Daily Markets

• The U.S. dollar slipped against the yen on Thursday as investors weighed data showing labor market weakness as well as a slight uptick in consumer prices, suggesting that the Federal Reserve will likely continue cutting interest rates. Labor Department data on Thursday showed that the consumer price index increased 0.2% in September. However, in the 12 months through September the CPI climbed 2.4%, which was the smallest year-on-year rise since February 2021. Economists polled by Reuters had forecast the CPI edging up 0.1% and rising 2.3% year-on-year. Other data from the Labor Department also showed that the number of Americans seeking unemployment benefits surged last week, driven partly by Hurricane Helene and furloughs at Boeing. The greenback was down 0.38% at 148.66 yen after rising to as high as 149.58 yen for the first time since Aug. 2. Bank of Japan Deputy Governor Ryozo Himino's latest comments on Thursday supporting more rate hikes if the economy moves in line with bank projections, had helped to keep the dollar slightly weaker against the yen The dollar index, which measures the currency against six key rivals including the yen, the pound sterling and euro, was up slightly by 0.07% to 102.96 in choppy trading after hitting its highest since August 15. In a Wall Street Journal interview on Thursday, Atlanta Federal Reserve Bank President Raphael Bostic said he would be "totally comfortable" skipping an interest-rate cut at an upcoming meeting of the U.S. central bank. He added that the "choppiness" in recent data on inflation and employment may warrant leaving rates on hold in November. Traders are betting a nearly 85% chance on the Fed cutting rates by 25 basis points at its next policy decision on Nov. 7, and a nearly 15% probability of no change, the CME Group's (NASDAQ:CME) FedWatch Tool showed. The 2-year note yield, which typically moves in step with interest rate expectations, fell 2.8 basis points to 3.989%.

Gold – XAU

Gold on Thursday made its intraday high of US$2631.29/oz and low of $2602.29/oz. Gold is up by 0.858% at S$2629.80/oz.

Technicals in Focus:

On the daily charts, gold trades higher than 20DMA (2197). If it drops below this level, it could lead to 2,100. The MACD is currently above the zero line and the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 83.04, which is in the overbought region, suggesting there may be selling pressure in the next 2 to 3 sessions. The Stochastic Oscillator is also in the overbought territory but has given a positive crossover, indicating a bullish stance for intraday trades, but rebound in expected in all the overbought indicators.

Trading Strategy: Sell on Strength

Sell below 2620-2690 keeping stop loss closing above 2700, targeting 2610-2600-2584 and 2575-2560-2552. Buy in between 2610-2560 with risk below 2560 targeting 2620-2634-2645 and 2662-2669-2690.

Silver - XAG

Silver on Thursday made its intraday high of US$31.16/oz and low of US$30.33/oz settle up by 2.22% at US$31.14/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 20MA (25.05), breakage above will lead to 23.73. MACD is below the zero line and histograms are increasing trend, bringing a bullish stance in the upcoming sessions. RSI is in the oversold region, indicating a sell signal for now. The Stochastic Oscillator is in the overbought region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 30.90-25.90, targeting 31.30-31.90-32.50 and 32.90-33.50-34.00-34.70 with stop loss should be placed on the breakage below 26.00. Sell in between 31.40-34.70 with a stop loss above 35.00 targeting 30.40 and 29.80-29.50-28.90.

Oil - WTI

Crude Oil on Thursday made an intra‐day high of US$73.96/bbl, an intraday low of US$71.15/bbl, and settled down by 3.04% to close at US$72.83/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 75.90-79.85 with stop loss at 80.00; targeting 74.10-73.00-72.454 and 71.65-70.90-70.00. Buy above 75.00-65.80 with risk daily closing below 65.00, targeting75.75-76.50-77.10 and 78.00-79.00

EUR/USD

EUR/USD of Thursday made an intraday low of US$1.0935/EUR, a high of US$1.0980/EUR, and settled the day down by 0.326% to close at US$1.0924/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 1.0960-1.1400, targeting 1.0960 and 1.0850- 1.0785 with stop-loss at daily closing above 1.1100. Buy above 1.0910-1.0785 with risk below 1.0700 targeting 1.1150-1.1190-1.1250 and 1.1290-1.1340-1.1400.

GBP/USD

GBP/USD on Thursday made an intra‐day low of US$1.3152/GBP, a high of US$1.3313/GBP, and settled the day up by 0.202% to close at US$1.3283/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.2674) is becoming a support 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 1.3040-1.2690 with a target of 1.3120-1.3210-1.3300 and 1.3390-1.3450-1.3500 with a stop loss closing below 1.3010. Sell in between 1.3120-1.3660 with targets at 1.3040 -1.2940-1.2890 and 1.2800-1.2740-1.2690 with a stop loss of 1.3560.

USD/JPY

USD/JPY on Thursday made an intra‐day low of JPY157.59/USD an intraday high of 158.12/USD, and settled the day down by 0.351% at JPY158.06/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (155.35), 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 149.50-151.50 with risk above 152.00 targeting 147.80-147.00-146.00 and 145.10-143.90-143.00-142.20. Long positions above 148.50-140.00 with targets of 148.50-149.20-150.00 and 151.10-151.50 with stops below 140.00.