Hello traders, welcome to Wednesday’s session, where the calendar started strong and continues to offer some key data points.
This morning, the main macroeconomic focus was on inflation figures from Australia and the UK. Both came in below expectations and below previous readings. While lower inflation typically pressures currencies, we’re seeing mixed reactions. The British Pound is reacting as expected, weakening sharply and taking the bottom spot among major currencies today. Interestingly, the Australian Dollar is bucking the trend—it’s gaining strength despite the softer inflation print, supported by broader demand for commodity currencies.
Looking across the FX board, we’re seeing notable gains in the Canadian Dollar, New Zealand Dollar, and Norwegian Krone. On the other side, alongside the Pound, the Japanese Yen is underperforming, adding to the risk-on sentiment in the market.
Equity futures opened the day with a modest drop, suggesting a pause in what has otherwise been a bullish week. Major indices, particularly in the U.S., are still on track for gains this week, with price action hinting at a broader V-shaped recovery. Today’s slight pullback seems more like a short-term correction rather than a shift in sentiment.
On the commodities front, oil is maintaining its momentum and climbing higher, continuing what is so far a positive week. Metals are showing a more mixed picture. Gold and copper are inching up, reflecting the general risk appetite, while silver, platinum, and palladium are in the red, giving us a split landscape among precious metals.
Still to come on the economic calendar today is a key release from the U.S.—durable goods orders, expected at -1.1%. Depending on the print, we could see more volatility in the USD pairs later in the day.