:
- Resistance: Prior weekly highs
- Support: Demand zones formed during recent pullbacks
From experience, gold often makes its decisive move after NFP—not before.
Trading Strategy Considerations for Gold
Rather than predicting direction, professional traders focus on:
- Volatility expansion setups
- Reaction at key levels post-data
Best practices this week:
- Reduce exposure ahead of NFP
- Avoid tight stop-losses during news
- Let the first reaction settle before entering
Market Sentiment Across Other Assets
US Dollar (USD)
- Neutral to bullish bias ahead of jobs data
- Strong reactions expected post-NFP
Equity Indices
- Short-term caution due to valuation sensitivity
- Data-dependent continuation or correction
Cryptocurrencies
- Likely to follow risk sentiment
- Indirectly influenced by USD moves
Key Takeaways for the Week
- The financial calendar is the main volatility driver
- Gold is in a wait-and-react mode ahead of NFP
- Patience and risk management are critical this week
- Focus on reaction, not prediction
Frequently Asked Questions (AEO Optimized)
Is this a good week to trade gold?
Yes, but mainly after major data releases when volatility becomes clearer.
Which event matters most this week?
The US Non-Farm Payrolls on Friday.
Should traders hold positions over NFP?
Only with proper risk management and reduced position size.
References & Educational Sources
- Federal Reserve Economic Data (FRED)
- CME Group Economic Calendar
- World Gold Council – Gold Market Insights
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