Key Economic Indicators Today

Market Overview

It's a busy week for the U.S. this week and we expect lots of action. There is growth in the Manufacturing sector, retail sales, unemployment change, and Flash Manufacturing and Services PMI. Many FED officials are scheduled to speak: Fed speakers include Richmond Fed President Thomas Barkin, Fed Governor Lisa Cook, Philadelphia President Patrick Harker, Dallas President Lorie Logan, St Louis President Alberto Musalem, and Chicago President Austan Goolsbee.

We watch these closely as the next few data releases will affect rate-cut decisions. 

Cuba does not want the submarine there. 

The G7 leaders have agreed to provide Ukraine with a $50 billion loan, backed by the profits from frozen Russian investments. This decision aims to support Ukraine's defense and reconstruction efforts. The loan will be repaid over time using the interest generated by the frozen Russian assets, which are estimated to be worth nearly $300 billion. The G7 also wanted to work on peace for the war at Gaza, backing the U.S. plans. The G7 also wanted to develop further investments in Africa to solve the illegal immigrants coming to Europe through Italy from Africa. 

Further developments of these tensions ensue concern for the people in the world as conflicts arise. That is the same for investors as further conflict will slow business down in many sectors, causing many to rush their way into purchasing safe-haven assets like the GOLD and Silver. That is not only true for minor participants but also for major participants like the Central Banks. With this in mind, we continue to trace the developments as a major factor of further market engagement -- a shift in economic focus will determine major sectors of development. 

GOLD - The market in GOLD is in a range between 2332.174 and 2295.536. There is no sure market direction from where it currently is. As the market shows in the chart, there is the formation of an SHS formation. However, fundamental readings suggest otherwise. With that, we continue to wait for further confirmation on which structure holds up more. This week will result in interesting developments for the markets.

SILVER -The SILVER is trading slightly under from last week's open to between 29.900 and 29.018. We cannot call an exact directional bias until further price prits confirm price movement. However, we can see the M formation being completed by the following price movements.

DXY - The dollar found recovery after last week's trading session, seeing its price above 105.071 and nearing 105.840. The bearish structures have been broken and are now looking to go Bullish. We are waiting for further price prints to confirm price movements.

GBPUSD -The pound found resistance at 1.28508 and is now trading toward the middle point of the range at 1.26487. We wait for further confirmations on this price before drawing a conclusion for price bias.

AUDUSD - The price is trading between 0.67142 and 0.65869. We wait for further confirmations before calling the price for any bias.

NZDUSD - Not much progress after last week's trading session. With that, we can see the price ranging between 0.62086 and 0.60954. Albeit, the price showing a more bullish inclined setup, we wait for further price prints to confirm overall price movement.

EURUSD -The EUR has fallen under the trendline and is now showing a more bearish market. We call this market bearish as the ECB confirms rate cuts, proven by how the EUR is falling even against the CAD despite the BoC confirming further rate cuts. The ECB cut all three interest rates by 25 basis points as expected but reiterated it will not follow a predetermined rate path and will remain data-dependent in future meetings. The central bank continued to stress that wage growth and services inflation require more attention but achieved the necessary conviction to lower rates given the fact that inflation has fallen 2.5% since September with the outlook improving.

USDJPY - The YEN is showing further weakness against the dollar. We expect the strength to come into the YEN soon but we are unsure when. With that, we can see a clear upward trend being formed. But to be on the safer side, we suggest being cautious when trading this pair. We do not call this pair any bias yet.

USDCHF - The price bounced off 0.88886 and is showing multiple attempts at testing the price level to fall through the structure. We wait for further price prints to confirm the sure price trend before calling a bias on this price.

USDCAD -USDCAD has not shown significant movement since last week's trading, failing to break above 1.37881. We are waiting for further confirmations before determining a bias, though we expect the pair to trade bullishly as the BoC confirms further rate cuts.

COT Reports Analysis

CAD - Weak (5/5)

CHF - Weak (2/5)

GBP - Strong (5/5)

JPY - Weak (3/5)

EUR - Weak (4/5)

AUD - Weak (5/5)

NZD - Strong (5/5)

USD - Strong (3/5)

GOLD - Strong (1/5)

Silver - Weak (2/5)