Daily Market Analysis By FXOpen

ETFs vs Mutual Funds: Differences and Advantages



Exchange-traded funds (ETFs) and mutual funds are two of the most popular investment options, each offering unique features and advantages. While both provide access to diversified portfolios, their differences in structure, management, and trading make them suitable for different strategies. This article breaks down the key distinctions between exchange-traded funds vs mutual funds and how to choose between them.

What Are ETFs?
Exchange-traded funds, or ETFs, are investment vehicles that allow traders to access a diverse range of assets through a single product. An ETF is essentially a basket of investments—such as stocks, bonds, or commodities—that typically tracks the performance of an index, sector, or specific theme. For example, SPDR S&P 500 ETF Trust (SPY) follows the S&P 500 index, providing exposure to the largest companies listed on US stock exchanges.
What sets ETFs apart is how they’re traded. Unlike mutual funds, which are only bought or sold at the end of the trading day, ETFs trade on stock exchanges throughout the day, just like individual shares. This means their prices fluctuate as demand and supply change, giving traders the flexibility to enter or exit positions at market prices.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Market Analysis: GBP/USD and EUR/GBP Fall Into The Red

GBP/USD failed to climb above 1.2500 and trimmed all gains. EUR/GBP is declining and trading below the 0.8400 support level.
Important Takeaways for GBP/USD and EUR/GBP Analysis Today
· The British Pound is showing bearish signs below 1.2400.
· There is a short-term declining channel forming with resistance near 1.2280 on the hourly chart of GBP/USD at FXOpen.
· EUR/GBP is declining and showing bearish signs below 0.8400.
· There is a key bearish trend line forming with resistance at 0.8370 on the hourly chart at FXOpen.

GBP/USD Technical Analysis



On the hourly chart of GBP/USD at FXOpen, the pair started a fresh decline from the 1.2470 zone. As mentioned in the previous analysis, the British Pound struggled to extend gains and declined below the 1.2360 support level against the US Dollar.

There was a clear move below the 1.2320 level. The pair even settled below the 1.2300 level and the 50-hour simple moving average. The pair tested the 1.2250 support zone.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Trump’s Tariffs Push USD/CAD to a 22-Year High


As promised during his election campaign, US President Donald Trump introduced tariffs just two weeks after his inauguration:
→ 25% on goods from Canada and Mexico, prompting both countries to vow retaliatory measures.
→ 10% on Chinese goods, with China announcing plans to challenge the decision at the World Trade Organization.
The tariffs will take effect on 4 February. Trump acknowledged potential economic pain but justified the measures as necessary to combat illegal immigration and drug trafficking, arguing that the long-term benefits would outweigh the costs.
Trump’s decision:
→ Led to a decline in US stock indices, as analysts fear a potential trade war and global stagflation (sluggish economic growth amid high inflation). Further tariffs on Europe may follow.
→ Strengthened the US dollar, which gained around 1% against major currencies.
According to the USD/CAD chart, the Canadian dollar is trading around 1.4700 against the US dollar—a level last seen in early 2003.


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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Trump’s Tariffs Push Gold Price Down from Record High



As shown on the XAU/USD chart, gold prices surpassed $2,800 per ounce for the first time in history on 31 January. However, by 3 February, we have seen a pullback from this record high.
Today’s bearish sentiment in gold is driven by the strengthening US dollar, a reaction from currency markets to the tariffs announced by Donald Trump.
This creates a mixed outlook:
→ On one hand, trade war concerns support gold as a safe-haven asset.
→ On the other, a stronger dollar pressures XAU/USD.
According to Reuters, Citi analysts suggest that further tariffs could drive gold prices up to $3,000 per ounce.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Market Insights with Gary Thomson: 3 - 7 February
Market Insights with Gary Thomson: BoE Interest Rates, US & Canada Job Data, Corporate Earnings


In this video, we’ll explore the key economic events, market trends, and corporate news shaping the financial landscape. Get ready for expert insights into forex, commodities, and stocks to help you navigate the week ahead. Let’s dive in!
In this episode:
- BoE Interest Rate Decision
- US Nonfarm Payrolls & Unemployment Rate
- Canada Unemployment Rate
- Corporate Earnings Statements

Don’t miss out—gain insights to stay ahead in your trading journey.
Watch YOUTUBE VIDEO

Watch it now and stay updated with FXOpen.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Analytical EUR to GBP Price Forecasts for 2025 and Beyond



The EUR/GBP exchange rate reflects the relationship between two major global economies, the Eurozone and the UK. Influenced by monetary policies, economic performance, and geopolitical events, this currency pair offers valuable insights into broader market trends. This article explores the pair's historical performance, current dynamics, and the factors shaping its future, providing a comprehensive overview for traders and analysts.

Recent Performance of the EUR/GBP Pair
The euro and the pound sterling are two of the world’s most widely traded currencies, each representing regions with significant global economic influence. The euro, introduced in 1999, is the official currency of the Eurozone, consisting of 20 EU member states. It is a symbol of economic integration, with its value often reflecting the collective strength of its member economies.

The pound sterling, on the other hand, holds the title of the world’s oldest currency still in use, serving as the backbone of the UK’s economy and maintaining historical significance as a former global reserve currency.
The EUR/GBP exchange rate has experienced strong volatility since the UK decided to leave the European Union in June 2016, causing the pound to fall sharply against the euro. EUR/GBP surged from 2016’s open price of 0.737 to a high of 0.93 in October of the same year.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

AAPL Shares Drop Amid Trump’s Tariffs Despite Strong Earnings



Last week, Apple (AAPL) reported quarterly earnings that exceeded analyst expectations:
→ Earnings per share: $2.40 (expected: $2.35)
→ Revenue: $124.3 billion (expected: $124.2 billion)
Zacks analysts called the results “favourable,” yet Apple’s stock movement tells a different story:
→ On 31 January, shares opened with a bullish gap around $247, briefly improving AAPL’s weak start to the year.
→ By 3 February, the stock closed near $227, marking a 7.4% decline over just two sessions.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

USD/CNH Chart Sees Spike in Volatility Due to Tariffs



In response to the Trump administration's 10% tariff on Chinese goods, Beijing vowed to challenge the decision at the World Trade Organization.
Moreover, Chinese authorities have:
→ imposed retaliatory tariffs of 15% on US coal and liquefied gas, and 10% tariffs on oil and agricultural machinery;
→ launched an investigation into Google for potential anti-competitive practices.
These recent developments have triggered a spike in volatility for the Chinese yuan against the US dollar. As the USD/CNH chart shows today, the ATR indicator is at its highest level since early November, when Trump celebrated his election victory.
On 9 January, in our analysis of the USD/CNH exchange rate, we noted:
→ the importance of the 7.35 level, which had acted as resistance for several months;
→ according to Wang Tao, chief economist at UBS China, the yuan may weaken to 7.6 per dollar by the end of 2025 if the Trump administration imposes higher tariffs.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Popular Hedging Strategies for Traders in 2025



Hedging strategies are key tools for traders seeking to potentially manage risks while staying active in dynamic markets. By strategically placing positions, traders aim to reduce exposure to adverse price movements without stepping away from potential opportunities. This article explores the fundamentals of hedging, its role in trading, and four hedging strategies examples across forex and CFDs.

What Is Hedging in Trading?
Hedging in trading is a risk management strategy that involves taking positions designed to offset potential losses in an existing investment. This concept of hedging in finance is widely used to reduce market volatility’s impact while maintaining the potential opportunity for returns. Rather than avoiding risk entirely, traders manage it via hedging strategies, meaning they have protection against unexpected market movements.

So, what are hedges? Essentially, they are investments used as protective measures to balance exposure. For example, a trader holding a CFD (Contract for Difference) on a rising stock might open a position on a correlated asset that moves in the opposite direction. If the stock’s price falls, returns from the offsetting position can potentially reduce the overall impact of the loss.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Dollar Retreats from Record Highs After Trade Tariff Delay



The start of the current trading week was marked by price gaps in many currency pairs. The announcement of trade tariffs on Canada, Mexico, and China, made by the Trump administration over the past weekend, led to a sharp surge in the USD against other currencies. The USD/CAD currency pair reached new highs for 2020, EUR/USD briefly traded around 1.0200, while sellers of GBP/USD attempted to push the price below 1.2300.
On Monday, it was announced that Canada, the US, and Mexico had agreed to postpone the introduction of tariffs, which consequently led to an immediate closure of the price gaps that had formed after the market opened.

USD/CAD
A sharp rise in USD/CAD to 1.4800, followed by an equally sharp pullback from the highs, contributed to the formation of a "bearish engulfing" pattern on the daily timeframe. At present, the price is trading above 1.4300. Technical analysis of USD/CAD suggests a potential downward correction if the price firmly establishes itself below 1.4280.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

NZD/USD Analysis: Recovery from 27-Month Low



This morning, New Zealand’s labour market data was released, showing unfavourable results. The unemployment rate rose to 5.1% in Q4, the highest since Q3 2020, signalling economic slowdown and reinforcing expectations of a rate cut by the Reserve Bank of New Zealand at its meeting in late February.
However, the weak labour market figures were widely anticipated and already priced in. A greater source of uncertainty is the ongoing trade war between the US and China, a key trading partner for both Australia and New Zealand.
Donald Trump stated that he is "in no rush" to speak with Xi Jinping after China retaliated against the 10% US tariffs on Chinese imports.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Market Analysis: EUR/USD Recovers While USD/CHF Takes Hit



EUR/USD started a fresh increase above the 1.0310 resistance. USD/CHF declined and now struggling below the 0.9120 resistance.
Important Takeaways for EUR/USD and USD/CHF Analysis Today
· The Euro started a decent recovery wave from the 1.0210 zone against the US Dollar.
· There was a break above a connecting bearish trend line with resistance at 1.0340 on the hourly chart of EUR/USD at FXOpen.
· USD/CHF declined below the 0.9160 and 0.9120 support levels.
· There was a break below a major bullish trend line with support at 0.9100 on the hourly chart at FXOpen.

EUR/USD Technical Analysis

On the hourly chart of EUR/USD at FXOpen, the pair started a recovery wave after a major decline, as mentioned in the last analysis. The Euro cleared the 1.02700 resistance to move into a short-term bullish zone against the US Dollar
The bulls pushed the pair above the 50-hour simple moving average and 1.0310. The pair cleared the 50% Fib retracement level of the downward move from the 1.0467 swing high to the 1.0210 low.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

PepsiCo (PEP) Shares Drop 4.5% After Earnings Report



Yesterday, PepsiCo Inc. (PEP) released its investor report, which delivered mixed results.
Positive highlights:
→ Earnings per share ($1.96) exceeded expectations ($1.94).
→ Gatorade strengthened its market position.
→ Mountain Dew Baja Blast generated $1 billion in annual revenue.
→ International revenue grew by 2.1%.
→ The company announced a 5% dividend increase and expects growth in the protein drinks segment in 2025.
Negative factors:
→ Revenue ($27.78 billion) fell short of forecasts ($27.9 billion).
→ North American sales are declining, with Quaker Foods sales down 6%.
→ Foreign exchange fluctuations are weighing on overall revenue.
Investors reacted negatively, and by the end of the trading session, PepsiCo's stock price dropped by 4.5%.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

The Evolution of Forex Trading Platforms and the Market



Forex trading has come a long way since its early days. From manual cash exchange and institutional trading to simple, user-friendly online platforms available for everyone. This FXOpen article explores how technology has transformed forex trading and how AI-based algorithms are used to analyse market data today.

Early Days of Forex Trading
The history of forex trading in the world is long, dating back to ancient times when people traded goods and services across borders. However, the modern forex market as we know it today began in the 1970s after the collapse of the Bretton Woods system. Since then, currencies have been allowed to float freely against each other.
In the early days, forex trading was performed manually, and the role of financial institutions was significant. However, manual methods had their challenges and limitations, such as the lack of real-time data and the need for human intervention.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

UPS Share Price Plunges to a 4.5-Year Low



Last week, United Parcel Service (UPS)—one of the world's largest parcel delivery, supply chain management, and courier service companies—released its quarterly report.
→ Earnings per share: Actual = $2.75, Expected = $2.53
→ Total revenue: Actual = $25.4 billion, Expected = $25.3 billion
Despite EPS exceeding forecasts by over 8%, UPS shares plunged to $110, a level last seen in mid-2020 when the US economy was recovering from the pandemic.
Investor Disappointment Over Amazon Cutbacks
The stock decline was driven by UPS’s decision to further reduce its business with Amazon. The company stated that its 2025 revenue would be around $6 billion below analysts’ expectations due to halving the volume of Amazon parcels it processes—despite Amazon being its largest customer.
UPS CEO Carol Tomé explained that the company wants to move away from Amazon as profit margins in this segment are too low, negatively impacting overall profitability.
According to The Wall Street Journal (WSJ), UPS management is under pressure from dissatisfied investors, a significant portion of whom are long-serving company employees. Due to UPS's unique shareholder structure, veteran employees—who control 63% of voting rights—have suffered billions in collective losses due to the stock's decline.
Shortly after releasing the report, UPS announced a quarterly dividend increase from $1.63 to $1.64 per share, though this is unlikely to offset the stock’s 40% decline over the past three years.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

USD/CAD Exchange Rate Stabilises



As we reported on 3 February, the decision by the US president to impose 25% tariffs on goods imported from Canada sent the USD/CAD rate soaring to a 22-year high.
However, after a round of negotiations between Donald Trump and Justin Trudeau, the tariff implementation was postponed by a month, which was reflected in the USD/CAD exchange rate chart.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Yen and Euro Test Strategic Levels



The downward correction of the US currency, which began after the postponement of the tariffs announced by Trump, continues to gain momentum. The EUR/USD currency pair is trying to consolidate above 1.0400, sellers of USD/JPY have managed to test 152.00, and the GBP/USD pair is preparing for a possible breakthrough of the December 2024 extremes at 1.2570–1.2540.

EUR/USD
The closure of the "gap" (price break) on Monday allowed EUR/USD buyers to form a "bullish marubozu" on the daily timeframe. Literally the day after the combination was formed, the pair continued to rise and managed to consolidate above the key resistance level of 1.0400. The upcoming trading sessions are crucial for determining the further direction of EUR/USD. If the price moves above 1.0470–1.0440, we may see a continuation of the upward retracement, with the primary target being the 1.0600–1.0540 range. In the event of the price consolidating below 1.0300, a retest of recent extremes at 1.0200 is possible.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Economic Factors That Affect the Forex Market



The foreign exchange market is influenced by a wide range of economic factors which have a significant impact on currency exchange rates. Knowing about these factors is crucial for anyone looking to trade in the forex market, as they can help analyse price movements.
This FXOpen article explores some key factors that may affect the forex market and lead to changes in the rates of currency pairs. You’ll learn about the influence of macroeconomic statistics, capital markets, economic data, and more. These factors collectively contribute to the volatility and dynamics of the forex market.

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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Ford (F) Share Price Drops to a 4-Year Low


As shown by the Ford (F) share price chart today, the price has fallen to $9.25 – its lowest level since early 2021.
This drop occurred following the publication of the quarterly earnings report on 5 February:
→ Earnings per share: Actual = $0.39, Expected = $0.34;
→ Gross revenue: Actual = $48.2bn, Expected = $47.4bn.

Despite the report exceeding expectations, investors were disappointed by the company’s weak forecasts for 2025.
The decline in Ford’s share price was further exacerbated when on 6 February, S&P Global Ratings announced that, according to their analysts:
→ Progress on cost reduction is slower than expected;
→ Price pressures are rising, and labour costs remain high;
→ Ford Motor Co.’s margin growth will be limited until 2026.
As a result, S&P revised its outlook for Ford’s debt rating from stable to negative, citing "weaker-than-expected profitability prospects."



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Crude Oil Price Hits New 2025 Low



As shown on the XBR/USD chart, the price of Brent crude oil dropped to $73.92 yesterday:
→ this marks a new low for 2025;
→ the decline since 15 January exceeds 9%.
Bearish sentiment is being driven by Trump's policies. According to Reuters, the Brent crude price is falling due to:
→ US President Donald Trump’s renewed trade war with China;
→ threats of tariff hikes for other countries;
→ high oil inventory levels in the US;
→ Trump’s promise yesterday to increase US oil production.

Additionally, the US Treasury Department announced yesterday that it was imposing new sanctions on several individuals and tankers involved in delivering millions of barrels of Iranian crude oil to China each year, adding to the volatility of Brent crude prices.
Could the Brent crude price continue to fall?
From a technical analysis perspective of the XBR/USD chart, we can see that the price has dropped to a key support level around $75 per barrel. At this level, bulls had the upper hand, managing to break a major resistance line at the end of 2024. It is possible that bulls remain strong in this price range, and the long lower wick on the candlestick—marked with a blue arrow—supports this idea.



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Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.