PUPrime In-Depth Market Analysis (Discussion)

Hi traders! My name is Davidson and I’m a market analyst for PU Prime. We are a broker that places heavy emphasis on forex education - and not just telling people what pips and spreads are.

We’re excited to be part of the FF community and share our research as well as discuss any market updates. We’ll be posting longer-term outlooks and in-depth fundamental analysis that we feel is lacking in much of the forex-trading research out there. Please feel free to ask any questions and participate in discussion here. We believe that understanding the fundamentals can take trading to the next level, far beyond just looking at technical analysis.

Some caveats, disclaimers, and ground rules:

 

1. This is not in any way to be construed as investment advice
2. This is longer-term analysis that might not be suitable for scalpers or even day traders. We are looking at the wider global macroeconomic environment, beyond trading economic calendar releases.
3. This thread is for discussions about the analysis at hand ONLY. Please get in touch with your account manager for any administrative queries
4. Please keep all discussions civil!

EUR/JPY Analysis: Navigating a Pessimistic Outlook

Executive Summary
In today's dynamic financial landscape, astute investors keep a close watch on the EUR/JPY pair, which is influenced by a confluence of factors within the Eurozone and Japan. In this article, we will delve into the recent economic developments, central bank policies, and potential currency interventions to provide insights and recommendations for those interested in trading EUR/JPY.

Key Events:
Eurozone Economy in Turmoil


Diagram 1.0 portrays the economic performance in Eurozone
The Eurozone's economic performance has been far from reassuring, with recent data from Markit Economics painting a gloomy picture. The Eurozone Manufacturing Purchasing Managers Index (PMI) and Services PMI fell short of market expectations, indicating a slowdown in both manufacturing and services sectors. The Eurozone Composite PMI also declined, highlighting broader economic concerns. These numbers are a red flag for those considering euro investments.


ECB's Policy Pivot
Amid this economic uncertainty, the European Central Bank (ECB) has made a pivotal decision by ending its rate hike cycle and maintaining its key rate at 4%. This shift is in response to declining inflation, geopolitical uncertainties, and slower economic growth. The ECB's stance reflects a desire to maintain economic stability rather than tighten monetary policy further. As a result, we can anticipate a softer euro, making it a less attractive investment option.


Japanese Yen's Predicament


Diagram 2.0: Indicating the yield differential between US-Japan
On the other side of the equation, the Japanese yen has faced relentless pressure from global investors. The Bank of Japan's reluctance to terminate its quantitative easing program has driven the yen to its weakest point since October 2022. The interest rate differential between Japan and the United States, combined with the carry trade strategy, has further diminished the appeal of the Japanese yen.

Carry Trade


Diagram 3.0: The Carry Trade Explained
Due to Japan's low-interest-rate environment, investors are inclined to borrow funds from the Bank of Japan and reinvest them in higher-interest-rate regions like the United States.



Japan's Reserves
It's important to note that Japan boasts the status of being the second-largest reserve holder in the global market. This means that the Bank of Japan wields substantial power to stabilize its currency. However, it remains uncertain when and to what extent the Bank of Japan will act, leaving investors in a state of anticipation.


Outlook and Recommendations:


EUR/JPY, H4
Trading Opportunities and Cautions
Diagram 3.0: The Carry Trade Explained.Currently, the Eurozone is facing economic challenges aggravated by the European Central Bank's decision to halt its monetary tightening. This is poised to exert additional downward pressure on the Euro, leaving the overall outlook decidedly pessimistic. On the flip side, the Japanese yen holds potential for a boost, courtesy of potential currency intervention by the Bank of Japan (BoJ).

However, it is essential to recognize that the market remains shrouded in uncertainties, making it nearly impossible for investors to predict when the BoJ might take action. Therefore, it is imperative for investors to stay vigilant, closely monitoring further market developments to identify potential trading signals and capitalize on emerging opportunities.

Market Update (31st Oct 2023)

Oil Plunges Amid Shifting Focus: Oil prices took a sharp downturn today as market attention shifted from Middle East tensions to the Federal Reserve's upcoming monetary policy update. Lingering uncertainties keep the energy market on edge, urging caution among investors.

Japanese Yen Rises on Bank of Japan's Moves: The Japanese yen surged to a two-week high against the US Dollar, propelled by speculation around the Bank of Japan's potential tweaks to its yield curve control policy. This development has enhanced the yen's appeal for traders.

US Equities Rally on Federal Reserve Sentiments: Today witnessed a strong surge in the US equity market, largely driven by bargain hunting and optimistic sentiments regarding the Federal Reserve's stance on interest rates. Expectations of a potential pause in the tightening cycle bolstered market confidence, with a keen eye also on Apple's upcoming earnings release.

US Dollar Retreats Amidst Market Uncertainties: With multiple significant events on the horizon, including the eagerly anticipated Nonfarm Payrolls report and the Federal Reserve's interest rate decision, the US Dollar experienced a retreat as investors adopted a cautious approach, bracing for potential volatility in the US market.

Gold Prices Slide After Breaching Milestone: Gold prices witnessed a decline today after breaching the psychologically significant $2000 level, driven by technical corrections. Market volatility looms large ahead of key data releases, such as the Nonfarm Payrolls, Unemployment Rate, and the US Fed Interest Rate decisions, fostering a prudent atmosphere for gold investors.

Looking Ahead: Stay Informed and Alert
With a persistently pessimistic global economic outlook and ongoing geopolitical tensions in the Middle East, it is crucial for investors to remain vigilant and closely monitor market developments. Given the significant events scheduled later this week, maintaining a proactive stance is essential for making informed investment decisions.

Market Update (1st November 2023)

Japanese yen: The Japanese yen witnessed a broad decline, reaching a 15-year low due to the perception of the Bank of Japan's belated and insufficient efforts to loosen its monetary policy. Recent measures, such as relaxing control over long-term rates, raised concerns of further yen devaluation.

US Dollar: The US Dollar surged significantly as investors sought refuge in the safe-haven currency amid a gloomy yen outlook. However, uncertainties loom ahead of the Federal Reserve's two-day monetary policy meeting, where market participants await signals indicating the Fed's future stance.

Crude Oil: Oil markets experienced declines but managed to stabilize after reaching crucial support levels. Weaker oil demand, attributed to disappointing economic data from China, was offset by bullish momentum stemming from ongoing Israel-Hamas tensions. China's contracting manufacturing and slowed non-manufacturing growth underscored challenges in the country's economic recovery, despite stimulus efforts.

Gold: Gold prices retraced due to technical corrections in anticipation of pivotal events later in the week. Investors closely monitored the Federal Reserve's monetary policy decisions, seeking trading signals. Additionally, the strengthening US Dollar exerted pressure on gold, which is denominated in dollars.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

USD/JPY: Navigating High Volatility in Today's Trade


USD/JPY, H1 (Technical Analysis)
USD/JPY is higher while currently testing the resistance level. However, MACD has illustrated increasing bearish momentum, while RSI isa t 67, suggesting the pair might enter overbought territory.

Resistance level: 151.55, 152.15
Support level: 150.95, 150.20


Fundamental:
Japanese Yen Weakens: The Japanese yen saw a broad decline, hitting a 15-year low, following the Bank of Japan's perceived inadequate efforts to loosen monetary policy. The bank's recent adjustments, including relaxing its control on long-term rates, were viewed as too late, triggering further yen devaluation. Market attention focused on the Bank of Japan's commitment to accommodative policies, coupled with downbeat inflation forecasts, intensifying yen sell-offs. The possibility of currency intervention remains, though its timing remains uncertain.

Potential Currency Intervention: Possibilities of currency intervention for the Japanese yen remain on the table, with the Bank of Japan's top currency diplomat indicating a willingness to respond to disorderly forex movements. However, investor confidence in the yen's stability remains weak, leading to continued monitoring of Japan's monetary policy developments.


For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Gold Prices Retrace Amidst Anticipation of Key Events (GOLD Analysis)


In today's market action, gold prices retraced due to technical corrections, setting the stage for a pivotal week ahead. Investors are keeping a keen eye on the Federal Reserve's upcoming monetary policy decisions, seeking crucial trading signals amidst an atmosphere of uncertainty. Furthermore, the strengthening US Dollar has exerted additional pressure on gold, a commodity denominated in dollars.

Testing Key Support at $1980
From a technical perspective, the overall trend for gold is currently testing a robust support level at $1980. This level has faced repeated tests in the recent past, and if gold fails to break below it, there's a possibility of a significant rebound. This view is supported by the fact that key indicators, such as the MACD and RSI, have ventured into oversold territory. Specifically, the MACD is signaling diminishing bearish momentum, while the RSI hovers around 31.

Geopolitical Tensions in the Middle East and Future Uncertainties
Although gold's appeal remains underpinned by persistent geopolitical tensions in the Middle East, traders should exercise caution ahead of a slew of upcoming events. The release of US ADP data, the FOMC Meeting Minutes, and the highly-anticipated Nonfarm Payroll and unemployment rate report on Friday will add substantial uncertainty to gold's overall trend. Investors are well-advised to stay vigilant and monitor these critical developments for essential trading signals.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Short Daily Updates (2nd November 2023)

US Dollar: The US Dollar retreated slightly after the Federal Reserve's decision to maintain interest rates, which led to a slide in two-year Treasury yields, reducing the dollar's appeal. Economic data from the US remained mixed, with some positive indicators, like ISM Manufacturing Prices and JOLTs Job Openings, but disappointing figures in ADP Nonfarm Employment Change and ISM Manufacturing PMI.

Gold: Weakening US Dollar provided support for gold prices, leading to a slight rebound. However, gold's future remains uncertain, with investors keeping a close watch on upcoming US economic data, particularly the Nonfarm Payrolls and US Unemployment rate scheduled for later this week.

Japanese Yen: The Japanese yen experienced a modest rebound, primarily due to expectations of potential currency intervention by the Bank of Japan, supporting demand for the currency.

Crude Oil: Oil prices continued to face downward pressure due to the overall pessimistic global economic outlook affecting oil demand. Recent downbeat economic data from China suggested ongoing economic challenges, despite previous stimulus measures. Nonetheless, concerns about potential supply disruptions remained due to geopolitical tensions in the Middle East, making it essential to monitor these developments for trading signals.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

GOLD Analysis

Attached Image (click to enlarge)

GOLD, H4

Gold Rebounds from Key Support: Eyes on US Job Data
Gold prices staged a modest recovery from a crucial support level at $1980, thanks in part to declining two-year US Treasury yields following the Federal Reserve's decision to hold interest rates steady. The economic landscape in the US painted a mixed picture, with ADP Nonfarm Employment Change for October and ISM Manufacturing PMI for October falling short of expectations at 113K and 46.7, respectively, compared to the consensus figures of 150K and 49. On the flip side, ISM Manufacturing Prices and JOLTs Job Openings outperformed market forecasts.

From a technical perspective, gold's overall trend rebounded slightly after testing the well-noted support at $1980. Uncertainties prevail, especially with the imminent release of crucial US jobs data (NFP and Unemployment Change). The lack of a clear market direction has prompted investors to keep a watchful eye on the $1980 support level. Should the commodity remain above this support, it might have the opportunity to extend its gains toward the psychological resistance level of $2000. However, if gold breaks below this critical support, it could potentially decline further, targeting the next support level at $1960. The MACD indicator indicates diminishing bearish momentum, implying the potential for higher trade, while the RSI at 48, near the midline, suggests a lack of decisive direction.

Mixed economic data, combined with ongoing uncertainties surrounding the Federal Reserve's monetary policy decisions, Investors are strongly advised to maintain vigilance over US data, with a particular focus on forthcoming job-related reports, including Nonfarm Payrolls and the Unemployment rate, to glean valuable trading signals.

Resistance level: 2005.00, 2025.00
Support level: 1980.00, 1960.00

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Short Daily Updates (3rd November 2023)

GBP/USD: Pound Sterling gained momentum as the Bank of England maintained interest rates at a 15-year high due to rising UK inflation. The Monetary Policy Committee's decision to keep rates at 5.25% signaled their reluctance to cut rates soon.

US Dollar: The US Dollar slipped further as job data showed a rise in Initial Jobless Claims from 212K to 217K, exceeding expectations at 210K, dampening optimism about the US economic recovery. Market watchers await critical data, including Nonfarm Payrolls and the Unemployment Rate.

Gold: Gold prices showed resilience, treading water as investors exercised caution while awaiting key US job data to provide direction amid ongoing market uncertainties.

US Equity: US stocks gained as US Treasury yields dropped, reflecting the Federal Reserve's dovish stance on unchanged interest rates, emphasizing data dependency. Investors are keeping an eye on forthcoming US economic data for trading signals.

Apple's Strong Q4 Results: Apple exceeded expectations in its Q4 performance, reporting an earnings per share of $1.46 on revenue of $89.5 billion, surpassing Wall Street estimates. The tech giant's robust performance highlights its resilience and growth in key revenue segments.

Crude Oil: Oil prices staged a modest recovery as the Bank of England and the Federal Reserve chose to keep interest rates unchanged, potentially signaling an end to the tightening monetary cycle. Increased risk appetite and a weaker US Dollar have boosted demand for dollar-denominated oil, while Middle East developments are closely watched for market cues.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Gold Prices Soar to $2000 Psychological Level Post NFP

Gold prices initially surged, reaching the psychological level of $2000 in response to the downbeat US jobs report. The decline in US Treasury yields, attributed to speculation that the Federal Reserve might halt its tightening monetary cycle, contributed to this rise. The Bureau of Labor Statistics reported that US Nonfarm Payrolls increased by only 150,000 in October, worse than the anticipated 180K, and the US Unemployment rate came in at 3.90%, worse-than-expectations of 3.80%.

However, following the attainment of the $2000 psychological level, gold prices experienced a healthy retracement. Currently, global investors continue to closely monitor this psychological level of $2000. Furthermore, the easing of tensions in the Middle East, with global leaders making efforts to resolve the Hamas-Israel conflict, diminished the safe-haven appeal of gold. In a surprise visit, Secretary of State Antony Blinken expanded US diplomatic efforts in the Middle East, aiming to prevent an escalation of the Israel-Hamas conflict. Additionally, he held discussions with Palestinian President Mahmoud Abbas in the West Bank, exploring the potential role of the Palestinian Authority in shaping the future of the Gaza Strip.

From a technical standpoint, in the short term, given the mixed fundamentals in the gold market, it is likely that the commodity will consolidate within a range between the resistance level of $2000 and our long-expected support level at $1980.00. Investors are advised to continue monitoring this consolidation range, as any breakout above or below it is expected to provide clearer direction for traders and global investors.

Resistance level: 2000.00, 2025.00
Support level: 1980.00, 1960.00

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Short Daily Updates (6th November 2023)

US Dollar: The US Dollar weakened as recent employment figures showed a significant slowdown in job growth, pushing the unemployment rate to a nearly two-year high of 3.90%. The Bureau of Labor Statistics reported that US Nonfarm Payrolls increased by only 150,000 in October, missing market expectations of 180%, while the US Unemployment rate surpassed the projected 3.80% to reach 3.90%.

US Equity Market: US equity markets rallied, driven by signs of a cooling labor market and a softer services sector. This development heightened expectations that the Federal Reserve might conclude its tightening monetary cycle. US two-year Treasury yields fell by 15 basis points to 4.84%, leading to robust gains across Wall Street. The S&P 500 had its most substantial weekly growth in 2023, mainly due to the drop in US Treasury yields.

Crude Oil: Diplomatic efforts by global leaders to resolve the Israel-Hamas conflict have reduced the likelihood of oil supply disruptions, causing a drop in oil prices. However, a bearish economic outlook, fueled by a series of underwhelming economic reports from the US, UK, EU, and China, has raised doubts about the sustainability of oil demand, further weighing on oil prices.

Gold: Gold prices initially surged after disappointing US employment data was released. The data, signaling a slowdown in the US job market, increased demand for the safe-haven gold. Nevertheless, after reaching the psychological level of $2000, gold experienced a healthy retracement. Additionally, reduced geopolitical tensions in the Middle East limited the gains in the safe-haven gold.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Short Daily Updates (7th November 2023)

Dollar: The US Dollar is under pressure as weak economic data, including disappointing Nonfarm Payroll figures and rising unemployment rates, lead to expectations of a more dovish stance from the Federal Reserve. This shift in market sentiment is driving the Dollar's decline.

US Equity: US equities continue to rise as US Treasury yields fall. Market sentiment hints at an anticipated shift in the Federal Reserve's policy, from tightening to expansion, due to signs of a US economic slowdown. Positive earnings reports from major US corporations contribute to this optimistic outlook.

Gold: Gold prices are consolidating as various factors create uncertainty for investors. Efforts to ease tensions in the Middle East have reduced gold's appeal as a safe-haven asset. However, the weakening US Dollar, in response to falling US Treasury yields, is providing some support for gold prices.

Crude Oil: Concerns about potential oil supply disruptions have eased after progress was reported in efforts to de-escalate the Israel-Hamas conflict. Major oil suppliers, including Saudi Arabia and Russia, are maintaining supply reductions, which supports the oil market. Reuters reports indicate that this trend is expected to continue until year-end.

What to Watch For? Key factors for investors to monitor include the November Michigan Confidence Survey, speeches by Fed Chair Jerome Powell, and other official statements from the Federal Reserve. Staying informed about these developments and economic data will be essential for trading decisions.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Short Daily Updates (8th November 2023)

Dollar's Uptick: The US Dollar saw a rebound, partly due to technical corrections and bargain hunting. All eyes are now on the Federal Reserve as investors eagerly await clues from their upcoming statement. Expectations are leaning towards a potential pause in rate hikes after last week's less optimistic job data.

US Equities Shine: US stock markets, led by the S&P 500 and Nasdaq, are on a bullish run, marking their longest streak of gains in two years. This rally is supported by the decline in US Treasury yields and positive signals in US-China relations, prompting investors to shift towards higher-risk US equities.

Oil's Slump: Oil prices have taken a hit, hitting seven-month lows as concerns arise from disappointing trade data in China. China's exports contracted more than expected in October, leading to the weakest trade surplus in 17 months.

Gold's Decline: Gold continues to slide as investors embrace a risk-on sentiment. The improved US-China relations and diminishing tensions in the Middle East are contributing to this trend. The upcoming meeting between leaders Xi Jinping and Joe Biden has further fueled optimism.

Coming Up: The market's focus this week is fixed on speeches by Fed Chair Jerome Powell. His words will be closely monitored to gauge if he maintains his hawkish stance, especially in light of his previous comments on keeping US rates elevated for an extended period.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Gold Analysis



Gold Extends Losses Amid Improved Risk-on Sentiment
The gold market continues its decline, reflecting a shift in market sentiment towards risk-on behavior. This change is attributed to the easing of tensions in the Middle East and positive developments in US-China relations. Recent high-level meetings have contributed to improving the relationship between the two nations, US and China. Vice President Han Zheng in Beijing noted that these discussions have sent positive signals and raised international expectations for enhanced US-China relations.

From a technical perspective, gold prices are currently trading lower, and traders are advised to closely monitor the market's consolidation range, situated between the resistance level of $1980.00 and the support level of $1960.00. A breakout above or below this range will provide a clearer direction for the gold market. Fundamentally, the outlook for gold appears to be shifting towards bearish, given the positive developments in US-China relations and the reduced tensions in the Middle East.

On the indicator front, the Moving Average Convergence Divergence (MACD) suggests an increasing bearish momentum, while the Relative Strength Index (RSI) stands at 56. This RSI level implies that the commodity may continue its losses after retreating sharply from the overbought territory. If gold successfully breaks below the support level of $1960, the next target to monitor is $1945.00. Clients are advised to stay updated with these developments in the gold market.

Resistance level: 1980.00, 2000.00
Support level: 1960.00, 1945.00

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Short Daily Updates (9th November 2023)

US Dollar Awaits Powell's Speech: The US Dollar consolidates while markets await Fed Chair Jerome Powell's statement, with expectations of a weaker economy affecting its appeal. Powell refrained from policy comments in his recent speech, leaving investors looking for Federal Reserve signals.

US Equities Extend Bullish Run: The US equity market maintains its bullish course, though at a slower pace, awaiting the Fed's clearer monetary policy statement. A retreat in US Treasury yields has fueled speculation that the central bank may conclude its rate-hike cycle.

Monetary Policy Clarity Sought: Investors look to Powell's speech for monetary policy guidance in the evolving financial landscape.

Gold Prices Slide on Risk-On Sentiment: Prevailing risk-on sentiment prompts a decline in gold prices. Optimism about improved US-China relations has shifted sentiment towards higher-risk assets.

Oil Hits Four-Month Lows: Oil prices drop for a second day, reaching four-month lows due to a grim global economic outlook and downbeat US inventory data releases.

API Reports Massive Oil Inventory Increase: The American Petroleum Institute's data reveals a substantial increase in oil inventories, surpassing expectations.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Gold Analysis


Persistent Risk-On Sentiment Pressures Safe-Haven Gold Prices

Gold prices continue their downward trajectory as a prevailing risk-on sentiment takes hold in the global financial markets. The improved prospects of US-China relations have steered investor sentiment toward higher-risk assets. Expectations surrounding a crucial meeting between US President Joe Biden and Chinese leader Xi Jinping during the Asia-Pacific Economic Cooperation summit in San Francisco have fostered optimism. Recent high-level dialogues between the two nations have conveyed positive signals to the international community.

From a technical perspective, the overall trend for the gold market appears bearish. Gold prices have successfully broken below the previous support level of $1960.00, indicating an increased likelihood of further declines. Moreover, the MACD indicator reflects growing bearish momentum, enhancing the prospects of a bearish trend for gold. In the short term, a support level around $1940.00 per troy ounce comes into focus.

However, if gold prices fail to extend their losses, there may be room for a modest rebound. In such a scenario, a retest of the resistance level at $1960.00 becomes possible. A decisive breakout above this resistance level could signal a stop-loss point, potentially offering a shift in market dynamics.

Resistance level: 1960.00, 1980.00
Support level: 1940.00, 1915.00

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Gold Analysis:



Gold Surges Despite Fed's Hawkish Stance on Downbeat Jobs Data
Fundamentally, gold prices displayed a significant resurgence, spurred by a disappointing US Jobs report that underscored ongoing challenges within the American labor market. Notably, the report's revelation of Initial Jobless Claims surpassing expectations contributed to a dampened outlook for job market recovery. However, the Federal Reserve's adoption of a hawkish stance mitigated the impact on gold prices. Simultaneously, the rise in US Treasury yields and the strengthening of the US Dollar contributed to a tempered attraction for the safe-haven asset.

From a technical perspective, the current trend for the gold market has notably shifted towards a bullish trajectory. Observing the latest H1 candlestick, the market successfully broke out above the critical resistance level of $1960.00. Despite a subsequent slight retreat, the market's failure to close below the $1960 level suggests potential further gains, with the possibility of an extension toward the subsequent resistance level of $1980.00.

However, it is crucial to note the mixed nature of gold's fundamental landscape, wherein the impact of downbeat Initial Jobless Claims data is counterbalanced by the implications of the Federal Reserve's hawkish statements, contributing to a nuanced market sentiment. Therefore, gold buyers are advised to remain vigilant and consider implementing stop-loss measures to manage risks should the commodity experience a decline below the $1960 level.

Resistance level: 1980.00, 2005.00
Support level: 1960.00, 1940.00

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Short Daily Updates (10th November 2023)

US Dollar: US Dollar rebounds on Powell's hawkish tone, emphasizing a potential retention of a tightening monetary cycle to combat inflation.

US Jobs Data: US Initial Jobless Claims slightly increase but fail to impact the market as investors remain focused on Powell's remarks.

US-Japan Yields Differential: USD/JPY surges to one-week high, accentuating the yield differential between Japan and the US, drawing investor attention.

Gold Market: Gold prices recover as disappointing US Jobs report boosts demand for safe-haven assets, but gains are tempered by the Fed's hawkish stance and a strong US Dollar.

Crude Oil: Crude oil sees an initial rebound but faces downward pressure due to concerns over global economic slowdowns and a stronger US Dollar.

US Equity Market: The US equity market ends winning streaks as Powell's hawkish statement triggers a sharp rise in US Treasury yields, leading to a halt in the S&P 500 and Nasdaq's recent advances

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Short Daily Updates (13rd November 2023)

US Dollar: The US Dollar surged on Friday driven by hawkish statements from Federal Reserve members, especially emphasized by Federal Reserve Bank of San Francisco President Mary Daly, hinting at a prolonged tightening monetary policy cycle.

Gold: Gold prices experienced a retreat amid the Dollar's strength following last week's hawkish comments from multiple Federal Reserve members. Investors are advised caution amidst uncertainties and upcoming Fed Chair Jerome Powell talks.

Pound: Pound Sterling remained resilient, supported by positive economic data, with the UK GDP surpassing expectations at 0.60%. However, market reaction was muted as investors awaited key events to gauge the potential trend for Pound Sterling.

Crude Oil: Oil prices showed a modest rebound on OPEC+ support, with Iraq expressing backing for production cuts. Concerns over a global economic slowdown, especially in China, tempered gains as recent downbeat economic data raised doubts about policymakers' ability to stimulate growth.

US Equity Market: The US equity market extended gains, recovering lost ground as Treasury yields stabilized. Despite positive momentum, investors are cautioned following Moody's negative outlook on the US credit rating, attributed to fiscal deficits and declining debt affordability.

Vigilance on CPI Data: Investors remain vigilant for releasing the US Consumer Price Index (CPI) data for October, seeking insights into the Fed's battle against inflation, which could influence potential movements in the US Dollar and broader market dynamics.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)

Short Daily Updates (14th November 2023)

Dollar Stagnant Ahead of CPI: The US Dollar remains flat as investors await the October Consumer Price Index (CPI), expecting a 0.10% monthly rise. Analysts foresee potential US inflation moderation due to rising borrowing costs and subdued consumer demand.

USD/JPY Volatility Amid Intervention Rumors: USD/JPY sees significant volatility, reaching a yearly high near 152 before correcting sharply. Persistent Bank of Japan intervention rumors add uncertainty, cautioning investors ahead of the US CPI release.

Mixed Sentiments in US Equities: The US equity market holds a steady course with varied sentiments. Energy stocks show positive momentum, buoyed by a surge in oil prices. Boeing climbs significantly on the back of a substantial $52 billion order from Emirates, while Tesla experiences a notable surge with updates to its Cybertruck agreement. However, Moody's credit rating outlook cut and the looming threat of a government shutdown contribute to a subdued overall market appeal.

Oil Surges on JP Morgan and OPEC Optimism: Oil prices surge following JP Morgan's advice to shift investments to commodities, specifically oil. OPEC's optimistic stance strengthens oil fundamentals, prompting an upward revision in the 2023 oil demand forecast.

Gold's Rebound as Safe Haven: Gold prices rebound amid market uncertainties and ahead of the CPI release. Focus also on the US-China summit, with optimism that a successful meeting could influence gold's appeal.

For more in-depth market insights, please visit our website (https://puprime.com/market-insights/)