Economic Headlines: Today's Market Impact

Market Overview

Russia's Plan to Go Nuclear

Russia has announced a new Nuclear Doctrine, warning the U.S. against attacking its territory. The doctrine states that if Russian lands are attacked, they reserve the right to use nuclear weapons. If Russia detects any incoming threat, such as missiles, drones, or aircraft, it can respond with nuclear force.

This poses a disadvantage for Ukraine, which has been requesting long-range ballistic missiles. Vladimir Putin has reiterated that Russia may use nuclear weapons if it perceives military aid to Ukraine as direct involvement in the war, potentially targeting the West.

Market Analysis

GOLD - GOLD is waiting for data to be released this evening to give clues about market expectations for rate cuts tomorrow. The lows have been extended, and the traps have been set. How much longer will it be until the bull run？ Many traders see GOLD as a sure bull run given the upcoming rate cuts. However, there is a chance for GOLD to surge before the rate cuts this November, depending on the data released later this evening. Currently, GOLD is in a bullish structure, respecting upward momentum. However, there is also a possible M formation that could be completed once structures reach the bottom. We are waiting for further confirmation.

SILVER - SILVER has already moved ahead of GOLD. We view this commodity as a better option since it is priced lower and is about to make historic highs. That said, SILVER is very bullish with strong chances of rising further. We anticipate and wait for more confirmation.

DXY - The Dollar is currently above 101.786. This dollar surge has suppressed GOLDs run for a while, benefiting investors and the jobs economy. This has allowed for recovery over time. However, how much longer will this last？ We are waiting for further price trading and confirmation to provide a clearer picture of what will transpire in the coming days. Currently, prices are still above the said zone.

GBPUSD - The Pound has dropped to new lows, showing a massive slide by yesterdays trading end. The escalating war in West Asia has caused risk-sensitive assets to slide and oil prices to surge, as expected.

AUDUSD - The Aussie dollar weakened following the dollar bull run. Prices are currently under 0.68715 and 0.67985. We anticipate further selling to continue, with chances of consolidation later. However, at current prices, it is poised to be a buy soon.

NZDUSD - With the Kiwi expected to cut rates next week, alongside the sudden dollar surge amidst the war in West Asia and a hawkish stance, the Kiwi has dropped to 0.62086. We expect further selling.

EURUSD - The Euro has dropped as a risk-sensitive asset. We anticipate further selling but see a potential bounce. Numbers released earlier this week showed inflation falling below 2%, with rate cuts expected this month. With that said, we see further weakness ahead for the Euro.

USDJPY - The Yen has weakened significantly after the announcement that they are not yet ready to hike rates. In the next few days to months, we expect further Yen weakness.

USDCHF - The Franc is once again showing signs of dropping before breaking above its recent peak, indicating that it is stuck in a range. However, it can also be argued that the bullish momentum remains strong and could continue. Given current price action, further consolidations may occur.

USDCAD - CAD strength may come in later. Oil profits are expected to be applied in about a month. However, current data suggests weakness in the Loonie, reflecting a weakening economy. The market may target 1.35762. We are awaiting further price action to confirm this movement.