Daily Market Lookup

• Asian currencies and the dollar were largely muted on Wednesday as fresh U.S.-Iran attacks dampened hopes for a near-term peace deal, while investors awaited a key U.S. inflation report that could shape expectations for Federal Reserve policy. Iran said on Wednesday it had targeted U.S. bases in Jordan and several Gulf states in response to President Donald Trump’s decision to order strikes on Iranian military sites near the Strait of Hormuz. The escalation raised concerns over oil supplies and pushed crude prices higher, adding to worries that energy-driven inflation could remain elevated globally. Data on Wednesday showed China’s consumer inflation remained subdued in May even as factory-gate inflation accelerated to its highest level in nearly four years. The Japanese yen’s USD/JPY pair was broadly steady. Data showed Japan’s producer prices rose 6.3% in May from a year earlier, exceeding forecasts and reinforcing expectations that the Bank of Japan could continue normalising monetary policy at next week’s meeting. Markets are now focused on U.S. consumer inflation data, due later on Wednesday, which could offer fresh clues on the Federal Reserve’s interest-rate outlook.
• Gold prices fell for a fourth consecutive session on Wednesday, pressured by a stronger U.S. dollar and rising expectations of a Federal Reserve rate hike, as fresh U.S. strikes on Iran kept energy-driven inflation concerns in focusU.S. Gold Futures also dropped 1.9% to $4,204.75, as investors reduced exposure ahead of key U.S. consumer price index (CPI) data due later on Wednesday. Washington launched new strikes on Iranian targets on Tuesday following the downing of a U.S. military helicopter near the Strait of Hormuz, reigniting fears of broader disruptions to global energy supplies. Oil prices rose around 1% on Wednesday, adding to concerns that higher fuel costs could feed into inflation and complicate the Federal Reserve's policy outlook. The prospect of persistent inflation has prompted investors to scale back expectations for U.S. rate cuts. More than 70% of market participants are pricing in a Fed rate hike by December. Higher interest rates tend to weigh on non-yielding bullion by increasing the opportunity cost of holding the precious metal. Treasury yields remained near multi-month highs while the dollar stayed firm ahead of the inflation report. Investors are closely watching the CPI data for signs of whether inflationary pressures are accelerating. Economists expect annual consumer inflation to rise to around 4.2% in May, which would mark the highest reading since April 2023 and could reinforce expectations that the Fed will maintain a restrictive policy stance. Markets are also looking ahead to the Federal Reserve's June 16-17 policy meeting, where policymakers are widely expected to leave rates unchanged but could signal a more hawkish outlook if inflation remains elevated.
• Oil prices rebounded in Asian trade on Wednesday, as fresh U.S. strikes on Iran over the downing of an American helicopter reignited supply concerns and cast doubt on a fragile ceasefire. Washington launched strikes on Iranian targets near the Strait of Hormuz on Tuesday, following the downing of a U.S. Apache helicopter by what U.S. officials said was an Iranian drone attack. President Donald Trump described the response as a "proportional" retaliation, while Tehran warned it would answer any further military action. The latest escalation threatens to unravel tentative progress toward de-escalation after Iran and Israel agreed earlier this week to halt attacks following appeals from Trump. Traders had previously interpreted the pause in hostilities as a sign that the conflict might be moving toward a diplomatic resolution, prompting a selloff in crude. Attention remains focused on the Strait of Hormuz, a critical artery for global energy supplies through which roughly a fifth of the world’s oil and liquefied natural gas flows. Although U.S. Energy Secretary Chris Wright said vessel traffic and oil exports through the Gulf have been improving in recent weeks, he cautioned that energy flows remain below normal and could take months to fully recover. Further supporting prices, industry data showed U.S. crude inventories fell sharply last week. The American Petroleum Institute reported a 9.12 million-barrel draw in crude stockpiles, much larger than the expected 3.4 million-barrel decline. Gasoline inventories fell by 1.19 million barrels, while distillate stocks rose by 1.32 million barrels. The data reinforced concerns that global inventories could tighten further if Middle East tensions escalate Investors now await official U.S. government inventory data from the Energy Information Administration later on Wednesday for confirmation.

Gold – XAU

Gold on Tuesday interaday high of US$4363.43/oz and low of $4236.56/oz. God is by 1.635% at US$4260.02/oz.

Technicals in Focus:

On the daily charts, gold trades higher than 20DMA (2197). If it drops below this level, it could lead to 2,100. The MACD is currently above the zero line and the histograms are showing an increasing trend, indicating that there may be upward movement in the coming sessions. The RSI is currently at 83.04, which is in the overbought region, suggesting there may be selling pressure in the next 2 to 3 sessions. The Stochastic Oscillator is also in the overbought territory but has given a positive crossover, indicating a bullish stance for intraday trades, but rebound in expected in all the overbought indicators.

Trading Strategy: Sell on Strength

Sell below 4200-4665 keeping stop loss closing above 4665, targeting 4180-4150-4135-4100 and 4085-4071-4050. Buy in between 4180-4050 with risk below 4050 targeting 4200-4254-4300-4315-4330 and 4348-4400-4428.

Silver - XAG

Silver on Tuesday its intraday high of US69.01/oz and low of US$64.34/oz settle down by 4.19% at US$65.29/oz.

Technicals in Focus:

On daily charts, silver is sustaining above 20MA (25.05), breakage above will lead to 23.73. MACD is below the zero line and histograms are increasing trend, bringing a bullish stance in the upcoming sessions. RSI is in the oversold region, indicating a sell signal for now. The Stochastic Oscillator is in the overbought region and gives a positive crossover to show an upside move for the intraday trade.

Trading Strategy: Buy on Dips

Buy in between 64.00-60.00 targeting 64.90-65.50-66.15-67.00 and 67.70-68.00-68.90-69.70 with stop loss should be placed on the breakage below 64.00. Sell in between 65.00-70.00 with a stop loss above 70.00 targeting 64.00-63.30-62.50 and 61.50-60.90-60.00.

Oil - WTI

Crude Oil on Tuesday high of US$93.46/bbl, an intraday low of US$84.76/bbl, and settled down by % to close at US$87.32/bbl.

Technicals in Focus:

On daily charts, oil is sustaining above its 100DMA i.e. 75.37, a support level, and breakage above will call for 77.48. MACD is above the zero line and histograms are in increasing mode will bring a bullish stance in the upcoming sessions. The Stochastic Oscillator is in the overbought region, giving a negative crossover to confirm a bearish stance; while the RSI is in the neutral region, more upsides can be expected to reach the overbought region, which is highly probable.

Trading Strategy: Neutral to Sell

Sell in between 88.00-96.00 with stop loss at 96.00 targeting 86.90-86.00-85.10-84.00 and 83.20-82.40. Buy above 87.00-82.00 with risk daily closing below 82.00, targeting 88.00-89.00-89.90-90.94 and 92.00-93.30-93.80-94.60-95.30.

EUR/USD

EUR/USD on Tuesday made an intraday low of US$1.1526/EUR, a high of US$1.1577/EUR, and settled up by 0.077% to close at US$1.1542/EUR.

Technicals in Focus:

On daily charts, prices are sustaining above 100DMA (1.1661), which becomes immediate support, a break below will target 1.1695. MACD is above the zero line and histograms are increasing mode, bringing a bullish view. Stochastic is in oversold territory, giving negative crossovers to the bullish outlook for intraday. 14D RSI is currently in a neutral region and giving no directions to consider right now.

Trading Strategy: Neutral to Sell

Sell below 1.1565-1.1990, targeting 1.1520-1.1485-1.1450-1.1410 with stop-loss at daily closing above 1.1990. Buy above 1.1530-1.1450 with risk below 1.1450 targeting 1.1565-1.1590-1.1630-1.1690-1.1750 and 1.1790-1.1840-1.1920-1.1960.

GBP/USD

GBP/USD on Tuesday made a intraday low of US$1.3329/GBP, a high of US$1.3410/GBP, and settled the day up by 0.311 % to close at US$1.3377/GBP.

Technicals in Focus:

On daily charts, prices are sustaining above 50DMA (1.2674) is becoming a support level. 14-D RSI is currently in a neutral region and direction is difficult to predict on an RSI basis. The Stochastic Oscillator is in oversold territory and gives a positive crossover to confirm a bullish stance. MACD is above the zero line, but histograms are increasing leading to movement.

Trading Strategy: Neutral to Buy

Based on the charts and explanations above; buy between 1.3350-1.3150 with a target of 1.3436-1.3500-1.3570 and 1.3600-1.3640-1.3690-1.3725 with a stop loss closing below 1.3150. Sell in between 1.3390-1.3820 with targets at 1.3490-1.3440-1.3395-1.3325-1.3275 and 1.3250-1.3190-1.3150 with a stop loss of 1.3900.

USD/JPY

USD/JPY on Tuesday made an intra‐day low of JPY160.04/USD an intraday high of 160.43/USD, and settled the day up by 0.181% at JPY160.33/USD.

Technicals in Focus:

In daily charts, JPY is sustaining above 100DMA (152.35), major support on the daily chart. 14-D RSI is currently in the overbought region and chances of downward are expected based on RSI. MACD is above the zero line but histograms are decreasing mode which might lead to downward movement. The Stochastic Oscillator is in overbought territory and signaling to sell as it has given a negative crossover to confirm a bearish stance.

Trading Strategy: Neutral to Sell

Sell below 160.70-163.10 with risk above 163.10 targeting 158.70-158.10-157.00 and 156.60-153.00-152.65-152.10. Long positions above 160.00-152.00 with targets of 159.40-160.00 and 160.90-161.60-162.20-162.60 with stops below 148.00.