DBG Markets: Market Report for Oct 31, 2024

Market Overview

GOLD - GOLD hovers near record highs, supported by geopolitical tensions, concerns over conflict in West Asia, and upcoming U.S. elections. This safe-haven asset shows rising momentum; however, a potential correction may arise as the market anticipates the Inflation and NFP reports.

SILVER - SILVER prices remain in consolidation with no clear direction ahead of this weeks Inflation and NFP data, which are critical indicators for market trajectory.

DXY - The Dollar consolidates ahead of today‘s and tomorrow's data releases. Although recent reports suggest strengthening, the FED’s decision on a November rate cut may be influenced by upcoming news.

GBPUSD - The Pound fell following British Finance Minister Rachel Reevess first budget, which introduced the largest tax increases in three decades and set a new fiscal goal to reduce national debt. We expect continued bearish momentum after respecting the previous swing high, confirming a technical downtrend.

AUDUSD - The Aussie dollar recovered slightly as dollar trading slowed due to data release anticipation, though resistance at 0.65869 remains. We expect selling to continue, supporting bearish momentum.

NZDUSD - The Kiwi remains consolidated, showing little clear movement; however, we maintain a bearish outlook and foresee continued downside potential.

EURUSD - The Euro rose as the European Central Bank scaled back rate cut expectations following stronger-than-expected Q3 growth and a rise in German inflation. French central bank chief Villeroy de Galhau reaffirmed a medium-term 2% inflation target, while ECB member Isabel Schnabel advocated gradual rate cuts, and Bundesbank President Joachim Nagel indicated “price stability is not far off.” Momentum has shifted to bullish on the chart.

USDJPY - The Yen remains stagnant after creating a market gap, and we expect this gap to close, though the upward movement is uncertain. The Bank of Japan seems set to maintain ultra-low rates, while the U.S. dollar awaits jobs data and the U.S. presidential election next week.

USDCHF - The Franc is trading sideways with underlying strength; market conditions currently suggest bullish continuation. Further price movement will confirm this trend.

USDCAD - The CAD remains bullish without significant shifts in market structure. We await additional market activity for further price direction, but no changes have been noted in our current readings.