Hello traders! On this Thursday, the market is digesting the softer-than-expected inflation data from the U.S. that was released yesterday. This follows Tuesday's PPI report, which also came in below expectations, leading to a weakening of the U.S. dollar. Wednesday’s CPI was reported at 2.9%, slightly below the anticipated 3%. While the difference isn’t huge, the fact that it came in lower is significant and has set the tone for today’s trading.
Today’s calendar has already delivered some strong data from Australia. Although the unemployment rate ticked up, the employment change was much better than expected, with positive revisions from the previous month. This has given the Australian dollar a boost. The British pound also saw some action with GDP figures released at 0%, matching expectations. Looking ahead, we’re still waiting for U.S. retail sales, expected to rise by 0.4%, and unemployment claims data.
On the currency front, the Australian dollar is the strongest performer today, with the British pound also showing gains. On the flip side, the Swiss franc and Japanese yen are currently the weakest.
In commodities, we’re seeing a positive day for oil following a negative session yesterday. Precious metals are also performing well, with gold and others continuing to push higher. Commodities are overall in a good place today, but it’s worth noting that oil is merely experiencing a small bounce within a larger downtrend, while precious metals are hovering near long-term highs, particularly gold.
As for earnings, Cisco reported better-than-expected results after the market closed yesterday, and the pre-market is indicating a potential 6-7% rise at the open. Today, all eyes will be on Walmart’s earnings, which are yet to be released. Indices are climbing higher, indicating that the bullish correction continues across the board. The market sentiment remains positive, with a bullish bounce continuing in currency pairs involving the yen, reflecting the current market mood.