BCA Research has warned that yen carry trades could become a "ticking time bomb" and unwind suddenly if market conditions change, In this strategy, investors borrow low-yielding yen to buy higher-yielding assets abroad, but if risky assets fall or the yen strengthens, the trade reverses quickly, Analysts have highlighted the possibility of a shock similar to 2008, 2015, and 2020 and recommend that medium- and long-term investors take long positions in yen against the dollar, Given the potential for a Bank of Japan rate hike and recent yen gains, if the currency begins to strengthen, a broad unwind of carry trades could cause a significant yen surge.

The US January employment report is expected to provide a clearer picture of the actual pace of labor market slowdown and likely, with annual revisions, show that hiring was significantly slower than previous estimates, Preliminary estimates indicate a major downward adjustment in last year’s employment data, which could change the Federal Reserve’s view of the labor market and the path of interest rates, Economists expect monthly job growth of about 69,000 and an unemployment rate holding around 4.4 percent, indicating labor market weakness.

The US jobs report across all sectors exceeded expectations and surprised the market, The US economy added 130,000 jobs in January and the unemployment rate fell to 4.3%, Wage growth was also 0.4% which was above expectations and will likely support demand in the coming months, These data will likely incline the Federal Reserve to keep interest rates steady in the short term and the market has pushed the timing of the first rate cut to summer, Following this data, the dollar strengthened sharply.

After meeting with Netanyahu, Trump said he emphasized continuing negotiations with Iran in a three-hour session, He said no definitive result was achieved, but if possible, a deal with Iran would be Washington’s preferred option, Trump also expressed hope that Iran would act more reasonably and responsibly this time and that the talks would reach a conclusion, Oil fell 1.5% in reaction to this news.