Hello traders, welcome to a busy start of the trading week! Contrary to the usual quiet Mondays, today brings a packed calendar with key PMI releases from France, Germany, the Eurozone, the UK, and the US. Recent trends suggest that manufacturing PMIs will likely continue to show weakness, coming in well below 50, while services PMIs are expected to hover just below 50. However, the US is anticipated to buck this trend with services PMI projected at 55.7, marking it as the only reading above the crucial 50 level. Adding to the day’s events, we’ll also hear speeches from ECB President Christine Lagarde and Bank of Canada Governor Tiff Macklem.
The market opened with a clear theme: corrections from last week's movements. Thursday and Friday saw strong momentum across various assets, but today most instruments are slightly reversing those trends.
On the forex market, the strongest currencies this morning are the New Zealand dollar, Swiss franc, and Australian dollar, while the American dollar and Japanese yen are showing weakness. This setup aligns with the broader sentiment shift from safe havens to riskier assets.
Looking at commodities, we’re seeing a pullback on oil after last week’s robust performance. Meanwhile, silver is staging a bullish correction after a disappointing previous week. These movements reflect a classic rebalancing as traders assess overbought and oversold conditions.
Finally, on the indices, the trend remains optimistic. Futures indicate a green start to the week, with indices climbing higher, signaling continued confidence among equity traders.
This dynamic start to the week sets the tone for what promises to be a pivotal trading period. Stay tuned for updates as the market reacts to the day’s developments!