DBG Markets: Market Report for Oct 16, 2024

Market Overview

Netanyahu Finally Gives In To The U.S.？ According to the Washington Post, Netanyahu has conceded, stating that Israel will not strike Iran‘s oil and nuclear facilities; instead, they will target Iran’s military. However, according to his office, they will listen to the U.S. but make final decisions based on Israels national interests. In other words, while the U.S. attempts to maintain order and stabilize markets, Israel will act according to its own advantage. Oil buying may be halted temporarily, but the decisive moment will come when Israel retaliates against Iran. The conflict could still escalate into an all-out regional war. Netanyahu has previously led his allies to believe one course of action before doing the opposite. Hezbollah is calling for a ceasefire, but if Israel continues to fight, Hezbollah will retaliate. Israel, however, asserts that it is acting to counter a greater threat. Earlier today, Israel conducted airstrikes across Gaza, killing more than 40 Palestinians. Everyone is closely tracking how this story unfolds, and until a resolution is reached, the outcome remains uncertain.

GOLD - Gold experienced a surge in buying after yesterday's trading session, rising toward 2670.882. If everything aligns with our expectations, gold prices should continue to consolidate before a potential breakout. Currently, momentum suggests either a continuation upward or a consolidation down toward the supply and demand zone around 2636.600.

SILVER - Silver has broken above 31.472 with prospects of moving higher toward 32.518. Current price action suggests strong buying momentum. We expect further bullish movement, awaiting confirmation of this trend.

DXY - The Dollar is moving sideways, reflecting a supply and demand zone. While we wait for clearer market direction, current market conditions still favor a bullish dollar, as indicated by ongoing momentum on the chart.

GBPUSD - The pound is gearing up for a possible buying spree after a period of consolidation. However, until prices break above 1.31097, we remain uncertain about the market's direction. The announcement of more aggressive rate cuts could undermine the pound's strength. We wait for further price action.

AUDUSD - The Aussie dollar shows weakness, breaking below 0.67142. The market is favoring safer assets, and we are seeing increased demand for the Dollar and metals. Selling momentum in the Aussie dollar is expected to continue.

NZDUSD - The Kiwi is expected to move lower and trade below 0.60445, especially with markets pricing in another rate cut in November. The selling momentum has not shown any signs of slowing down.

EURUSD - The Euro is currently trading below 1.08950, with potential for continued selling momentum toward 1.08543. With a rate cut expected tomorrow, we anticipate further selling, especially after lower-than-expected inflation data.

USDJPY - The Yen is consolidating between two major supply and demand zones. We expect upward momentum to continue, though there's a possibility of a turnaround if prices fail to break above. If the West Asia conflict escalates, the Yen, alongside the Franc and Dollar, will likely be seen as a safer alternative.

USDCHF - The Franc is consolidating between two supply and demand zones, similar to the Yen. Currently, prices are trending upward, but we are waiting for confirmation of market direction.

USDCAD - The CAD has regained strength, trading below 1.37881. This break in upward momentum indicates potential consolidation. Markets are watching the West Asia conflict closely for clues on future direction.