Daily Markets

• Most Asian currencies moved little on Wednesday, while the dollar steadied near recent peaks as focus turned squarely to upcoming U.S. inflation data for more cues on interest rates. The dollar shot up over the past week, while most Asian units weakened after Donald Trump won the 2024 presidential election. Uncertainty over what a second Trump presidency will entail for Asia remained in play. Traders were also seen holding out for more stimulus measures from China, after the country’s latest bout of fiscal measures underwhelmed. The dollar index and dollar index futures steadied in Asian trade after falling slightly from a four-month high in the prior session. Traders piled into the greenback amid bets that Trump will introduce more expansionary policies, potentially underpinning inflation in the coming years. But this trade paused on Wednesday, with focus turning to key upcoming consumer price index data later in the day. The reading is expected to show inflation remained sticky in October. The October CPI reading also comes after Minneapolis Fed chief Neel Kashkari warned on Tuesday that any increases in inflation could see the Fed keep rates on hold. His comments saw traders trim bets on a 25 basis point cut in December, with traders pricing in a 64.2% chance for a cut, down from yesterday’s 66.7% probability of a cut, according to CME Fedwatch. More Fed officials are set to speak this week, most notably Chair Jerome Powell on Thursday. Most Asian currencies moved little on Wednesday, steadying from sharp losses in recent sessions as traders remained largely risk-averse. Underwhelming fiscal measures from China also dented regional sentiment, after Beijing did not outline any targeted measures to support private spending and the property market. The Japanese yen weakened further this week, with the USDJPY pair rising to nearly 155 yen on Tuesday. Uncertainty over Japan’s political and monetary policy outlook also battered the yen, amid bets that a gulf between U.S. and local rates will persist for longer under Trump.

Gold – XAU

Gold on Tuesday made its intraday high of US$2627.03/oz and low of $2589.62/oz. Gold is down by 0.812% at S$2589.87/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 2639-2800 keeping stop loss closing above 2800, targeting 2600-2590-2579 and 2560-2540-2510. Buy in between 2600-2540 with risk below 2540 targeting 2639-2650-2670 and 2,684-2700-2715

Silver - XAG

Silver on Monday made its intraday high of US$30.80/oz and low of US$30.16/oz settle down by 0.110% at US$30.69/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 30.70-28.50, targeting 32.10-32.60 and 33.10-33.80-34.20-34.90 with stop loss should be placed on the breakage below 26.00. Sell in between 31.70-33.30 with a stop loss above 33.00 targeting 33.80-33.10-32.50 and 32.10-31.70-31.10.

Oil - WTI

Crude Oil on Monday made an intra‐day high of US$68.96/bbl, an intraday low of US$67.63/bbl, and settled down by 0.266% to close at US$67.81/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 68.90-76.85 with stop loss at 77.00; targeting 69.90-69.00-67.90 and 67.00-66.10-65.05 Buy above 68.00-64.05 with risk daily closing below 64.00, targeting 69.02-70.00-70.90 and 71.65-73.00-73.90.

EUR/USD

EUR/USD of Monday made an intraday low of US$1.0594/EUR, a high of US$1.06625/EUR, and settled the day down by 0.278% to close at US$1.0619/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 1.0660-1.0960, targeting 1.0600 and 1.0540-1.0490 with stop-loss at daily closing above 1.1400. Buy above 1.0600-1.0485 with risk below 1.0450 targeting 1.0660-1.0700-1.0790 and 1.0870-1.0910-1.0960.

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.2718/GBP, a high of US$1.2872/GBP, and settled the day down by 0.893% to close at US$1.2946/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 1.2690-1.2380 with a target of 1.2750-1.2800.1.2890 and 1.2920-1.2990-1.3120 and 1.3210 with a stop loss closing below 1.2380. Sell in between 1.2790-1.3260 with targets at 1.2690-1.2600-1.2520 and 1.2450-1.2380 with a stop loss of 1.3300.

USD/JPY

USD/JPY on Monday made an intra‐day low of JPY154.91/USD an intraday high of 154.91/USD, and settled the day up by 0.140% at JPY154.84/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 155.00-156.50 with risk above 157.00 targeting 153.00-152.10-151.50 and 150.80-150.00-147.80. Long positions above 154.00-150.00 with targets of 153.70-154.00-154.49 and 154.90-155.30-156.00 with stops below 140.00.