Daily Markets

• Most Asian currencies moved little on Friday, while the dollar steadied ahead of more cues on U.S. interest rates and the economy from key nonfarm payrolls data due later in the day. Sentiment towards regional markets remained strained after the onset of renewed trade tensions between the U.S. and China earlier this week. Markets were watching for any dialogue between U.S. President Donald Trump and his Chinese counterpart Xi Jinping. The Chinese yuan remained weak, with the USD/CNY pair hovering close to 7.3 yuan. The currency had weakened sharply as onshore markets reopened from the Lunar New Year holiday this week. A rally in the Japanese yen- on growing signs that the Bank of Japan will hike interest rates further- now appeared to have wound down, although the USD/JPY pair remained on track for its best week since November. The dollar index and dollar index futures steadied in Asian trade, although they were nursing some losses for the week amid mixed signals from Trump on trade tariffs. Focus was squarely on nonfarm payrolls data for January, due later in the day, for more cues on the labor market. Traders were seen bracing for a potentially strong payrolls reading, amid continued signs of resilience in the U.S. labor market. Still, January’s data may reflect some disruptions caused by the California wildfires at the beginning of the year. Strength in the labor market gives the Federal Reserve more headroom to keep interest rates unchanged for longer- a scenario that presents pressure for Asian markets The central bank recently signaled that it had no intention of cutting interest rates in the near-term, amid concerns over sticky inflation and uncertainty over Trump’s policies The yen was a standout performer in Asia this week, with the USD/JPY pair set to fall about 2.3%- its biggest weekly drop since November. The Japanese currency was buoyed chiefly by increased bets that the BOJ will have enough impetus to raise interest rates even further in the coming months. Strong wage and household spending data factored into these expectations, as did hawkish comments from some BOJ board members. The BOJ is expected to raise rates by at least 50 basis points, bringing them to 1% by end-2025. Broader Asian currencies were largely muted.

Gold – XAU

Gold on Thursday its intraday high of US$2873.15/oz and low of $2833.93/oz. Gold is down by 0.403% at US$2855.52/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 2,862-2,920 keeping stop loss closing above 2920, targeting 2849-2738-2726-2694. Buy in between 2840-2749 with risk below 2749 targeting 2862-2870-2880 and 2900-2920.

Silver - XAG

Silver on Thursday its intraday high of US$32.40/oz and low of US$31.72/oz settle up by 0.238% at US$32.18/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 32.10-27.50, targeting 32.50 and 33.10-33.80-34.20 with stop loss should be placed on the breakage below 27.00. Sell in between 32.90-34.30 with a stop loss above 35.00 targeting 32.00-31.30-30.90 and 29.90-29.10-28.60.

Oil - WTI

Crude Oil on Thursday intra‐day high of US$71.58/bbl, an intraday low of US$70.76/bbl, and settled down by 0.680% to close at US$70.34/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 71.00-83.85 with stop loss at 84.00; targeting 72.20-71.70-71.00 and 70.39-69.50. Buy above 70.40-64.05 with risk daily closing below 64.00, targeting 74.05-75.70-76.50 and 77.10-77.80-78.85..

EUR/USD

EUR/USD on Thursday made an intraday low of US$1.0351/EUR, a high of US$1.0405/EUR, and settled the day down by 0.177% to close at US$1.0382/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 1.0390-1.0840, targeting 1.0340 and 1.0290-1.0210 with stop-loss at daily closing above 1.1400. Buy above 1.0320-1.0110 with risk below 1.0110 targeting 1.0400 and 1.0490-1.0540-1.0600.

GBP/USD

GBP/USD on Thursday low of US$1.2359/GBP, a high of US$1.2508/GBP, and settled the day up by 0.567% to close at US$1.2433/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 1.2410-1.2040 with a target of 1.2510-1.2590-1.2650-1.2750 with a stop loss closing below 1.2040. Sell in between 1.2510-1.2960 with targets at 1.2440-1.2380-1.2310 and 1.2210-1.2150-1.2070 with a stop loss of 1.3000.

USD/JPY

USD/JPY on Thursday an intra‐day low of JPY151.23/USD an intraday high of 152.88/USD, and settled the day down by 0.768% at JPY151.30/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 152.00-159.50 with risk above 160.00 targeting 156.00-155.25-154.30 and 153.80-153.00-152.10. Long positions above 151.50-149.00 with targets of 153.00-154.30-155.25 and 156.00-156.50-157.20 with stops below 149.00.