DBG Markets: Market Report for Dec 05, 2024

Market Overview

The global financial markets are currently in a phase of consolidation as investors await crucial U.S. employment data set to be released today and tomorrow. This data will likely influence the Federal Reserve‘s next monetary policy moves, particularly regarding a possible rate cut in December. Analysts anticipate a slowdown in rate cuts during 2025, with the Trump administration’s policies adding further uncertainty to the economic outlook.

Gold prices remain supported by geopolitical risks, particularly the ongoing conflict in Ukraine. Meanwhile, Silver has shown strength in breaking resistance levels, reflecting shifting sentiment. The dollar remains range-bound as traders hold off on committing to significant positions until the data is available.

GOLD - Gold remains in a consolidation phase, influenced by geopolitical risks and economic uncertainty. The ISM Services PMI fell to 52.1, below expectations, suggesting a slight slowdown in economic activity. While the RSI and MACD show little momentum, Gold prices are holding steady, awaiting further directional cues from U.S. data and global developments.

SILVER - Silver has demonstrated bullish momentum, climbing above 30.6675 and breaching previous swing highs. The MACD indicates increasing bullish volume, although the RSI suggests the possibility of a pullback following a sharp upward move.

DXY - The dollar trades within a narrow range of 106.848 to 105.840. Both the RSI and MACD reflect weak commitment to a direction. However, overall sentiment has shifted slightly bullish after an extended bearish trend. The CME FedWatch Tool indicates a 73.2% probability of a December rate cut, which could trigger a dollar sell-off.

GBPUSD - The pound remains consolidated below its previous swing high of 1.26163. While the MACD signals bullish momentum, volume remains weak, and the RSI shows little directional strength, reflecting market indecision.

AUDUSD - The Aussie dollar shows ongoing weakness despite a slight bullish pullback driven by oversold conditions. The RSI and MACD suggest limited recovery potential, with the broader trend remaining bearish.

NZDUSD - The Kiwi exhibits bearish momentum overall, though early Asian trading hinted at strength. The MACD and RSI indicate the potential for a deeper pullback, but 0.58984 remains a critical level to watch for bearish continuation.

EURUSD - The euro remains range-bound, with traders hesitant to commit to a direction. Both the RSI and MACD reflect this consolidation, awaiting U.S. data to determine the next move. Geopolitical risks also weigh on sentiment, adding to the euro's uncertainty.

USDJPY - The yen has weakened, breaching previous swing highs and showing signs of bullish momentum. The RSI indicates oversold conditions for sellers, while the MACD supports a potential pullback, suggesting room for further price appreciation.

USDCHF - The current price is experiencing continued buying momentum, but strong resistance persists at 0.88886. The RSI indicates weakening strength, suggesting a potential loss of bullish momentum, while the MACD also reflects declining volume and further weakness. Prices are likely to remain in consolidation around this level until additional clarity emerges regarding the dollars direction, influenced by upcoming economic data and broader market developments.

USDCAD - The CAD is in a consolidation phase, trading near 1.40723. The MACD hints at selling pressure, but volume remains minimal, while the RSI signals indecision. Additional data will be needed to provide clearer direction for the currency.