The USD's upward trend tends to be modest after the release of PCE data.
The forecast for the USD suggests a slight incline, having received a minor boost after data indicated faster U.S. economic growth in the third quarter than previously reported. However, the dollar still declined by 3.2% in November, its worst month in a year, amid increasing expectations that the Fed will cut interest rates in the first half of 2024. The impact of this decline also continues as, broadly speaking, there is still a fairly significant downward trend, and this potential decline is expected to persist.
Calendar:
Technical Analysis
Continuation Bullish / Upward
Demand Level: 2031.07 - 2037.16
The prediction for Gold today tends to be bullish, despite the earlier decline following the release of the "Core PCE Price Index" data, albeit showing a weakening trend compared to the PCE data. However, today, following two consecutive positive monthly closures, there is a prospect that the Federal Reserve will soon cut interest rates, increasing the allure of gold as it doesn't yield any return. This can significantly drive the price of gold upward.
The movement on the chart appears to indicate a substantial correction. However, during such corrective phases, prices tend to resume their upward movement as the overall trend still indicates an upward trajectory.
Technical Analysis
Bullish Movement / Rise
Demand Level: 74.15 – 74.55
The prediction for Oil suggests a tendency to remain flat following the OPEC+ meeting that has concluded. This is influenced by the recent agreement reached, involving a production cut of 2 million barrels per day, which includes an extension of Saudi Arabia's voluntary production cut of 1 million barrels per day since July. Russia is set to reduce oil production by 500,000 barrels per day, and other OPEC+ member countries will also decrease production.
As for the current movement, it appears to be sideways/corrective for the time being, with a predicted upward trend, possibly after this correction phase ends or awaiting the decision from The Fed Chair Powell's speech later tonight.
Technical Analysis
Bearish Continuation
Supply: 148.475 - 148.180
The forecast for the USD tends to show a market anomaly. However, this impact is due to yesterday's news release, which inclined towards weakening the USD with the "Core PCE Price Index." Subsequently, after the release, there was a tendency for the USD to strengthen due to other supporting news. Nevertheless, this USD strengthening is relatively minor because the downward pattern against the USD is still showing strength, thus indicating the potential for the Yen to strengthen further. Today, there will be the "ISM Manufacturing PMI" news, which is predicted to weaken the USD, and ahead of the "Fed Chair Powell Speech," which is likely to indicate significant weakness for the USD or possibly not have a sufficiently significant or flat impact. The trend still supports a decline in the USD because the price briefly strengthened and then reverted to a decline in the strengthening of the Yen.
Technical Analysis
Bearish Continuation / Downward
Supply Levels: 1.35925 - 1.35753
The prediction for the USD suggests a continued decline, which will have a strong impact on the strengthening of the Canadian Dollar. This decline in the USD indicates that investors are less inclined towards the USD and are favoring the Canadian Dollar instead. Consequently, this will significantly benefit the Canadian Dollar in terms of trust and purchasing power among the Canadian population, ultimately impacting the strengthening of its economy. The trend still indicates a significant strengthening of the Canadian Dollar, supported by tonight's news indicating a decline in the USD.
Technical Analysis
Continuation Bullish / Upward
Demand Level: 35,759 - 35,500
The prediction for Hang Seng indicates a potential inclination towards an upward movement. Technically, there's a candlestick displaying uncertainty about further decline and has entered a support area, which could serve as a crucial point for a reversal. Comparatively, the price appears to be gaining strength from its previous level and has repeatedly returned to the support area, indicating a notable rejection of the decline and a potential significant upward movement. Some investors often capitalize on such opportunities due to the psychological aspect—indicating a likelihood of price continuation upwards due to the rejection of the downward movement.
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