DBG Markets: Market Report for Oct 2, 2024

GOLD - With the heightened issues happening in West Asia, metal assets are seen rising with great momentum, with prices supported as global instability increases. We now look into further buying and see the potential for the market to break above 2670.882. We wait for further price trading but expect more buying to come into the markets.

SILVER - SILVER has gained strength but remained at 31.472. SILVER assets are expected to increase alongside the heightened insecurity of international and geopolitical security. While contemporary warfare limits the usage of silver, there will be a use in its financial security and utilization. Thus, fundamentally, we look into buying more of SILVER.

DXY - The dollar gains strength after FED Powell pushes back the idea of having another 50-point cut by this November. In actuality, with the recent turnouts of geopolitical events, there may be no rate cut happening due to fears of rising demand and a possible burst of inflation. However, market sentiment remains unsure as the markets are poor in determining risks and a good price in the face of such conflicts. Thus, it is best to react to whatever happens, rather than preempt the actions.

GBPUSD - The Pound has fallen deeper after the USD gained strength. Currently, there is a big chance for the price to move back up after failing to reach 1.32301. We look into potential buys back into the consolidation happening on top. However, there may be more positive reactions for the dollar until we see more evidence that the 50-point cut may happen.

AUDUSD - The Aussie dollar is seen increasing further as markets price in more trading into Aussie stability as market expectations extend until December before their cutting of rates. In other words, compared to other currencies, the Aussie holds the most strength this week.

NZDUSD - The Kiwi is expected to cut its rates next week, and the current rise is an expected bounce before the continuation of another sharp fall. However, until prices remain above this structure, our bullish insight remains with expectations of a break below.

EURUSD - The Euro data on Tuesday‘s inflation showed that it has fallen below the ECB’s 2% target, bolstering the chances of a rate cut this coming Oct. 17. Similar to the Kiwi, Euro weakness is evident in the markets.

USDJPY - The Yen has remained stagnant with no apparent direction to take. Currently, it is at 144.451 and 143.442. We wait for further data releases to allow us to see how the Yen will continue to navigate through their rates. However, further rate hikes are probable in the market.

USDCHF - The Franc is currently stagnant between two S&D zones. We can see this market falling if issues in West Asia rise further. However, until then, this may continue to consolidate.

USDCAD - The CAD gains strength as war widens in West Asia. Why？ It may be due to the impact of increasing oil prices and worries about its demand. A sharp increase in both Light Crude and Brent Crude oil prices is seen in the markets at 70.89 and 74.56, respectively. This increase happened overnight. This increase is expected to continue alongside the heightened demand for GOLD and SILVER assets.