DBG Markets: Market Report for Nov 14, 2024

Market Overview

CPI data from yesterday came out as forecasted, resulting to an appropriate change to the FED expectations for a rate cut from 60% yesterday to an 82.8% chance of a cut happening this December FED meeting. All eyes now set to watch for PPI numbers to release later this evening to further help us navigate the markets.

GOLD - Gold prices continue to decline as the latest CPI data meets expectations, offering no indication of an anticipated rate cut this December. The rally in the U.S. dollar is reducing the appeal of precious metals, putting further pressure on gold. Currently, both the MACD and RSI indicators reflect a bearish trend, with the RSI signaling an oversold condition. Although this suggests a potential buying opportunity in the future, conditions do not yet favor an entry point. For now, the market seems inclined toward continued downside movement in gold.

SILVER - Silver is also experiencing selling pressure as both the MACD and RSI maintain a bearish trend. The current price action implies a continuation of this decline, influenced by the strengthening dollar. As the dollar rallies, silver's appeal diminishes, aligning with indicators that point to sustained downward momentum.

DXY - The dollar is holding firmly in a bullish trend, as evidenced by our technical indicators: MACD, RSI, and price action all point to further gains. The market is responding positively to anticipated economic policies, including tariffs and pro-growth measures, that are expected to support American economic expansion. As the MACD and RSI approach overbought territory, the indicators suggest potential for continued bullishness in the near term.

GBPUSD - For the British Pound, the MACD is nearing a bearish crossover, aligning with a downward trend in the RSI. This confluence of indicators signals an increased likelihood of continued selling pressure. The setup suggests a potential for further downside, as both indicators reinforce the prospect of bearish momentum. Given this technical alignment, we anticipate the pound will continue to trade lower, with further declines likely as bearish sentiment builds in the market.

AUDUSD - The Australian dollar remains under selling pressure, with both the MACD and RSI confirming a bearish momentum. Price action analysis shows no indication of a slowdown, as the Aussie dollar breaks through multiple significant support levels. This signals a likely continuation of the downward trend, with further selling pressure expected.

NZDUSD - The New Zealand dollar, or Kiwi, is also trending lower, with both MACD and RSI indicators moving into bearish territory. The current price action suggests a strong momentum for further downside, and we anticipate continued selling pressure in the near future as the bearish trend consolidates.

EURUSD - The Euro continues its decline, consistent with our previous expectations. Price action analysis indicates a steady bearish momentum, with both the MACD and RSI aligned in the downward trend. No changes are expected in the near term, as technical indicators support the continued selling pressure on the Euro.

USDJPY - The Yen is showing buying strength, with indicators suggesting an upward continuation. Both the MACD and RSI reflect bullish momentum, as does the current price action. However, fundamental factors—particularly the Bank of Japan's cautious stance on interest rate hikes—contribute to a weaker long-term outlook for the Yen, even as the currency experiences short-term gains.

USDCHF - The Swiss Franc is experiencing a bullish trend, bolstered by dollar strength. Both the MACD and RSI indicators point toward a continuation of the upward movement, with no signs of resistance in the price action. This suggests the bullish momentum in the Franc may persist.

USDCAD - The Canadian dollar remains weak against the strengthening U.S. dollar. Indicators including the RSI and MACD support a continuation of the current trend, suggesting further gains for the dollar. As of now, our outlook on the CAD remains unchanged, with expectations for sustained weakness in the near term.