Daily Markets

• The dollar hit a one-week low against a basket of major currencies on Thursday as U.S. equities rebounded from the prior day's sell-off and investors braced for Friday's U.S. inflation data for clues to the path of future Federal Reserve policy. Data earlier Thursday showed gross domestic product increased at a 4.9% annualized rate last quarter, revised down from the previously reported 5.2%. The consumer spending element of third-quarter GDP was revised downward to 3.1% from 3.6% in the previous estimate. The U.S. currency rose on Wednesday in a safe-haven bid after U.S. stocks' abrupt afternoon sell-off. The Fed held interest rates steady last week and policymakers signaled in new economic projections that the historic monetary policy tightening engineered over the last two years is at an end and lower borrowing costs are coming in 2024. A separate report on Thursday showed the number of Americans filing new claims for unemployment benefits rose just marginally last week, suggesting underlying strength in the economy as the year winds down. Investor now await Friday's reading on U.S. core personal consumption expenditure (PCE) index. A November rise of 0.1% would slow the six-month annualized pace of inflation to just 2.1%, almost at the Fed's 2% target. Some investors expect slower inflation will prompt the Fed to ease policy to stop real rates from rising, and are wagering on early and aggressive action. The dollar fell 0.93% against the Japanese yen. Japan's government on Thursday slightly raised its economic growth projections for this fiscal year from its previous estimates. The yen is down roughly 8% against the dollar for the year as the Bank of Japan has steadfastly kept short-term rates negative, against 300 basis points of U.S. interest rate hikes. Sterling was up 0.4% at $1.2689 against the dollar on Thursday, a day after suffering its sharpest drop in two months on news that British inflation dived below forecasts to an annual 3.9% in October, a two-year low. Traders priced in Bank of England rate cuts as soon as May. Some analysts said month-end rebalancing in thin trade could weigh on the dollar in the near term.

Gold – XAU

Gold on Thursday made its intraday high of US$2045.90/oz and low of $2031.41/oz. Gold is up by 0.698% at US$2045.64/oz.

Technicals in Focus:

On the daily charts, gold trades higher than 20DMA (1953). If it drops below this level, it could lead to 1,927. The MACD is currently below the zero line but the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 45.31, which is in the neutral region, suggesting there may be more selling pressure before it rebounds. The Stochastic Oscillator is also in the oversold territory but has given a positive crossover, indicating a bullish stance for intraday trades.

Trading Strategy: Sell on Strength

Sell in between 2048-2094 keeping stop loss closing above 2094, targeting 2032-2020-2005 and 1989-1980-1963. Buy in between 2040-1951 with risk below 1951 targeting 2049-2060-2074 and 2080-2094.

Silver - XAG

Silver on Thursday made its intraday high of US$24.46/oz and low of US$24.46/oz settled up by 1.015% at US$24.38/oz.

Technicals in Focus:

On daily charts, silver is sustaining below 200DMA (22.91), breakage above will lead to 23.51. MACD is below the zero line and histograms are decreasing trend, bringing a bearish stance in the upcoming sessions. RSI is approaching the oversold region, indicating a sell signal for now. The Stochastic Oscillator is in the oversold region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 23.40-19.30, targeting 23.50-24.60 and 25.00-25.90 with stop loss should be placed on the breakage below 19.00. Sell in between 24.00-27.50 with a stop loss above 27.50 targeting 23.40-22.40-21.90 and 21.50-20.90-20.50.

Oil - WTI

Crude Oil on Thursday made an intra‐day high of US$74.61/bbl, an intraday low of US$72.47/bbl, and settled up by 0.260% to close at US73.98/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 100DMA i.e. 75.37, a support level, and breakage above will call for 77.48. MACD is above the zero line and histograms are in increasing mode will bring a bullish stance in the upcoming sessions. The Stochastic Oscillator is in the overbought region, giving a negative crossover to confirm a bearish stance; while the RSI is in the neutral region, more upside can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 74.90-76.70 with stop loss at 77.00; targeting 73.85-72.50-72.00 and 71.00-70.10-69.40. Buy above 73.85-67.35 with risk daily closing below 67.00; targeting 75.10-75.90-76.50 and 77.00-77.60.

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0934/EUR, a high of US$1.1011/EUR, and settled the day up by 0.655% to close at US$1.1010/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.0800), which becomes immediate support, a break below will target 1.0717. MACD is above the zero line and histograms are increasing mode, bringing a bullish view. Stochastic is in oversold territory, giving negative crossovers to the bullish outlook for intraday. 14D RSI is currently in a neutral region and giving no directions to consider right now.

Trading Strategy: Neutral to Sell

Sell below 1.1020-1.1100, targeting 1.0940-1.0890-1.0820 and 1.0775-1.0770-1.0640 with stop-loss at daily closing above 1.1100. Buy above 1.0940-1.0490 with risk below 1.0490 targeting 1.0940 and 1.0990-1.1020-1.1060.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.2611/GBP, a high of US$1.2694/GBP, and settled the day up by 0.400% to close at US$1.2688/GBP.

Technicals in Focus:

On daily charts, prices are sustaining below 50DMA (1.2297) is becoming a resistance level. 14-D RSI is currently in a neutral region and direction is difficult to predict on an RSI basis. The Stochastic Oscillator is in oversold territory and gives a positive crossover to confirm a bullish stance. MACD is above the zero line but histograms are increasing leading to movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy in between 1.2630-1.2050 with a target of 1.2730-1.2790-1.2850 and 1.2890-1.2950 with a stop loss closing below 1.2100. Sell in between 1.2700-1.2950 with targets at 1.2630-1.2540-1.2490 and 1.2440-1.2390-1.2300 with a stop loss of 1.2950.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY142.04/USD, an intraday high of JPY143.56/USD, and settled the day down by 1.017% at JPY142.09/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (137.57), major support on the daily chart. 14-D RSI is currently in the overbought region and chances of downward are expected based on RSI. MACD is above the zero line but histograms are in decreasing mode which might lead to downward movement. The Stochastic Oscillator is in overbought territory and signaling to sell as it has given a negative crossover to confirm a bearish stance.

Trading Strategy: Neutral to Sell

Sell below 143.00-145.90 with risk above 146.00 targeting 143.00-141.60-140.90 and 140.00-138.70-137.90. Long positions above 142.00-137.90 with targets of 142.90-143.20-144.00 and 145.00-146.00-146.80 with stops below 137.90.