Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Chinese 1-Year Loan Prime Rate for November was reported at 3.45%, and the Chinese 5-Year Loan Prime Rate at 4.20%. Economists predicted a figure of 3.45% and 4.20%. Forex traders can compare this to the previous Chinese 1-Year Loan Prime Rate for October, reported at 3.45%, and the Chinese 5-Year Loan Prime Rate reported at 4.20%.
The German PPI for October decreased by 0.1% monthly and plunged by 11.0% annualized. Economists predicted a decrease of 0.1% and 11.0%. Forex traders can compare this to the German PPI for November, which contracted by 0.2% monthly and collapsed by 14.7% annualized.
The US Leading Index for October is predicted to drop 0.7% monthly. Forex traders can compare this to the US Leading Index for September, which contracted 0.7% monthly.
The new trading week starts with no market-moving economic data, which could increase the focus on government bill auctions in Germany, France, and the US. Traders will also get the Bundesbank Monthly Report, which notes economic issues, monetary policy, and financial and economic policy issues. Some traders may attempt to extend last week’s trends following weaker US CPI and PPI reports, but US Fed officials made it clear that one report does not mean a policy change will follow. Market participants who hope for interest rate cuts next year could receive a massive disappointment unless the global economy plunges into a deep recession.
The lack of market-moving news could also put the election victory by Javier Milei in the Argentinian run-off elections in focus. Argentina will join BRICS, and Milei promises radical changes to the status quo of a fractured political system, including dollarizing its economy and abandoning the Argentinian central bank.
The forecast for the XAG/USD is cautiously bullish after this precious metal completed a breakout above its flat and narrowing Ichimoku Kinko Hyo Cloud, followed by a higher high. The Senkou Span B remains flat, while the Senkou Span A drifts lower, suggesting more volatility ahead. The flat Tenkan-sen and ascending Kijun-sen confirm the potential of a volatility increase as bulls and bears wrestle for directional control. Traders should also monitor the CCI in extreme overbought level, on the brink of a breakdown below 100. As long as this technical indicator stays above zero, bulls have a platform to launch the next leg higher. Can bulls withstand signs of short-term bearishness and power the XAG/USD into its horizontal resistance area and potentially a new all-time high in 2023? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for Silver remain inside the or breakout above the 23.430 to 23.930 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 23.625
- Take Profit Zone: 25.250– 26.130
- Stop Loss Level: 23.000
Should price action for Silver breakdown below 23.430, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 23.000
- Take Profit Zone: 20.970 – 21.390
- Stop Loss Level: 22.430
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
