Today's Economic Outlook

GOLD - Oncoming demand for GOLD is underway as the price slid to lower levels under 2401.779. While safe-haven demand is called for by many traders, analysts stay cautious of the data release this Friday for Core PCE and later today, Thursday, Advance GDP q/q. The unemployment claims will also account for market rate cut expectations. We call this market bullish with a chance for a deeper retracement. Only take this market long, but be cautious of trading this price.

SILVER - This market is currently extending its lows, maintaining trades under 29.018. We continue to anticipate this market to be bullish, but we may see a deeper discount until a more secure call for buys. We will react to the price accordingly as it breaks into under the range of 29.900.

DXY -The dollar slid yesterday but remains consolidated in anticipation of the data release this Friday. We continue to review how the dollar will move. Until then, stay cautious of price movement. All eyes are on the dollar news, and we suspect that the majority of the run will occur next week. This week, we expect traders to take profits and allow for a better opportunity to reposition themselves. The rout on Wall Street led markets to price in a 100% chance of a rate cut from the U.S. Federal Reserve in September, stoking speculation that it would take a more dovish track at a policy meeting next week.

GBPUSD - The pound is still held at 1.29100 and is not showing any significant direction. It remained consolidated for the entirety of the days that had passed. We continue to anticipate a bullish market run, but it may still change depending on the data release later this Friday.

AUDUSD - The Aussie dollar remains trading lower at 0.65638, trading below 0.66145. We can see the Aussie dollars weakness through these markets, and we may expect further drops to occur as market expectations for the RBA rate cuts rise. The probability of a rate hike from the Reserve Bank of Australia (RBA) at its August policy meeting is now 17%. Much will depend on inflation figures for the second quarter due on July 31, where an annual rise of 4.0% or more in core inflation would ramp up pressure for a tightening.

NZDUSD - The Kiwi has lost its ground and is running straight southward due to increased readings of a rate cut to occur this year. With the data released last month weaker than expected, demand for the kiwi has softened. With that said, we can see the Kiwi showing further weakness. The Reserve Bank of New Zealand (RBNZ), a run of soft data, has markets baying for early and aggressive rate cuts with an August easing now priced at a 44% probability. Some 68 basis points of cuts are implied for this year and another 108 basis points for 2025.

EURUSD - The Eurodollar has held still, showing strength in the markets. We continue to remain prudent for this market as there is still uncertainty in their economy. However, we may see an increase in strength for the EUR upon nearing FED rate cuts this September. Although we remain aware of price movement to react accordingly to changing situations.

USDJPY -The Yen has gained significant strength against the dollar as we expected. We may see the market drop further, especially after the market releases data. Find a good entry for this market to have more profit. However, do not force entry and instead, wait for a better opportunity to enter.

USDCHF - The CHF has found strength against the dollar, sliding prices under 0.88886. We now wait to see how the price will move from here after the data release, but we expect the price to drop further from current levels. Current levels may be presenting a good entry-level soon.

USDCAD -  CAD weakness is evident as the price continues to move upward, reaching 1.38402. Will buyers continue to push prices up？ We will wait to see how prices will move from here, especially after the data release.

COT Reports Analysis

CAD - WEAK (5/5)

CHF - WEAK (5/5)

GBP - STRONG (5/5)

JPY - STRONG (2/5)

EUR - STRONG (5/5)

AUD - STRONG (5/5)

USD - STRONG (4/5)

SILVER - STRONG (3/5)

GOLD - STRONG (5/5)