DBG Markets: Market Report for Oct 17, 2024

Market Overview

GOLD - Gold finds support at 2670.882 after the price broke above this level, hovering near its previous high. Data expected later this evening may push prices to new highs. Until then, we continue to trade cautiously as further buying may occur if the data comes out cooler than expected.

SILVER - Silver reached anticipated highs but remains stagnant after failing to break higher with strong momentum. The consolidation is expected to continue for now. A better entry price may appear with a drop before the data release, though a continuation toward the high is also possible.

DXY - The Dollar is reaching new highs. Despite its continued strength, we also see growth in gold and silver due to the uncertainty caused by the war in West Asia. We will monitor upcoming data to gauge the effect on rate cut expectations. Until Israels retaliation against Iran becomes clear, we will take a cautious approach with further cuts expected.

GBPUSD - The Pound is showing its overall direction by continuing to decline after peak rate cut expectations. We expect further selling, especially as the Eurozone announces its first rate cut later this evening.

AUDUSD - The Australian dollar received a boost from better-than-expected jobs data released this morning. Employment change jumped from 42.6k to 64.1k, much higher than the expected 25.2k, while unemployment remained stagnant at 4.1% instead of the expected rise. This strengthens the hawkish outlook for the Aussie dollar.

NZDUSD - The Kiwi continues to consolidate while showing weakness, marking a new low. Until previous highs are broken, we maintain a bearish outlook with the possibility of breaking below 0.60455, especially with ongoing negative market sentiment.

EURUSD - The Euro is expected to see a rate cut later this afternoon, following a recent inflation report that dropped below the target 2%. The euro eased by 0.02% to $1.0859, with expectations for a further drop below 1.08543 as the European Central Bank prepares to deliver its rate cut.

USDJPY - The Yen remains consolidated with no clear direction. However, buying momentum and structure are respected. Until a break occurs, we continue to view the market as bullish.

USDCHF - The Franc continues to move upward as anticipated, showing bullish movement in line with market expectations. No changes have been observed.

USDCAD - The CAD is currently moving downward with good momentum, having broken the previous low. We continue to view this market as bearish for now, with the price testing 1.37435.