Hello traders, and welcome to Wednesday's trading session. The markets opened with significant developments across the board, starting with weaker-than-expected GDP data from Australia, which came in at 0.3%. This has caused notable weakness in antipodean currencies, with both the Australian and New Zealand dollars under pressure. Later today, the focus will shift to key U.S. data, including the ADP non-farm employment change and services PMIs, as well as speeches from prominent central bankers like ECB President Christine Lagarde and Fed Chair Jerome Powell.
Currency Market: Antipodean Weakness, British Pound Leads
The Australian and New Zealand dollars are currently the weakest currencies, heavily impacted by the disappointing Australian GDP figures. Japanese yen weakness is also notable, signaling a potential start to a correction in yen pairs, which had been under significant pressure in recent weeks. On the other side of the spectrum, the British pound is leading the charge, showing strength amid a generally positive sentiment in European markets.
Indices: Nasdaq and DAX Continue to Climb
Global indices are maintaining a bullish tone, with futures on the Nasdaq, S&P 500, and DAX reaching new long-term highs. Despite struggles in certain regions, such as the French CAC 40, the overall sentiment in equity markets remains positive. The ongoing "Santa rally" appears to be in full swing, fueled by optimism as December trading progresses.
Commodities: Metals Gain, Oil Defends Key Levels
Metals are experiencing a positive sentiment, with technical setups supporting further gains as the week unfolds. Gold and silver are showing resilience, and the bullish trend could continue through the end of the week. Meanwhile, oil is attempting a recovery, defending a key horizontal support level. This effort could set the stage for a short-term bullish reversal, but the broader trend remains uncertain.
Headlines: Political Turmoil in South Korea
Political instability in South Korea has grabbed headlines, leading to declines in the South Korean won and their stock exchange. However, this turmoil has had little to no impact on broader global markets, with the focus remaining on U.S. data and central bank commentary.