Here are the Top Market Analysis for the 5th of October, 2023.

Currencies (Forex – FX)

• USD/JPY: USD/JPY is trading lower on Wednesday, with the price trading below 143.50. The Japanese yen is benefiting from a decline in the US dollar, as well as from expectations that the Bank of Japan will maintain its ultra-loose monetary policy.
• EUR/USD: EUR/USD is trading higher on Wednesday, with the price trading above 1.0150. The euro is benefiting from a decline in the US dollar, as well as from expectations that the European Central Bank will continue to raise interest rates.
• GBP/USD: GBP/USD is also trading higher on Wednesday, with the price trading above 1.1650. The British pound is benefiting from a decline in the US dollar, as well as from expectations that the Bank of England will slow the pace of its interest rate hikes.
• AUD/USD: AUD/USD is also trading higher on Wednesday, with the price trading above 0.5850. The Australian dollar is benefiting from a decline in the US dollar, as well as from a rise in commodity prices.
• NZD/USD: NZD/USD is also trading higher on Wednesday, with the price trading above 0.5350. The New Zealand dollar is benefiting from the same factors that are weighing on the Australian dollar.
• USD/CAD: USD/CAD is trading lower on Wednesday, with the price trading below 1.3300. The Canadian dollar is benefiting from a rise in oil prices.

Metals

• Gold: Gold is trading higher on Thursday, as investors seek safety in the wake of rising recession risks. Gold is also benefiting from a weaker US dollar.
• Silver: Silver is also trading higher on Thursday, tracking the gains in gold. Silver is also being supported by strong industrial demand.
• Copper: Copper is trading lower on Thursday, on concerns about a potential global recession. Copper is a key industrial metal and is sensitive to changes in economic growth.
• Aluminum: Aluminum is also trading lower on Thursday, on concerns about a potential global recession. Aluminum is also being weighed down by weak demand from the construction sector.
• Nickel: Nickel is trading higher on Thursday, as investors bet on strong demand from the electric vehicle sector. Nickel is a key component in batteries for electric vehicles.

Commodities

• Oil: Oil prices are trading lower on Thursday, on concerns about a potential global recession. Oil is a cyclical commodity and is sensitive to changes in economic growth.
• Natural gas: Natural gas prices are trading higher on Thursday, as traders bet on strong demand from the power sector. Natural gas is also being supported by supply concerns in Europe.
• Wheat: Wheat prices are trading lower on Thursday, on concerns about a potential global recession. Wheat is a staple food commodity and is sensitive to changes in economic growth.
• Corn: Corn prices are also trading lower on Thursday, on concerns about a potential global recession. Corn is a major feed crop and is also used in ethanol production.
• Soybeans: Soybean prices are trading higher on Thursday, on strong demand from China. Soybeans are a major oilseed crop and are also used in animal feed.
• Gold, Silver, Copper: Please check Metals category

Indices

• S&P 500: The S&P 500 is in a neutral trend, with the index trading between 4,250 and 4,300 points. A break above 4,300 points could open the door to further gains towards 4,350 points, while a break below 4,250 points could lead to further losses towards 4,200 points. Key Support Levels: 4,250, 4,200, 4,150. Key Resistance Levels: 4,300, 4,350, 4,400
• Nasdaq Composite: The Nasdaq Composite is also in a neutral trend, with the index trading between 13,000 and 13,100 points. A break above 13,100 points could open the door to further gains towards 13,200 points, while a break below 13,000 points could lead to further losses towards 12,900 points. Key Support Levels: 13,000, 12,900, 12,800. Key Resistance Levels: 13,100, 13,200, 13,300
• Dow Jones Industrial Average: The Dow Jones Industrial Average is also in a neutral trend, with the index trading between 33,500 and 34,000 points. A break above 34,000 points could open the door to further gains towards 34,500 points, while a break below 33,500 points could lead to further losses towards 33,000 points. Key Support Levels: 33,500, 33,000, 32,500. Key Resistance Levels: 34,000, 34,500, 35,000
• FTSE 100: The FTSE 100 is in a downtrend, with the index trading below 7,600 points. A break below 7,600 points could open the door to further losses towards 7,550 points, while a break above 7,600 points could lead to a short-term rebound. Key Support Levels: 7,600, 7,550, 7,500. Key Resistance Levels: 7,650, 7,700, 7,750
• DAX: The DAX is also in a downtrend, with the index trading below 15,250 points. A break below 15,250 points could open the door to further losses towards 15,200 points, while a break above 15,250 points could lead to a short-term rebound. Key Support Levels: 15,250, 15,200, 15,150. Key Resistance Levels: 15,300, 15,350, 15,400

Cryptocurrencies

• Bitcoin: the world’s largest cryptocurrency, is trading slightly higher on Thursday, as investors seek safety in the wake of rising recession risks. Bitcoin is also benefiting from a weaker US dollar.
• Ethereum: the second-largest cryptocurrency, is also trading slightly higher on Thursday, tracking the gains in Bitcoin. Ethereum is also being supported by strong demand from decentralized finance (DeFi) and non-fungible token (NFT) projects.
• Other Cryptocurrencies: such as Solana, Cardano, and Binance Coin are also trading mixed on Thursday. Some cryptocurrencies are rising on the back of a weaker US dollar, while others are falling on concerns about a potential global recession.

Current Factors Affecting the Markets and Events to Watch Out For

• Strong earnings reports: A number of companies have reported strong earnings results in recent weeks. This is boosting investor sentiment and supporting stock prices. Short covering: Short sellers are buying back stocks that they had previously borrowed and sold, in anticipation of a decline in prices. This buying is helping to support stock prices.
• 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.