DBG Markets: Market Report for Oct 30, 2024

Market Overview

JOLTS job openings data yesterday was lower than expected, while CB consumer confidence rose significantly to 108.7. GOLD is edging higher as attention shifts to the ADP NFP and GDP reports this afternoon. Market forecasts predict an ADP NFP decrease to 110K from 143K. These results will shape expectations for Friday‘s NFP report, impacting GOLD’s strength, which continues to climb amid U.S. election anticipation and West Asia tensions. Although CPI data came in low, the likelihood of an RBA rate cut in December, let alone November, appears minimal. Key U.S. data releases are expected Friday, and we anticipate this afternoons reports will have some market impact.

GOLD - GOLD has reached new highs as anticipated, with further potential to exceed $3,200/oz this year. Well monitor momentum post-U.S. elections and observe the effects of the West Asia conflict on this market.

SILVER - The SILVER market is strongly bullish with upward momentum, though there is slight hesitation as traders await news. Our outlook remains very bullish, with no changes to our analysis.

DXY - For DXY, prices remain near monthly highs. We expect an upward continuation, but upcoming data releases may refine our rate cut expectations for November. Given recent healthy employment and inflation reports, a delay in rate cuts is possible, with the FED likely proceeding cautiously.

GBPUSD - Contrary to expectations, the Pound tested a swing high before likely continuing downward. We anticipate further trading will confirm a drop below 1.29966.

AUDUSD - The RBAs muted data release shows lower-than-expected numbers, but with no clear timeline on rate cuts. Markets lean toward no changes for November and December.

NZDUSD - Kiwi remains under 0.59796, showing limited movement. Continued selling pressure is likely, though a minor upward correction may follow equal lows.

EURUSD - The Euro is in consolidation, awaiting inflation data that may influence a December rate cut by either 25 or 50 basis points.

USDJPY - The YEN remains indecisive due to political complications in Japan. Current market direction leans on USD strength, and we expect an upward trend.

USDCHF - The Franc shows continued bullish consolidation, likely maintaining this trend as strength builds. We foresee further buying barring significant market shifts.

USDCAD - The CAD maintains its bullish outlook, with strong momentum suggesting further gains.