Today's Economic News

Market Overview

Officials still called on Monday for continued policy caution as the FED is still skeptic if current data really proves that the economy is on its path toward the Central Banks targetted 2% inflation. 

“The issue right now is when are we going to be certain that inflation is clearly on a path back to 2%. I think it's going to take a while before we know that for sure,” Bostic said in an interview with Bloomberg Television.

Speaking at the Mortgage Bankers Association conference in New York, Fed Vice Chair Philip Jefferson said it is too early to tell whether the recent slowdown in the disinflationary process will be long-lasting.

Vice Chair Michael Barr said the restrictive policy needs more time.

Onto the stock market with major equities, the Nasdaq Composite gained the most at a positive 0.65%, while the S&P500 rose by 0.09%. The Dow Jones Industrial Average fell by 0.49%. Infotech was the best-performing S&P 500 sector, followed by communications services while financials and consumer discretionary were the laggards.

The tech-heavy Nasdaq led the three major U.S. stock indexes with a boost from chips, as Nvidia Corp advanced ahead of its closely watched earnings report, expected on Wednesday.

US 10-year yields closed higher on a Monday at 4.449% after FED officials expressed their uncertainty about a rate cut.

GOLD -GOLD has made records and has successfully broken through 2431.705 and has tested the key supply zone at 2449.620. We see a correction when the price reached said structure but we expect more volume and momentum to come into the market to further push prices higher. We continue to call this a bullish market.

SILVER - The market has reached higher as we expected in a parabolic manner. Now that price has been consolidated to collect orders, the market is giving us an opportunity to enter at an acceptable price. Our view of this market has not changed. We continue to call this market as bullish. While there may be a chance for prices to test 29.900 again before continuing its move up. Where prices currently stand, this has a lower probability of happening.

DXY - Surprisingly, the dollar has held itself up really well against its own. We can now see the price consolidate a little below 104.607 with the price staying under the structure more comfortably than it does above it–telling us more sellers entering the market than buyers. The structure is very bearish and we continue to call this market as so. This is further proven by a rising demand for metals.

GBPUSD - Albeit slowly, the pound has risen and has stayed up despite a slight recovery on the dollar. This tells us that price collection of orders is occurring right now. We wait for a better entry point for this however, a chance for a sudden burst of price action to occur may happen.

AUDUSD - This market has the price moving rather aggressively within a specific range of structure. We can now see the price move between 0.67142 and 0.66541. We continue to call it a bullish market with a low chance for prices to correct toward 0.66145. We see the drops as opportunities for the price to increase.

NZDUSD - The NZD market has now consolidated between 0.61408 and 0.60954. We see this as a collection for orders to move upward and we expect the price to continue bullish.

EURUSD -The prices have now consolidated between 1.08950 and 1.08543. We expect the price to still move upward with a chance to move back into the daily downward trendline. However, the COT reports do signal against this as more buyers move into the EUR. There is potential for the current move to be an M formation unless it moves back up to break above or to test the second legs structure.

USDJPY - The market in this chart has shown recovery since its fall. We see evident JPY weakness despite strength coming into the COT reports. With this, we signal everyone to remain wary of the Yen as another wave of BoJ intervention may come into play if the price fails to stay below the price they do not wish. We see the price below 156.516 with the potential for it to break through the said structure.

USDCHF -The price has broken through 0.90940 and is consolidating slightly above it. The price has to break 0.91087 before a possible momentum shift, but we see a sudden rise that may call trades before going down.

USDCAD -  The CAD has gained a foothold against the dollar well as the market denied any evident strength to come back for the USD. Despite the USDs recovery, there are no aggressive changes in the market. We are currently seeing a collection of orders occurring before a fall. We continue to call this market bearish.