Hello traders, and welcome to Friday! Let's dive into the market activities from Thursday and the unfolding developments this Friday morning.
On Thursday, we witnessed weaker-than-expected inflation data from Switzerland, which initially led to a dip in the Swiss franc. However, this decline was short-lived as the franc regained its footing quickly. In the UK, the parliamentary elections concluded with a Labour Party victory, a result widely anticipated and thus having a muted impact on the markets. With U.S. markets closed for Independence Day, overall trading volume was lower, leading to subdued market movements.
Indices had a positive performance on Thursday, with the S&P 500 and NASDAQ nearing their all-time highs. European indices, particularly the DAX, are playing catch-up, buoyed by a generally positive market sentiment. Today, all eyes are on the U.S. non-farm payrolls report, a crucial data point expected to provide insights into the U.S. labor market's health and potentially influence future monetary policy decisions. Traders are eagerly awaiting this report, which is anticipated to be a significant market mover.
The forex market shows a strengthening yen after a weak start to the week, where the American dollar to Japanese yen reached new long-term highs. This trend reversed on Thursday, with the yen gaining ground and continuing its upward momentum into Friday. The Australian dollar remains strong, bolstered by positive retail sales data earlier in the week. In commodities, gold and silver are experiencing minor corrections after their recent gains, while oil continues to show strength, trading near mid-term highs.