Today's Market Moves

Markets on Edge: Anticipation Builds Around Rate Decisions

Global markets exhibited caution on Wednesday as key inflation data and rate decisions loomed. Investors focused on Canada and the Federal Reserve, both of which are expected to make critical moves in the coming week. While the Feds rate cut seems almost certain with an 85% probability, market optimism is tempered by the risk of disappointment as indices hover near all-time highs.

Canada‘s rising unemployment rate—at 6.8% in November—has stoked speculation of a 50-basis-point rate cut, bringing the overnight rate to 3.25%. Similarly, the European Central Bank and the Swiss National Bank are expected to lower rates to address economic pressures, particularly the franc’s strength.

In Australia, the central bank opted to hold rates steady at 4.35% but dropped previous hawkish language, leaving the door open for a February rate cut. The Aussie dollar weakened following this dovish shift.

GOLD Analysis

GOLDs upward momentum persists, with prices advancing past prior resistance levels. RSI divergence underscores robust buying activity, while the MACD confirms this with growing volume and strength. Analysts foresee further gains amid geopolitical uncertainties and anticipation of a U.S. rate cut next week, potentially driving prices to new highs.

SILVER Analysis

SILVER prices remain in a holding pattern after failing to decisively break past recent highs. Nonetheless, the MACD suggests diminishing bearish momentum, hinting at a bullish crossover. Consolidation in the RSI supports this outlook, with analysts expecting an upward move in the coming days.

Currency Analysis

The U.S. Dollar maintains its position as traders await CPI data. While the RSI indicates oversold conditions, MACD signals remain mixed, suggesting near-term consolidation.

The Pound lacks momentum, with market participants awaiting CPI clues. Current MACD and RSI readings offer little clarity, pointing to continued consolidation.

The Aussie Dollar remains under pressure, with bearish MACD signals and oversold RSI levels reflecting continued downside risk. A deeper retracement is possible before renewed selling.

The Kiwi continues to decline, with bearish indicators from both the MACD and RSI confirming a sell-off. Price action supports a continuation of this trend.

The Euro sees limited momentum, with overbought RSI conditions clashing with bullish MACD signals. Analysts anticipate a bearish reversal.

The Yen exhibits weakness, as bullish indicators from the MACD and RSI suggest further upward movement, despite minor pullbacks.

The Swiss Franc weakens under rate cut expectations. Divergent MACD and RSI signals hint at short-term volatility, though the broader trend remains bullish.

The CAD finds support from bullish MACD and RSI momentum, with prices expected to move higher following a potential rate cut announcement.