Here are the Top Market Analysis for the 12th of October, 2023.

Currencies (Forex – FX)

• USD: The US dollar index (DXY) is trading sideways this morning, after rising to a new 20-year high yesterday. The dollar has been supported by rising interest rates in the US and expectations that the Federal Reserve will continue to tighten monetary policy aggressively. However, the dollar could face some headwinds today if US inflation data comes in lower than expected.
• EUR: The euro is trading slightly higher against the US dollar this morning, but remains under pressure overall. The euro has been weighed down by concerns about a recession in the eurozone and the ongoing war in Ukraine. However, the euro could find some support today if US inflation data comes in lower than expected.
• GBP: The British pound is trading slightly higher against the US dollar this morning, but remains near its lowest level in decades. The pound has been weighed down by concerns about a recession in the UK and the ongoing political turmoil. However, the pound could find some support today if US inflation data comes in lower than expected.
• JPY: The Japanese yen is trading slightly lower against the US dollar this morning, but remains near its highest level in decades. The yen has been supported by safe-haven flows amid rising global economic uncertainty. However, the yen could face some headwinds today if US inflation data comes in higher than expected.
• AUD: The Australian dollar is trading slightly higher against the US dollar this morning, after falling to a new 2-year low yesterday. The Aussie has been weighed down by concerns about a slowdown in the Chinese economy. However, the Aussie could find some support today if US inflation data comes in lower than expected.
• NZD: The New Zealand dollar is trading slightly higher against the US dollar this morning, after falling to a new 2-year low yesterday. The Kiwi has been weighed down by concerns about a slowdown in the global economy. However, the Kiwi could find some support today if US inflation data comes in lower than expected.
• CAD: The Canadian dollar is trading slightly higher against the US dollar this morning, but remains near its lowest level in decades. The Loonie has been weighed down by concerns about a recession in Canada and the ongoing weakness in oil prices. However, the Loonie could find some support today if US inflation data comes in lower than expected.

Metals

• Gold: The gold spot price is trading in a bullish trend, with support at $1,860 and resistance at $1,900. A break above $1,900 would open the door to further gains towards $1,950 and $2,000.
• Silver: The silver spot price is trading in a bullish trend, with support at $22.00 and resistance at $22.50. A break above $22.50 would open the door to further gains towards $23.00 and $23.50.
• Platinum: The platinum spot price is trading in a bullish trend, with support at $920 and resistance at $950. A break above $950 would open the door to further gains towards $975 and $1,000.
• Palladium: The palladium spot price is trading in a bullish trend, with support at $2,100 and resistance at $2,150. A break above $2,150 would open the door to further gains towards $2,200 and $2,250.
• Copper: The copper spot price is trading in a bullish trend, with support at $3.80 and resistance at $3.90. A break above $3.90 would open the door to further gains towards $4.00 and $4.10.
• Aluminum: The aluminum spot price is trading in a bullish trend, with support at $2.40 and resistance at $2.50. A break above $2.50 would open the door to further gains towards $2.60 and $2.70.
• Nickel: The nickel spot price is trading in a bullish trend, with support at $22.00 and resistance at $22.50. A break above $22.50 would open the door to further gains towards $23.00 and $23.50.

Commodities

• Oil: Oil prices are trading slightly lower this morning, but remain near their highest level in weeks. Oil has been supported by strong demand from China and other emerging economies. However, oil could face some headwinds today if US inflation data comes in higher than expected. The WTI crude oil spot price is trading in a bullish trend, with support at $83.00 and resistance at $85.00. A break above $85.00 would open the door to further gains towards $87.00 and $90.00.
• Natural gas: Natural gas prices are trading slightly lower this morning, but remain near their highest level in months. Natural gas has been supported by strong demand from the power sector. However, natural gas could face some headwinds today if US inflation data comes in higher than expected. The Henry Hub natural gas spot price is trading in a bullish trend, with support at $3.30 and resistance at $3.50. A break above $3.50 would open the door to further gains towards $3.70 and $4.00.
• Corn: Corn prices are trading slightly lower this morning, but remain near their highest level in weeks. Corn has been supported by strong demand from the ethanol and livestock sectors. However, corn could face some headwinds today if US inflation data comes in higher than expected. The corn spot price is trading in a bullish trend, with support at $480.00 and resistance at $500.00. A break above $500.00 would open the door to further gains towards $520.00 and $540.00.
• Wheat: Wheat prices are trading slightly lower this morning, but remain near their highest level in months. Wheat has been supported by supply concerns following the war in Ukraine. However, wheat could face some headwinds today if US inflation data comes in higher than expected. The wheat spot price is trading in a bullish trend, with support at $550.00 and resistance at $570.00. A break above $570.00 would open the door to further gains towards $590.00 and $610.00.
• Soybeans: Soybean prices are trading slightly lower this morning, but remain near their highest level in weeks. Soybeans have been supported by strong demand from China. However, soybeans could face some headwinds today if US inflation data comes in higher than expected. The soybean spot price is trading in a bullish trend, with support at $480.00 and resistance at $500.00. A break above $500.00 would open the door to further gains towards $520.00 and $540.00.
• Gold, Silver, Copper: Please check Metals category

Indices

• S&P 500 Index: The S&P 500 Index is trading slightly lower this morning, but remains near its highest level in weeks. The S&P 500 has been supported by strong earnings growth and a positive economic outlook. However, the S&P 500 could face some headwinds today if US inflation data comes in higher than expected. A break above 4,400 would open the door to further gains towards 4,500 and 4,600
• Dow Jones Industrial Average: The Dow Jones Industrial Average is trading slightly lower this morning, but remains near its highest level in weeks. The Dow has been supported by strong earnings growth from its component companies. However, the Dow could face some headwinds today if US inflation data comes in higher than expected. A break above 34,000 would open the door to further gains towards 34,500 and 35,000.
• Nasdaq Composite Index: The Nasdaq Composite Index is trading slightly lower this morning, but remains near its highest level in weeks. The Nasdaq has been supported by strong earnings growth from its component technology companies. However, the Nasdaq could face some headwinds today if US inflation data comes in higher than expected. A break above 14,000 would open the door to further gains towards 14,500 and 15,000.
• FTSE 100 Index: The FTSE 100 Index is trading slightly lower this morning, but remains near its highest level in months. The FTSE 100 has been supported by strong earnings growth from its component companies. However, the FTSE 100 could face some headwinds today if US inflation data comes in higher than expected. A break above 7,600 would open the door to further gains towards 7,700 and 7,800.
• DAX Index: The DAX Index is trading slightly lower this morning, but remains near its highest level in months. The DAX has been supported by strong earnings growth from its component companies. However, the DAX could face some headwinds today if US inflation data comes in higher than expected. A break above 14,100 would open the door to further gains towards 14,200 and 14,300.
• CAC 40 Index: The CAC 40 Index is trading slightly lower this morning, but remains near its highest level in months. The CAC 40 has been supported by strong earnings growth from its component companies. However, the CAC 40 could face some headwinds today if US inflation data comes in higher than expected. A break above 6,600 would open the door to further gains towards 6,700 and 6,800.

Cryptocurrencies

• Bitcoin: the market leader with price movements often dictate the direction of the broader cryptocurrency market, has been trading in a relatively tight range over the past few days, between $26,000 and $28,000. A break above $28,000 could signal a bullish continuation, while a break below $26,000 could lead to further losses.
• Ethereum: the second-largest cryptocurrency by market capitalization which is often considered to be a bellwether for the altcoin market, has been underperforming BTC in recent weeks but has shown some signs of recovery in recent days. A break above $1,600 could signal a bullish continuation for ETH, while a break below $1,500 could lead to further losses.
• Other altcoins are also trading sideways this morning, with some notable exceptions. Solana (SOL) has jumped by almost 7% after integration with Shopify’s Solana Pay, enabling USDC stablecoin payments. Cardano (ADA) is also up by over 3% on the day.

Current Factors Affecting the Markets and Events to Watch Out For

• ‘Tis the season for Q3 earnings which will affect the price of of all instruments.
• Fed rate hike expectations: Investors are still pricing in a 75 basis point interest rate hike from the Federal Reserve at its next meeting in November.
• Geopolitical news: Any escalation in the war in Ukraine could also weigh on the forex market.
• US-China trade war: The US-China trade war is still ongoing, and could continue to weigh on the global economy and the forex market.
• The Chinese government’s recent efforts to stimulate the economy
• Central bank monetary policy decisions
• Changes in investor sentiment
• The adoption of cryptocurrencies by businesses and individuals is growing, but it is still in its early stages.