Daily Markets

• The U.S. dollar edged marginally higher Wednesday, helped by upbeat economic data, but gains are limited as uncertainty over trade policies and deficit worries remain. At 06:45 ET (10:45 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, gained 0.1% to 99.500, but remained 8% lower this year to date as investors look for alternatives to U.S. assets. The dollar received a boost on Tuesday after the release of data showing U.S. consumer confidence in May was much better than expected. However, new orders for durable goods also plunged by the most in six months in April as the flip-flopping tariff salvos take a toll on the economy and businesses. Markets have also been sensitive to the deteriorating U.S. debt profile, exacerbated by Moody’s downgrade of the U.S. sovereign credit rating on May 16. Traders will keep an eye on the minutes from the May Fed meeting, due later in the session, for clues of future monetary policy amid a period of economic uncertainty. Federal Reserve Bank of Minneapolis President Neel Kashkari on Tuesday called for keeping interest rates steady until there is more clarity on how higher tariffs affect inflation, warning against "looking through" the impact of such supply price shocks. In Europe, EUR/USD traded 0.1% higher to 1.1334, with the single currency stabilizing after dropping 0.5% on Tuesday. Data released earlier Wednesday showed that France’s economy grew slightly in the first quarter, with the final data from statistics office INSEE confirming the preliminary reading of 0.1%. Additionally, the number of people out of work in Germany rose at a faster pace than expected in May, approaching the 3 million mark for the first time over the last 10 years. The European Central Bank is scheduled to meet on June 5, with financial markets expecting that it would lower its key deposit facility rate to 2.00% from 2.25% - which would be the ECB’s eighth rate cut in a row. GBP/USD rose 0.1% to 1.3516, after data showed that British grocery price inflation jumped to 4.1% for the four weeks to May 18, its highest level since February last year. In Asia, USD/JPY traded 0.1% lower to 144.15, with Japan’s yen steady after dropping 1% on Tuesday following a report by Reuters that Japan will consider trimming issuance of super-long bonds after a sharp rise in yields in recent weeks.

Gold – XAU

Gold on Tuesday its intraday high of US$3325.45/oz and low of $3276.40/oz. Gold is down by 0.371% at US$3288.55/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 3300-3420 keeping stop loss closing above 3420, targeting 3287 and 3274-3244-3227. Buy in between 3270-3201 with risk below 3200 targeting 3287-3300-3320 and 3345-3358-3370.

Silver - XAG

Silver on Wednesday its intraday high of US$33.41/oz and low of US$32.89/oz settle down by 0.872% at US$32.95/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 33.10-27.10, targeting 33.90-34.30 and 34.60-35.00 with stop loss should be placed on the breakage below 27.00. Sell in between 33.50-35.60 with a stop loss above 34.00 targeting 32.50-31.90-30.90 and 30.50-29.90-29.20.

Oil - WTI

Crude Oil on Wednesday high of US$62.64/bbl, an intraday low of US$60.61/bbl, and settled up by 1.204% to close at US$61.52/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 62.50-64.00 with stop loss at 64.00; targeting 60.25-59.80-59.25 and 55.50-54.75-54.00. Buy above 62.00-52.00 with risk daily closing below 52.00, targeting 62.20-63.15 and 63.52-64.00.

EUR/USD

EUR/USD on Wednesday an intraday low of US$1.12833/EUR, a high of US$1.1344/EUR, and settled the day down by 0.289% to close at US$1.1288/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 1.1290-1.1740, targeting 1.1300 and 1.1250-1.1200 with stop-loss at daily closing above 1.1035. Buy above 1.1240-1.1010 with risk below 1.1010 targeting 1.1290-1.1340-1.1390 and 1.1420-1.1450-1.1470.

GBP/USD

GBP/USD on Wednesday low of US$1.3448/GBP, a high of US$1.3521/GBP, and settled the day down 0.289% to close at US$1.3462/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 1.3410-1.3040 with a target of 1.3430-1.3600-1.3645-1.3700 and 1.3750-1.3790-1.1384 with a stop loss closing below 1.3040. Sell in between 1.3470-1.1385 with targets at 1.3400-1.3360-1.3300 and 1.3250-1.3190-1.3140 with a stop loss of 1.3185.

USD/JPY

USD/JPY on Wednesday an intra‐day low of JPY143.84/USD an intraday high of 145.07/USD, and settled the day up by 0.318% at JPY144.74/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (152.35), 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 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 146.10-149.00 with risk above 149.00 targeting 145.20-144.50-143.90 and 143.00-142.50-141.90. Long positions above 143.00-138.00 with targets of 143.90-146.10-146.60-147.40 and 148.10-148.90-149.35 with stops below 138.00.