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03.02.202614:40 Forex Analysis & Reviews: US Market News Digest for February 3

Relevancia 07:00 2026-02-04 UTC--5

Markets stay calm awaiting Warsh, S&P 500 hits new highs

Exchange Rates 03.02.2026 analysis

Investors remain in a wait-and-see mode ahead of the expected arrival of Kevin Warsh as Fed chair. Despite talk of potentially firmer anti-inflation rhetoric, the market is not pricing in extreme scenarios. Market participants prefer to wait for concrete signals on interest rates and the Fed's balance sheet rather than react to personnel speculation alone.

In the short term, equity markets continue to be supported by strong US macro data and solid corporate reports, led by Apple, which have boosted demand for the largest stocks. Against this backdrop, the S&P 500 has moved close to historical highs, while volatility remains subdued. The market is still focused on current earnings and liquidity rather than contingent monetary policy risks. Follow the link for more details.

Bitcoin posts fourth straight monthly decline and loses investor confidence

Exchange Rates 03.02.2026 analysis

The crypto market remains under pressure. Bitcoin closed its fourth consecutive month of declines, losing almost 40% from record levels. A lack of sustainable demand and weak buyer activity have formed a prolonged downtrend that the market has not yet been able to reverse.

Particular concern surrounds institutional behaviour. Many institutions are trimming positions or exiting the asset entirely, citing the absence of catalysts for a recovery. The loss of faith in "digital gold" increases downside pressure on prices and raises the risk of further capitulation if macro and financial conditions remain tight. Follow the link for more details.

Dollar gains on expectations of tougher Fed, gold under pressure

Exchange Rates 03.02.2026 analysis

The US currency resumed its advance after Fed-related news and the possible nomination of Kevin Warsh. Markets have priced in a firmer monetary policy scenario more actively, which pushed yields higher and increased demand for the dollar as a source of yield advantage.

Against this backdrop, safe-haven assets came under pressure. Gold and some alternative instruments fell as markets revised interest rate expectations. Such moves often create short-term trends in FX and commodity markets, where traders exploit high news sensitivity, including via InstaSpot trading solutions designed for immediate market reaction. Follow the link for more details.

US dollar holds steady, but long-term risks mount

Exchange Rates 03.02.2026 analysis

Despite local swings and rising political risks, the US dollar remains at historically high levels and continues to serve as the primary reserve currency. In the short term, its position is supported by expectations of a hawkish Fed and high yields.

Over a longer horizon, however, uncertainty is increasing around the US currency and external policy moves. Warnings about potential steps by the Trump administration raise new questions about the dollar's future role as a safe-haven asset, prompting investors to pay closer attention to the composition of currency exposures and to strategic risks. Follow the link for more details.

Irina Maksimova,
Analytical expert of InstaSpot
© 2007-2026
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