Daily Markets

• Most Asian currencies weakened slightly on Tuesday, extending recent losses as traders remained risk-averse before a string of key economic readings this week. The Japanese yen was an outlier, firming slightly after sinking to near three-month lows in the prior session on heightened political uncertainty in the country. A Bank of Japan meeting is also on tap this week. Regional currencies were pressured by a strong dollar, as the greenback sat on recent gains before a slew of economic readings this week that are likely to factor into expectations for interest rates. Anxiety over the upcoming presidential election also kept traders biased towards the dollar. The Japanese yen’s USDJPY pair fell 0.2% on Tuesday, retreating slightly from near three-month highs after Finance Minister Katsunobu Kato said authorities were monitoring volatility in currency markets. His comments came after the yen weakened sharply on the results of a general election held on Sunday, where the ruling LDP-led coalition lost its majority. The results of the election heralded increased political uncertainty in the country, which could present difficulties for the BOJ in raising interest rates further. The central bank is widely expected to keep rates unchanged on Thursday. This notion had battered the yen even before Sunday’s elections, with the currency nursing steep losses through October. The dollar index and dollar index futures moved little in Asian trade, remaining close to three-month highs hit in recent sessions. The greenback was sitting on strong gains in October as a swathe of positive economic data spurred bets that the Fed will cut rates at a slower pace in the coming months. Economic readings due this week are set to offer more cues on this front. Third-quarter gross domestic product data is due on Thursday, followed by PCE price index data- the Fed’s preferred inflation gauge- and nonfarm payrolls data- both due on Friday. Positioning in the dollar also picked up amid increased bets that Donald Trump will beat Kamala Harris in the upcoming presidential election, with voting set for November 5. Trump’s policies are expected to be protectionist and inflationary, presenting a stronger outlook for the dollar. Most Asian currencies retreated on this notion, with traders now looking to more economic cues from the region this week.

Gold – XAU

Gold on Tuesday made its intraday high of US$2745.85/oz and low of $2724.57/oz. Gold is up by 0.437% at S$2741.99/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 2734-2770 keeping stop loss closing above 2770, targeting 2720-2700-2692 and 2680-2670-2650. Buy in between 2700-2640 with risk below 2640 targeting 2732-2,740 and 2750-2762-2,770.

Silver - XAG

Silver on Monday made its intraday high of US$33.96/oz and low of US$33.20/oz settle up by 0.234% at US$33.65/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 33.20-31.70, targeting 34.20-34.90-35.50 and 36.00-36.90 with stop loss should be placed on the breakage below 26.00. Sell in between 33.90-36.70 with a stop loss above 37.00 targeting 32.90-32.50-32.10 and 31.70-31.40-30.40.

Oil - WTI

Crude Oil on Monday made an intra‐day high of US$68.72/bbl, an intraday low of US$66.78/bbl, and settled down by 0.0111% to close at US$67.82/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 68.50-76.85 with stop loss at 77.00; targeting 67.90-67.00-66.10 and 65.05-64.70-64.00. Buy above 67.90-64.05 with risk daily closing below 64.00, targeting 68.50-69.20-70.00 and 70.90-71.65-73.00.

EUR/USD

EUR/USD of Monday made an intraday low of US$1.0781/EUR, a high of US$1.0826/EUR, and settled the day up by 0.185% to close at US$1.0813/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 1.0840-1.1400, targeting 1.0960 and 1.0850- 1.0785 with stop-loss at daily closing above 1.1100. Buy above 1.0800-1.0685 with risk below 1.0600 targeting 1..0870-1.0910-1.0960 and 1.1020-1.1120-1.1190.

GBP/USD

GBP/USD on Monday made an intra‐day low of US$1.2938/GBP, a high of US$1.3000/GBP, and settled the day up by 0.006% to close at US$1.2968/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 1.2920-1.2690 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 1.3050-1.3660 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 Monday made an intra‐day low of JPY152.40/USD an intraday high of 152.23/USD, and settled the day up by 0.19% at JPY152.23/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 153.90-156.50 with risk above 157.00 targeting 153.00-152.10-151.50 and 150.80-150.00-147.80. Long positions above 153.20-150.00 with targets of 153.70-154.00- with stops below 140.00.