Daily Market Recap

GOLD -GOLD has risen considerably but has stagnated after reaching the supply zone between 2449.587 and 2486.833. We continue to expect the price to rise further from where it‘s at, especially during next week’s trading as the September FOMC meetings approach. With a few more data releases coming into the markets before the rates meeting, there is still some room for a sudden change in bias. However, weak economic data released overnight bolstered GOLD strength, furthering the chances of rate cut expectations. Further discussions on USD news on the DXY chart.

SILVER - Silver has been resisted by 29.018 and is currently trading within the range. We expect the price to rise further from current market conditions, but we wait for more price action to confirm the price run.

DXY -We expect the dollar to weaken further after last night‘s data release showing a weaker-than-expected economy in both manufacturing and employment, with the ISM Manufacturing PMI showing further contraction to 46.8 from 48.5, and unemployment claims rising to 249k from last month’s 235k.

GBPUSD -The Pound lost against the dollar due to the BOE cutting their rates by 25 basis points to 5%. We may expect the Pound to drop further but respect the range created by the market as the September rate cut by the FOMC approaches.

AUDUSD - The Aussie dollar is currently consolidated as we expected as both economies are displaying weakness. However, the Aussie dollar's weakness still weighs more than the dollars. Thus, the price is showing a fall after it was resisted by 0.65618.

NZDUSD -The Kiwi failed to break above 0.59796 as we expected, and we anticipate further weakness to come into the currency soon. However, we will react to further price prints and wait for the decision of bigger traders on how they want to move this market.

EURUSD -The Euro is set to trade lower due to market expectations showing a possible rate cut. ECB policymaker Yannis Stournaras raised the risk of a weak eurozone economy sending inflation below the 2% target in an interview published on Thursday, reaffirming his expectation for two rate cuts this year. With that said, we expect further Euro weakness to come into the market in the coming months.

USDJPY -The Yen has gained considerably against the dollar, and our expectations remain for a bullish Yen and a bearish dollar as the data release last night raised concerns over the U.S. economy, showcasing a possible downturn and a number of rate cuts in the coming months and year.

USDCHF -The safe-haven asset, the Swiss franc, rose considerably against the dollar as analysts foresee rate cuts for the dollar and a downturn in the U.S. economy after a weak data release from last night. With that said, we expect the CHF to follow through with our expectation of the pair dropping toward 0.87041 and possibly falling to trade under said level.

USDCAD - The CAD weakness continues to dominate markets as worries over geopolitical tensions weigh on investors. Will this continue to be true？ Canada‘s economy and the Loonie’s strength are heavily reliant on its oil supply and commodities. We expect the CAD to suddenly gain strength after investors start to experience a shortage of oil due to rising tensions in the Middle East. However, as it stands, the Loonie will remain the highlight of its weakness.

COT Reports Analysis

CAD - Weak (5/5)

CHF - WEAK (3/5)

GBP - STRONG (5/5)

JPY - STRONG (3/5)

EUR - STRONG (5/5)

AUD - WEAK (5/5)

NZD - WEAK (4/5)

USD - STRONG (4/5)

SILVER - STRONG (2/5)

GOLD - STRONG (3/5)