Market Overview
This week, several major economic data releases are expected to influence global market movements. In Australia, the Reserve Bank of Australia (RBA) will announce its Cash Rate decision and release its accompanying Rate Statement on Tuesday. Market expectations suggest there is little chance of a rate cut this month. Later in the week, on Thursday, Australia will release its Employment Change and Unemployment Rate figures, providing critical insights into the country’s labor market performance.
In the United States, inflation and labor market data will take center stage. On Wednesday, the Consumer Price Index (CPI) report will be published, offering a key measure of inflation trends. Following this, Thursday will see the release of the Producer Price Index (PPI) and weekly Unemployment Claims data, which are expected to further clarify the state of the U.S. economy.
Canada will also see significant economic developments this week, with the Bank of Canada (BOC) releasing its rate decision and statement on Wednesday. Meanwhile, in Europe, the Swiss National Bank (SNB) is scheduled to announce its interest rate decision on Thursday, alongside the European Central Bank (ECB), which will also reveal its monetary policy direction. Rounding out the week in the UK, the Pound will be in focus as the United Kingdom releases its Gross Domestic Product (GDP) figures on Friday.
Market Analysis
GOLD
Prices remain stagnant, with limited support and a bearish outlook due to a stronger U.S. dollar. Technical indicators show mixed signals, with MACD gains but low momentum, suggesting a period of consolidation.
SILVER
After a brief rally, silver faces selling pressure. The MACD shows strengthening bearish momentum, and the RSI remains flat, indicating potential further declines.
DXY
The U.S. dollar weakened after falling below 105.840. Despite short-term weakness, the dollar is expected to recover in the long term, with bullish momentum reflected in technical indicators.
GBPUSD
The British pound is strengthening, driven by expectations of a U.S. rate cut. While technical signals are mixed, underlying buying momentum suggests potential gains for the pound.
AUDUSD & NZDUSD
Both the Australian and New Zealand dollars are facing significant selling pressure, with MACD showing increasing bearish momentum and RSI indicating weak buying interest.
EURUSD
The euro faces selling pressure, but oversold conditions could lead to a short-term reversal. Traders are watching for buying continuation based on technical signals.
USDJPY
The USD/JPY pair shows consolidation, with low momentum ahead of the Bank of Japan’s rate decision in December.
USDCHF
The Swiss franc has gained strength against the U.S. dollar, though overbought conditions suggest a potential pause in the rally.
USDCAD
The Canadian dollar remains strong, but caution is advised as it approaches overbought levels.
COT Report Analysis
- AUD – STRONG
- GBP – STRONG
- CAD – WEAK
- EUR – WEAK
- JPY – STRONG
- CHF – WEAK
- USD – WEAK
- NZD – WEAK
- GOLD – STRONG
- SILVER – STRONG
