In a wait and see mode the market closed yesterday with the DXY slightly higher, the SP500 Futures higher too, as well as the US10 Year Yields closed significantly higher around 3.72% reflecting a non-aligned market sentiment in other words a mixed sentiment
For today, as of the time of writing the DXY is trading +0.19% for the day, SP500 Futures -0.10%, and the US10YY slightly higher with +0.10% today. Moreover Oil (WTI) is slightly down and Silver is -1.84% reflecting a sour sentiment ahead of the S&P Global PMI release.
The S&P Global PMI’s analysts’ consensus is expected to tick lower from the previous release. If it came out meeting consensus or lower it will imply an economical slowdown. Looking at it along with a sticking inflation the data could support a pause in rate hikes. A pause n rate hikes could weigh on the USD and send equities higher. However, if the release beats the consensus and comes out higher it will imply that the economy can take more rate hikes which will support the USD bulls on the back of equities and risk assets.
With the US10YY trending upwards, suggesting weaker Gold and Silver, my focus turns towards these assets as the best runners for today.
Silver 1Dr
Technically speaking, Silver is in a bearish pullback within a robust bullish trend on the daily time frame. As we can see in the above chart, Silver took out the change of character (ChoCh) support, now resistance, then formed a swing high. Today Silver took Out Mon’s Low which is the breakout level of the swing high. Keep in mind that this is a significant pullback within a bullish trend so trading ought to be with care and good risk management. Trade pullbacks with care if necessary.
Forex Daily: Focus is on Today’s PMIs and Debt Ceiling Developments
