Economic Indicators to Watch

GOLD -GOLD has retracted after approaching recent highs, with markets maintaining consolidation levels ahead of the September meetings and the Core PCE Price Index m/m release later this evening. We expect some movement following the data release—especially if the outcome is lower than expected, which could bolster rate cut bets by 50 bps.

SILVER - No changes in our outlook for SILVER, which remains within the consolidation zone as market expectations dominate. Analysts and traders are waiting for the right moment to move the markets and initiate sells on the Dollar.

DXY - The Dollar has rebounded after finding sufficient support at previous lows. However, the market movement remains corrective and consolidated, leading us to continue expecting a decline in this market.

GBPUSD -The Pound is currently stagnant, forming a potential SHS (head and shoulders) pattern. We anticipate another reversal pattern to break this consolidation and resume the bullish trend. However, there is also potential for the bearish movement to continue, driven by market expectations of rate cuts by the BOE.

AUDUSD -The Aussie Dollar continues to rise, currently sitting at 0.67978. While other currencies remain consolidated, the Aussie shows appropriate levels of trading that suggest continued buying. However, we remain aware that a rate cut by the RBA in the coming months could affect the Aussies strength.

NZDUSD -The Kiwis strength is highlighted in recent trading, showing significant growth in market confidence following positive economic prospects in New Zealand. Currently, the NZD shows the greatest strength among all other currencies.

EURUSD - The Euro is showing weakness after pulling back into the consolidation zone between 1.113386 and 1.10361. The market is currently forming an M pattern, which may push prices down. The rate cut news from the FED could cause a brief spike in price before a decline as investors gradually shy away from risk-on assets.

USDJPY -The Yen is currently stagnant, lacking the conviction to push trades lower as economic prospects weaken following the BoJ‘s cautious approach to future rate hikes. While the overall economy remains stable, several factors are contributing to the Yen’s immediate weakness. Beyond the expected delay in rate cuts, concerns about potential earthquakes and storms in Japan are causing investors to adopt a more cautious stance. Additionally, there is an expectation that the Yen has a ceiling on its strength, suggesting that the market might have a floor where prices will consistently rebound.

USDCHF - The Franc has weakened slightly after yesterdays trading, experiencing a correction as prices reached oversold levels. We still see strength in the Franc, but current levels indicate a technical correction. However, we note that a W pattern has completed in this market, suggesting the possibility of a bullish run in the near term before the rate cuts.

USDCAD - The Loonie is currently at 1.34803, showing a technical correction upward before continuing its downward trend. We remain positive on the Loonie, especially as the outlook for further buying of Light Crude and Brent Crude Oil continues to improve.