Federal Reserve Chair Jerome Powell sent risk sentiment higher by hinting at an October rate cut and an end to quantitative expansion.

1. The major even driving market sentiment today is Fed Chair Jerome Powell’s comment yesterday, to the effect that a rate cut at the Fed’s meeting later this month has become more likely, with the CME FedWatch tool now suggesting markets are pricing in a rate cut of 0.25% this month, as well as another one at the following meeting in December. This has sent stock markets (especially in the USA) higher and the US Dollar lower. US Treasury Yields are testing long-term lows, so trend traders will be thinking about shorting the 2-Year US Treasury Yield.
2. Precious metals are in strong focus as they all continue to rise with strong bullish momentum. Notable highlights:
   1. Gold is pushing to a new record high at $4,190 right now as I type during the Asian session. It is trading in blue sky and there is no telling how high it might rise – it might also be a bullish sign that there was little resistance at $4,000 to the continued advance.
   2. Silver rose strongly yesterday to make a new all-time high price at $53.62, well beyond the 1980 “Hunt Brothers” high. Like Gold, it can keep going to any level, and it broke the big round number at $50 quite easily.
   3. Platinum is rising, but it has not yet tested its high made last week. Although Platinum futures are too large for most retail traders to safely trade, exposure to the price of Platinum can be obtained via the PPLT ETF which is affordable.
   4. Palladium has risen to make a new 2-year high today, and its price action is looking bullish. Although Platinum futures are too large for most retail traders to safely trade, exposure to the price of Platinum can be obtained via the PALL ETF which is affordable.
   5. Trend and momentum traders will be interested in being long of Gold and Silver, and probably Platinum and Palladium also.
3. In the Forex market, the Australian Dollar has been the strongest major currency since today’s Tokyo open, while the New Zealand Dollar has been the weakest. The USD/JPY currency pair is in some focus after triggering a long trade entry at most trend-following funds.
4. Risky assets are generally higher on the US stock market rebound. Both the S&P 500 Index and the NASDAQ 100 Index are showing bullish price action with the broader S&P 500 looking a bit more bullish.
5. There are no potentially high-impact data points scheduled for release today

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