Daily Markets

• Most Asian currencies were largely muted on Wednesday ahead of the U.S. Federal Reserve’s interest rate decision due later in the day, while the Bank of Japan kept rates unchanged as expected. Meanwhile, bucking the regional trend, the Indonesian rupiah fell sharply ahead of the Bank Indonesia interest rate decision due later on Wednesday. The US Dollar Index was largely steady at 103.29 in Asian trading as of 03:13 GMT, remaining slightly above a five-month low it reached last week. The Bank of Japan (BOJ) maintained its short-term interest rate at 0.5% on Wednesday, aligning with market expectations. This decision reflects the central bank’s cautious approach amid global economic uncertainties, including potential impacts from rising U.S. tariffs. BOJ Governor Kazuo Ueda is scheduled to provide further insights into the bank’s policy considerations at a press conference later today. Japan’s inflation rate has been on an upward trajectory, reaching 4.0% in January 2025, the highest since January 2023. Concurrently, nominal wages increased by 2.8% year-on-year in January. The central bank said it expects underlying consumer inflation to increase gradually in the coming months. This could motivate the BOJ to further hike rates, after its recent one in January. The Federal Reserve’s two-day policy meeting started overnight, where the central bank is expected to hold interest rates unchanged at the end of the meeting on Wednesday. Investors will closely scrutinize the Fed’s commentary on recent trade policies, including tariffs imposed by the Trump administration, which have heightened fears of a potential recession. Investors were cautious, leading to muted moves in the region. Reuters report showed that Indonesia’s central bank has intervened in currency markets, including spot forex, non-deliverable forward, and bond markets. A Bank Indonesia (BI) official told Reuters the rupiah was affected by global factors and spillover from Tuesday’s stock index decline.The BI is expected to keep interest rates unchanged on Wednesday to shield the rupiah from further declines amid rising global trade tensions.

Gold – XAU

Gold on Tuesday its intraday high of US$3038.14/oz and low of $2999.37/oz. Gold is up by 1.090% at US$3033.73/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 3039-3077 keeping stop loss closing above 3077, targeting 3012-3000-2,970 and 2960-2245-2930. Buy in between 3012-2900 with risk below 2900 targeting 3039-3050-3059 and 3069-3077.

Silver - XAG

Silver on Tuesday ts intraday high of US$34.21/oz and low of US$33.72/oz settle up by 0.544% at US$33.98/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 33.50-31.10, targeting 33.80-34.20-34.45 and 34.85-35.25-35.50-36.00 with stop loss should be placed on the breakage below 31.00. Sell in between 34.05-36.00 with a stop loss above 36.00 targeting 33.50-33.10-32.60 and 32.10-31.60-30.90.

Oil - WTI

Crude Oil on Tuesday ‐day high of US$68.44/bbl, an intraday low of US$66.41/bbl, and settled down by 1.011% to close at US$66.51/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 67.00-74.85 with stop loss at 75.00; targeting 65.60-65.00-64.50 and 63.90-63.10. Buy above 66.50-63.05 with risk daily closing below 63.00, targeting 66.00-66.55-67.00 and 67.90-68.55-69.00.

EUR/USD

EUR/USD on Tuesday an intraday low of US$1.0891/EUR, a high of US$1.0954/EUR, and settled the day up by 0.189% to close at US$1.0943/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 1.0890-1.1035, targeting 1.0800-1.0725-1.0650 and 1.0600-1.0540-1.0490 with stop-loss at daily closing above 1.1035. Buy above 1.0890-1.0490 with risk below 1.0490 targeting 1.0935 and 1.0990-1.1035.

GBP/USD

GBP/USD on Tuesday low of US$1.2910/GBP, a high of US$1.3009/GBP, and settled the day up 0.108% to close at US$1.3001/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 1.2960-1.2380 with a target of 1.2920-1.2960-1.2990 and 1.3040-1.0390-1.3140 with a stop loss closing below 1.2380. Sell in between 1.2990-1.3140 with targets at 1.2920-1.2850-1.2790-1.2753 and 1.2660-1.2590-1.2510 with a stop loss of 1.3140.

USD/JPY

USD/JPY on Tuesday an intra‐day low of JPY149.09/USD an intraday high of 149.92/USD, and settled the day up by 0.0569% at JPY149.22/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 149.60-159.50 with risk above 160.00 targeting 148.00-147.10-146.50 and 146.00-145.20-144.50. Long positions above 149.10-143.50 with targets of 148.00-148.60-149.00 and 150.00-150.60-151.10 with stops below 143.00.