Daily Markets

• The dollar hit three-month highs against the yen on Tuesday, but was little changed on the day against most major currencies as traders bided their time ahead of next week's U.S. election and a slew of incoming economic data. The loss of a parliamentary majority for Japan's ruling coalition in weekend elections muddied the political and monetary picture, and has been weighing on the yen. The dollar was last up 0.12% on the day at 153.47 yen. The BOJ announces its monetary policy decision on Thursday, and is widely expected to leave rates unchanged. This week's data slate includes the September U.S. core personal consumption expenditures price index - the Fed's preferred measure of inflation - on Thursday, as well as a flurry of jobs reports. Still, the dollar is heading for its largest monthly rise against a basket of major currencies in 2-1/2 years and holding near three-month highs ahead of data that could determine the path for Federal Reserve policy. U.S. Labor Department's Job Openings and Labor Turnover Survey, or JOLTS, showed job openings fell to a more than 3-1/2 years low in September and data for the prior month was revised down, a sign of a continually cooling labour market. Meanwhile, U.S. consumer confidence increased to a nine-month high in October as perceptions of the labour market improved. She said, however, she thought any downside for the dollar remained limited, given the inherent risk of the Nov. 5 election and Fed meetings the week after next. Recent data have highlighted the resilience of the U.S. economy, which, together with mounting market bets of a win by Republican candidate Donald Trump over his Democratic rival Kamala Harris in the election, have underpinned the dollar and pushed up Treasury yields. The dollar index has risen 3.6% so far in October, marking its best monthly performance since April 2022. It was last seen at 104.34 and is up this year against every major currency except the pound.

Gold – XAU

Gold on Tuesday made its intraday high of US$2774.66/oz and low of $2739.77/oz. Gold is up by 1.175% at S$2744.19/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 2780-2820 keeping stop loss closing above 2820, targeting 2770-2750-2734 and 2720-2700-2692. Buy in between 2760-2690 with risk below 2690 targeting 2780-2,798-2800 and 2810-2834-2,850.

Silver - XAG

Silver on Tuesday made its intraday high of US$34.52/oz and low of US$33.58/oz settle up by 2.29% at US$34.43/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 33.90-31.70, 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 34.30-36.70 with a stop loss above 37.00 targeting 33.80-33.10-32.50 and 32.10-31.70-31.10.

Oil - WTI

Crude Oil on Tuesday made an intra‐day high of US$68.32/bbl, an intraday low of US$66.54/bbl, and settled down by 0.750% to close at US$67.31/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 67.00-64.05 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 Tuesday made an intraday low of US$1.0768/EUR, a high of US$1.0825/EUR, and settled the day up by 0.0018% to close at US$1.0814/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 Tuesday made an intra‐day low of US$1.2957/GBP, a high of US$1.3015/GBP, and settled the day up by 0.297% to close at US$1.3069/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 1.2980-1.2690 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 Tuesday made an intra‐day low of JPY152.75/USD an intraday high of 153.86/USD, and settled the day up by 0.0704% at JPY153.33/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 153.00-150.00 with targets of 153.70-154.00-154.49 and 154.90-155.30-156.00 with stops below 140.00.