CTA buying supports Platinum – TDS

FXStreet Insights Team FXStreet

Large-scale CTA buying activity may have supported Platinum markets last session, but signs of buying exhaustion could now morph into selling activity, TDS Senior Commodity Strategist Daniel Ghali notes.

Palladium may still jump higher

“Prices will now have to rally towards $995/oz to keep CTAs from shedding some of their recently added length, and a big downtape over the coming week could spark massive CTA selling activity totaling up to -40% of the algos' max size.”

“That being said, there are still some scenarios for the coming week that could result in continued buying activity from algorithmic trend followers, but the set-up for flows is already pointing to extreme downside asymmetry.”

“The set-up in Palladium, on the other hand, is nearly symmetric, with a big uptape still likely to catalyze large-scale buying activity from algorithmic trend followers. This is particularly notable given that our gauge of discretionary trader positions suggests that this cohort has now already reestablished its near-record short position.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD climbs toward 0.7000 after strong China data dump

AUD/USD attracts follow-through buyers for the second straight day on Monday, extending last week's recovery toward 0.7000 in Monday's Asian trading. Strong Chniese Q3 GDP and activity data for September strengthen the pair's advance, following RBA Assistant Governor Chris Kent's hawkish remarks.

USD/JPY struggles near 158.00 amid hawkish BoJ, subdued USD

USD/JPY remains defensive near 158.00 in the Asian session on Monday, as the US Dollar remains depressed near a two-week low amid the recent decline in US bond yields. Furthermore, looming intervention risks underpin the Japanese Yen and weigh on the pair amid BoJ Governor Kazuo Ueda's hawkish remarks. However, Fed rate-hike bets and geopolitical uncertainties could limit USD losses and the major.

Gold bulls hesitant below $4,200 as Fed risks and firmer USD cap intraday gains

Gold struggles to capitalize on modest intraday gains and remains below the $4,200 mark, well within a three-week-old trading range. US Federal Reserve Chair Kevin Warsh’s unwillingness to offer fresh cues on further policy moves forced investors to price out the possibility of policy tightening later this month. Moreover, the recent sharp pullback in US government bond yields from multi-year highs, which dragged the US Dollar to a two-week low on Friday, acts as a tailwind for bullion.

Pi Network: Weak momentum and waning demand reinforce downside bias

Pi Network edges lower, risking a bearish conclusion to its short-term consolidation above the $0.0774 horizontal support. A steady decline in the notional value of active PI futures contracts and the weekly spot trading volume suggests reduced retail demand. The PI token risks a retest of its record low around $0.0704 as bearish momentum remains dominant on the daily chart.

Canada CPI expected to show a pick-up in inflation in September

Canada’s September CPI figures will be the focus of attention on Monday. Indeed, Statistics Canada data will provide markets with an update on price pressures ahead of the BoC’s October 28 gathering, when officials are expected to keep the interest rate steady at 2.25%, broadly in line with analyst consensus.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.