Hello Traders, welcome on Monday, the first day of trading this week. The Asian session has already concluded, and traders were focused on the highly anticipated press briefing from China's Minister of Finance on Saturday. The Minister hinted at increasing debt issuance to support the economy, stating that the government had considerable room to expand its deficit. This statement led to choppy trading in Asian indices.
As for today's calendar, it's fairly quiet, with Japan, Canada, and the US markets closed for the day. No major moves are expected, given the lack of significant data. Market openings showed mixed results, but the tone remains positive, especially with American indices like the S&P 500 poised to reach new long-term highs.
On the currency front, the American dollar is currently the strongest performer, while antipodean currencies like the Australian and New Zealand dollars are under pressure. Commodities began with a dip in oil and precious metals, but both gold and silver are now recovering. Gold, in particular, seems poised to set new long-term highs with a bullish setup in place.
Technically, British Pound to Swiss Franc is one pair to watch, as it is moving sideways, and a breakout could provide a solid trading signal. Additionally, Euro to Japanese Yen is testing a key horizontal resistance level, with a breakout likely to trigger a strong buy signal.