Today's Financial Updates

Market Overview

FED mentions to the US central bank that it is prudent to wait several more months for a rate cut to ensure that it really is back on track toward the target of 2%.

On Tuesday, Fed Governor Christopher Waller told the Peterson Institute for International Economics in Washington that he would need to see several more months of good inflation data before he would be comfortable supporting an easing in the stance of monetary policy.

Waller also mentioned that interest rates may need to rise again for demand to soften enough to ease price pressures further, saying the latest inflation data is reassuring and the probability of a rate hike is very low.

Atlanta Fed Chair Raphael Bostic warned against cutting rates too quickly. The Fed, he said, needs to be cautious about approving its first rate cut to be sure it does not touch off pent-up spending among businesses and households, and put the central bank in a position where inflation starts bouncing around.

Fed Chair Jerome Powell, in his press briefing after the Fed held rates steady earlier this month, also ruled out rate hikes.

“What that does is it takes out the tail-risk scenario that the Fed is still thinking about hikes because they are effectively questioning their assumption that rates are restrictive enough,” said Vishal Khanduja, co-head of Broad Markets Fixed Income at Morgan Stanley Investment Management.

Due to the FED's reassurance of no surprises coming into the market, the dollar is holding its ground and not much is happening in the markets in return. We can see this across the board as we view the pairs with the exception of some others that may be affected by their individual economies.

GOLD - The price has stagnated after yesterday's move, staying above 2407.507 and under 2431.705. We continue to call this a bullish market as we see the consolidation as a collection of orders. We may expect a sudden drop for another hit at trying to collect orders at 2392.470.

SILVER - The market is still in a range, collecting orders at the top before a possible continuation for a fall. We expect the price to continue going bullish but, there is a possibility for price to return slightly under 30.938. At the moment, it is still between 30.938 and 32.518.

DXY -The dollar is holding up, consolidating at 104.607. We expect the price to drop soon but as it stands, we wait for how this will play along as a possible high correction may occur. We continue to see a bearish dollar as the technical structure still holds.

GBPUSD -The price action is low in momentum and volume for this market as we see the price consolidate in a small range between 1.27256 and 1.27006. While this may stand as a collection of orders before a continuation up, this may as well be an indication of a lack of confidence for either currencies or the result of the BoE's positivity for a rate cut.

AUDUSD -There has not been much action on this market since yesterday. It has stayed between 0.67142 and 0.66541. We continue to wait to see how the prices will play out.

NZDUSD -The NZD has moved slightly lower than 0.60954 while above 0.60847. Our views on this market have not changed and will wait for further confirmation on how the price will play out.

EURUSD -The price has stagnated and is consolidating at 1.08543. There is now a possibility for price to drop back down toward the trendline as we see a squeeze in the market movement. We expect the explosion of price action to happen soon however, we wait for the price to move out of structure.

USDJPY -The price is consolidating as no apparent move is happening this week. The market is held down by 156.516 and is held up by 155.704. We wait to see how the prices and the market will play out. It is prudent to stay away from the YEN for the time being while waiting for the market to normalize.

USDCHF - Not much change in USDCHF and our call from yesterday remains the same other than the slight break above 0.91087 is something to watch, whether it is an actual break of price or a method to collect orders before a sell.

USDCAD - The CAD showed weakness after the price tested 1.36563. But, the price is still between that structure and 1.36052. We wait to see how the price will continue to play out. However, we are still positive about the USDCAD sell.