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Forex Today: Precious Metals Gain While Dollar Slips

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

The precious metals Gold and Silver are trading higher, while the US Dollar has lost some ground.

  1. The precious metals Gold and Silver have risen again over the past day, especially spot Silver which has outperformed Gold. Long-term trend traders will still be interested in Silver on the long side.
  2. In the Forex market, the strongest major currency since the Tokyo open is the Australian Dollar, while the US Dollar is the weakest major currency, putting the AUD/USD currency pair in focus.
  3. In Europe, Wheat futures are trading today at a new 10-month high, which is a bullish sign. This is the only major commodity breaking to a new long-term high. Trend traders will be interested here on the long side. For traders or investors unable to afford Wheat futures, there is a Wheat ETF with the ticker WEAT that can be purchased.
  4. Stock markets are mixed. Major indices in Asia were broadly higher but these markets mostly gave up much of their gains towards the end of the trading day. However, there are long-term bullish trends in many stock markets, notably in the NASDAQ 100 Index which closed Friday at a record high price.
  5. There has been some talk about the Japanese Yen’s role in the carry trade as the currency to be short of due to its still low interest rates. Nomura are suggesting that even if the Bank of Japan raises rates over the course of 2024, the Yen could remain attractive in this trade, with the USD/JPY currency pair held long over the past year returning 18% in interbank trading – retail traders will be unlikely to have received anything close to this due to retail getting relatively poor swaps from most CFD brokers.
  6. There will be a release today of CB Consumer Confidence data for the USA.

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Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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