This website is managed by Ultima Markets’ international entities, and it’s important to emphasise that they are not subject to regulation by the FCA in the UK. Therefore, you must understand that you will not have the FCA’s protection when investing through this website – for example:
You will not be guaranteed Negative Balance Protection
You will not be protected by FCA’s leverage restrictions
You will not have the right to settle disputes via the Financial Ombudsman Service (FOS)
You will not be protected by Financial Services Compensation Scheme (FSCS)
Any monies deposited will not be afforded the protection required under the FCA Client Assets Sourcebook. The level of protection for your funds will be determined by the regulations of the relevant local regulator.
Note: UK clients are kindly invited to visit https://www.ultima-markets.co.uk/. Ultima Markets UK expects to begin onboarding UK clients in accordance with FCA regulatory requirements in 2026.
If you would like to proceed and visit this website, you acknowledge and confirm the following:
1.The website is owned by Ultima Markets’ international entities and not by Ultima Markets UK Ltd, which is regulated by the FCA.
2.Ultima Markets Limited, or any of the Ultima Markets international entities, are neither based in the UK nor licensed by the FCA.
3.You are accessing the website at your own initiative and have not been solicited by Ultima Markets Limited in any way.
4.Investing through this website does not grant you the protections provided by the FCA.
5.Should you choose to invest through this website or with any of the international Ultima Markets entities, you will be subject to the rules and regulations of the relevant international regulatory authorities, not the FCA.
Ultima Markets wants to make it clear that we are duly licensed and authorised to offer the services and financial derivative products listed on our website. Individuals accessing this website and registering a trading account do so entirely of their own volition and without prior solicitation.
By confirming your decision to proceed with entering the website, you hereby affirm that this decision was solely initiated by you, and no solicitation has been made by any Ultima Markets entity.
Ultima Markets does not have an establishment in Singapore and does not operate from Singapore.
Ultima Markets does not provide products or services to citizens or residents of Singapore, and account applications from Singapore citizens or residents will not be accepted.
If you are a citizen or resident of Singapore, please do not open an account or use Ultima Markets’ products or services.
By selecting “Acknowledge and Continue Browsing”, you confirm that you are accessing this website on your own initiative and that your access is not the result of any direct marketing, targeted advertising, solicitation, or promotional activity by Ultima Markets.
Nothing on this website constitutes an offer, solicitation, or promotion of products or services in any jurisdiction where such activity is prohibited. You are responsible for ensuring that your access to and use of this website complies with applicable local laws and regulations.
Defensive Rotation: Tech Dumps while Dow Jumps; All Eyes on ECB & BoE
Defensive Rotation: Tech Dumps while Dow Jumps; All Eyes on ECB & BoE
shawn
Ultima Markets Daily Market Insights – February 5, 2026
A clear “Changing of the Guard” is happening in US equity markets. While the “AI Trade” faces scrutiny following weak guidance from major chipmakers and software firms, capital is aggressively rotating into defensive and value sectors. This pushed the Dow Jones higher yesterday even as the Nasdaq crumbled.
The macro picture remains mixed: Yesterday’s ADP report was a shocker (22K vs 48K expected), signaling a cooling labor market, yet the ISM Services PMI remained resilient (53.8), suggesting the broader economy is not falling off a cliff. This divergence leaves traders hanging in the middle as the NFP report has been cancelled due to the earlier US government partial shutdown.
Market Rotation: Tech to Dow
The Nasdaq 100 slid over 1.5% yesterday, dragged down by software and semiconductor weakness. In contrast, the Dow Jones closed higher, benefiting from flows into Healthcare, Industrials, and Banks.
Investors are questioning the immediate ROI of massive AI spending, especially with ADP showing cracks in the labor market. Consequently, investors prefer companies with steady cash flows (Value) over high-growth speculative tech.
Outlook: Expect this divergence to continue. With the NFP out of the picture tomorrow, the “value” trade likely outperforms as tech may remain in risk aversion mode.
NAS100, Daily | Ultima Markets MT5
Over on the NAS100, the 25,000 level continues to be a key level to watch, and the recent falls have seen the Nasdaq move into a rangebound pattern. Holding above 25,000 would see the index continue in a rangebound state, while a break below would signal the start of a deeper pullback.
Gold Outlook: The Battle at $5,000
On the other end, Gold is locked in a fierce battle around the psychological $5,000 mark. After reclaiming $5,000 earlier, Gold is struggling to break significantly higher, facing heavy resistance near $5,050 – $5,080.
XAU/USD, H4 Chart | Ultima Markets MT5
Resistance: $5,000 – $5,100 is the immediate “kill zone.” A clear close above this is needed for Gold to target higher.
Support: $4,800 is the intraday floor; a break below this level exposes Gold to a sell-off into a lower zone.
In overall, the Gold is expected to remain in consolidation. With $5000 remain the major kill zone for now.
What to Watch Today: The Central Bank Double-Header
Bank of England (BoE) Rate Decision (12:00 PM GMT):
Forecast: HOLD at 3.75%.
The Play: Markets are pricing in a cut by April. If Governor Bailey sounds “dovish” and hints at an earlier cut due to cooling inflation, GBP/USD could plunge.
European Central Bank (ECB) Rate Decision (1:15 PM GMT):
Forecast: HOLD at 2.00%.
The Play: Inflation is at near target (2%), but growth is weak. Watch President Lagarde’s press conference. If she emphasizes “downside growth risks,” the Euro weakens.
Outlook on EURUSD
EURUSD, H4 Chart | Ultima Markets MT5
1.1800 remains a crucial support ahead of the ECB. The outlook remains cautiously bearish. The divergence between the resilient US economy (ISM Services) and the stagnation in Europe favors the Dollar.
However, key support lies in the 1.1800 – 1.1740 zone. If the ECB delivers a hawkish hold, the Euro could gain strength, while a weaker Dollar could also bring this support zone into play.
Outlook on GBPUSD
GBPUSD, H4 Chart | Ultima Markets MT5
Similarly, GBP/USD is trading flat near 1.3650. The pair remains highly volatile. The Pound is vulnerable if the BoE signals they are ready to join the global cutting cycle.
However, for now, the market expects the BoE to remain cautious on any further easing cycle, which could keep the Pound supported.
Levels: Key support at 1.3600. Resistance at 1.3710.
Disclaimer
Comments, news, research, analysis, price, and all information contained in the article only serve as general information for readers and do not suggest any advice. Ultima Markets has taken reasonable measures to provide up-to-date information, but cannot guarantee accuracy, and may modify without notice. Ultima Markets will not be responsible for any loss incurred due to the application of the information provided.
Thank you for visiting the Ultima Markets website. Please note that this website is intended for individuals residing in jurisdictions where access is permitted by law. Ultima and its affiliated entities do not operate in your home jurisdiction.
By clicking ‘Acknowledge’, you confirm that you are entering this website solely on your own initiative and not as a result of any specific marketing outreach. You wish to obtain information from this website based on reverse solicitation principles, in accordance with the applicable laws of your home jurisdiction.
