Market Highlight 12/02/2026
U.S. nonfarm payrolls for January surprised to the upside, rising by 130,000 to the highest level in 13 months, while the unemployment rate fell to 4.3%. U.S. equities ended slightly lower on Wednesday, with the Nasdaq Composite and Dow Jones Industrial Average edging down. The stronger-than-expected jobs data eased concerns about economic weakness but reinforced expectations that the Federal Reserve may slow the pace of rate cuts. The Dow fell 0.1%, the S&P 500 slipped 0.01%, and the Nasdaq declined 0.16%. U.S. Treasury yields moved higher, and the dollar strengthened against some currencies, as the NFP report reduced market expectations for near-term Fed easing.
Gold prices rose more than 1%. Although gains were briefly pared as markets digested the strong U.S. labor data, steady long-term buying helped gold regain momentum. Spot gold settled at USD 5,078.5 per ounce, up 1.1%. International oil prices rebounded as investors remained concerned about tensions between Iran and the United States, though gains were capped by a sharp increase in U.S. crude inventories last week.
Key Outlook 12/02/2026
The UK is set to release its latest GDP data, with the annual growth rate expected at 1.2% (previously 1.3%). Following last week’s Bank of England policy decision, markets will closely watch incoming economic data to gauge the outlook for future rate cuts. Meanwhile, the pound remains under political pressure amid uncertainty over the prime minister’s leadership, making the GDP release more likely to add volatility to sterling. At the same time, markets remain on the sidelines ahead of tomorrow’s U.S. January CPI report.
Key Data and Events Today:
- 15:00 GB GDP Prel QoQ Q4 ***
- 15:00 GB Industrial and Manufacturing Production MoM DEC **
- 17:00 IEA Monthly Oil Market Report **
- 21:30 US Initial Jobless Claims ***
- 23:00 US Existing Home Sales MoM JAN **
Tomorrow:
- 18:00 EU Balance of Trade DEC**
- 18:00 EU GDP Q4 Yoy Prel ***
- 21:30 US CPI YoY JAN ***
Markets Analysis 12/02/2026
- Resistance: 1.1924/1.1962
- Support: 1.1841/1.1803
EURUSD edged lower after strong U.S. jobs data lifted the dollar, keeping the pair capped below the 1.1924–1.1962 resistance zone. Price is drifting back towards the 1.1841–1.1803 support area, where buyers may attempt to stabilise. A sustained break below 1.1803 would weaken the short-term structure.
- Resistance: 1.3669/1.3746
- Support: 1.3544/1.3482
GBPUSD edged lower as a firmer dollar capped gain, with price repeatedly rejected near the 1.3669–1.3746 resistance zone. The pair is moving towards the 1.3544–1.3482 support area, where near-term demand is being tested. A clear break below 1.3480 would further tilt momentum bearish.
- Resistance: 154.23/154.89
- Support: 152.09/151.44
USDJPY extended losses for a third session as demand for the yen remained firm amid Japan’s post-election backdrop and softer inflation. Technically, rebounds remain capped near the 154.23–154.89 resistance zone, while price is pressing into the 152.09–151.44 support area. A break below 151.44 would open deeper downside risk.
- Resistance: 65.51/65.89
- Support: 63.85/63.46
WTI rose over 1% amid escalating U.S.–Iran tensions, lifting geopolitical risk premiums. Technically, price is moving towards the 65.51–65.89 resistance zone. A firm break could extend gains, while a failure here could trigger a pullback towards the 63.85–63.46 support zone, where buyers previously stepped in.
- Resistance: 5149/5202
- Support: 4930/4877
- Resistance: 88.06/92.19
- Support: 78.23/74.94
Gold climbed above $5,070 and briefly tested $5,100, supported by persistent long-term buying despite strong U.S. jobs data. Technically, the upside is capped at the $5,149–$5,202 resistance zone. A clear break could reopen upside momentum, while pullbacks are likely to find support around $4,930–$4,877.
- Resistance: 50510/50752
- Support: 49715/49469
Dow Futures edged lower as strong U.S. employment data tempered near-term rate-cut expectations. Technically, price stalled near the 50,510–50,752 resistance zone. Failure to reclaim this zone may trigger consolidation, while downside support is seen around 49,715–49,469, where a breakout has occurred.
- Resistance: 25404/25584
- Support: 24867/24641
NAS100 edged lower as weakness in software and communications stocks capped risk appetite. Strong U.S. jobs data reduced expectations of faster Fed easing, weighing on tech valuations. Technically, price remains capped below the 25,404–25,584 resistance zone. Failure to reclaim this zone keeps downside risks towards 24,867–24,641 support.
- Resistance: 69618/71903
- Support: 64505/62181
Bitcoin remained under pressure around $67,000 after stronger U.S. jobs data dampened near-term hopes for a Fed rate cut. Technically, BTC remains capped below the $69,618–71,903 resistance zone. If this zone is held, downside risks persist towards the $64,505 level, with stronger support near $62,181. Markets now await U.S. Jan CPI for direction.
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