Three markets to watch next week (31.01.2025)

We are about to start a new month in the financial markets. February is likely to be just as interesting as January. The key topics that remain in the focus of investors include U.S. trade policy, accelerating innovations in the AI sector, and macroeconomic data. In the coming week, investors can expect another wave of crucial information. Starting Wednesday, U.S. labor market data will be released. Throughout the next week, we will receive PMI reports from various countries' manufacturing sectors, while Trump is expected to make further key political decisions. For these reasons, it will be worth keeping an eye on the US100 stock index, the USDCAD currency pair, and GOLD.

US100

Investor emotions in the technology sector is at its peak. After a real rollercoaster ride last week, the index managed to recover its losses. This week, we will receive more key data. On Wednesday and Friday, labor market reports will be published—ADP and NFP, respectively. Additionally, we are in the midst of earnings season on Wall Street, which has so far not disappointed investors, with industry leaders reporting record-breaking results. The AI and semiconductor sectors remain at the center of attention, with groundbreaking innovations emerging daily. For this reason, it will be worth watching the US100 technology stock index in the coming week.

USDCAD

Volatility in the U.S. dollar may increase due to the release of crucial labor market data, which, alongside inflation, is closely monitored by the Fed. On the other hand, USDCAD may also be affected by news regarding U.S. tariffs on imported goods from Canada. Trump has repeatedly raised the issue of 25% tariffs on Mexico and Canada.

GOLD

Gold reached new record highs above $2,800 per ounce this week. The record surge in gold prices reflects market uncertainty driven by U.S. trade policy, interest rates, and currency fluctuations. The upcoming week is expected to continue the current trends. Therefore, it will be worth monitoring GOLD, especially since it is hovering around historical highs.