DBG Markets: Market Report for Feb 10, 2025

Market Overview

This week promises significant market activity with key speeches and data releases. On Tuesday, both BoE Governor Bailey and Fed Chair Powell will deliver addresses. Wednesday will see the release of US CPI data alongside another speech by Powell. On Thursday, critical reports include New Zealand inflation, British GDP, Swiss CPI, US PPI, and unemployment claims. Finally, US retail sales data will wrap up the week on Friday.

Adding to market volatility, former US President Donald Trump announced over the weekend plans to impose a 25% tariff on all steel and aluminum imports, which would intensify his trade policies. Trump also hinted at introducing reciprocal tariffs on several countries early this week.

Geopolitical tensions remain high as Trumps warnings to Iran have failed to deter their purchase of Russian fighter jets, indicating potential escalation. Trump reiterated his stance on preventing Iran from acquiring nuclear weapons, keeping this issue in the spotlight.

GOLD - Gold prices hover near all-time highs, supported by tariff threats and geopolitical escalations. The MACD shows muted volume, while the RSI edges toward overbought territory. Despite this, the EMA200 and broader price momentum remain bullish. We maintain a bullish outlook for gold.

SILVER - Silver remains consolidated within the 31.9590–32.5177 range. The EMA200 acts as strong support, but both the MACD and RSI reflect increasing bearish momentum. While prices may continue lower, consolidation is likely as the market awaits further direction from gold and the dollar.

DXY - The Dollar has rebounded on tariff-related news, rising above previous support but stopping short of testing the last swing high. Although the MACD shows increasing buying momentum and the RSI normalizes the recent gains, the dollars overall trend remains bearish as it fails to break key resistance levels.

GBPUSD - The Pound continues to consolidate but holds its bullish outlook above the 1.23883 support level. The MACD reflects a lack of directional momentum, while the RSI signals exaggerated buying pressure despite muted upward movement. We remain cautiously bullish but acknowledge the potential for a bearish shift.

AUDUSD - The Australian Dollar is supported by the EMA200 and a previous swing low, maintaining a bullish structure. However, resistance overhead continues to cap gains. Both the MACD and RSI signal growing bearish momentum. Clarity will depend on increased market volume.

NZDUSD - The Kiwi Dollar faces greater downward pressure than the Australian dollar, trading below key support levels, including the EMA200. Tariff news has accelerated bearish momentum, as reflected in both the MACD and RSI. This market currently favors further downside.

EURUSD - The Euro has seen increased selling momentum after failing to shift its overall trend bullish. Both the MACD and RSI confirm growing bearish sentiment. Fundamentals point to further downside, with expectations for deeper ECB rate cuts this year amid tariff threats and deflation concerns. The market remains bearish for the euro.

USDJPY - The Yen is experiencing strong bearish momentum, with the RSI reflecting overbought conditions before the recent downturn. The MACD is nearing a bearish cross, reinforcing the current negative sentiment. The yen remains under pressure, driven by expectations of additional rate hikes by the BoJ later this year.

USDCHF - The Franc shows steady bullish momentum, supported by gains above the EMA200 and 0.90743 resistance level. The MACD holds positive volume, and the RSI normalizes after recent upward movement. We maintain a bullish outlook for this market.

USDCAD - The Canadian Dollar remains consolidated after last weeks tariff-related developments. While downward pressure exists, it is unlikely to push prices significantly lower. We maintain a neutral outlook, awaiting further market cues to confirm either a continuation of the consolidation or a shift toward bullish momentum.